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Sweet People Apparel, Inc. v. Phoenix Fibers, Inc.

United States District Court, C.D. California, Western Division

July 19, 2016

SWEET PEOPLE APPAREL, INC. d/b/a, MISS ME, a California corporation, and RCRV, INC. d/b/a ROCK REVIVAL, a, California corporation, Plaintiffs,
v.
PHOENIX FIBERS, INC., an Arizona corporation, U.S. GENERAL EXPORT, INC., a California corporation, SAC INTERNATIONAL TRADERS, INC., a California corporation, SHAUKAT ALI, CHOHAN, an individual, COMAK, TRADING, INC., a California, corporation, LYDIA EVILSA TERRAZAS CHO, an individual, MYUNG KWON CHO, an individual, TIFFANY ALANA WOLFF, an individual d/b/a MISS V LANE, XYZ COMPANIES 1-10, and JOHN AND JANE DOES 1-10, Defendants.

          Sweet People Apparel, Inc., Plaintiff, represented by John C. Ulin, Arnold and Porter LLP, Louis S. Ederer, Arnold and Porter LLP, pro hac vice, Matthew T. Salzmann, Arnold and Porter LLP, pro hac vice & Eric D. Mason, Arnold and Porter LLP.

          RCRV, Inc., Plaintiff, represented by John C. Ulin, Arnold and Porter LLP, Louis S. Ederer, Arnold and Porter LLP, pro hac vice, Matthew T. Salzmann, Arnold and Porter LLP, pro hac vice & Eric D. Mason, Arnold and Porter LLP.

          Phoenix Fibers, Inc., Defendant, represented by William C. O'Neill, Ross Wersching and Wolcott LLP.

          Comak Trading, Inc., Defendant, represented by Sagi Schwartzberg, Schwartzberg & Associates, APC & Michael James Luther, Schwartzberg Luther APC.

          Lydia Evilsa Terrazas Cho, Defendant, represented by Sagi Schwartzberg, Schwartzberg & Associates, APC.

          Myung Kwon Cho, Defendant, represented by Sagi Schwartzberg, Schwartzberg & Associates, APC.

          U.S. General Export, Inc., Defendant, represented by Eugene S. Alkana, Eugene S Alkana Law Office.

          Comak Trading, Inc., Cross Claimant, represented by Sagi Schwartzberg, Schwartzberg & Associates, APC & Michael James Luther, Schwartzberg Luther APC.

          U.S. General Export, Inc., Cross Claimant, represented by Eugene S. Alkana, Eugene S Alkana Law Office.

          Phoenix Fibers, Inc., Cross Defendant, represented by William C. O'Neill, Ross Wersching and Wolcott LLP.

          STIPULATED PROTECTIVE ORDER FOR CONFIDENTIAL TREATMENT OF DOCUMENTS OR INFORMATION [CHANGE MADE TO PARAGRAPH E]

          JACQUELINE CHOOLJIAN, Magistrate Judge.

         In connection with the production of confidential documents and other confidential information in this action, the parties, through their respective counsel, hereby enter into this Stipulated Protective Order for Confidential Treatment of Documents or Information (the "Stipulated Protective Order").

         Statement of Good Cause: This action involves claims for, among other things, trademark infringement and unfair competition under the Lanham Act, 15 U.S.C. § 1051, et seq., unfair competition and dilution under California statutory law, and common law trademark infringement, unfair competition and breach of contract under California law. The parties are variously designers, distributors, retailers, recyclers and resellers of jeanswear and other apparel items. The parties recognize that discovery requesting information from the parties, their vendors, customers and clients, including financial information, market information and other commercially and competitively sensitive information may be necessary to prove and/or disprove Plaintiffs' claims and Defendants' defenses. The parties further anticipate that there will be depositions of the parties' employees or agents and third party customers or clients, and such persons will likely be asked questions on these potentially sensitive subject areas. Plaintiffs believe that they will likely be placed at a competitive or economic disadvantage if such confidential and/or proprietary information is disclosed to other parties and/or the public at large. Plaintiffs believe that Stipulated Protective Order is therefore necessary to avoid any prejudice or harm in the form of loss of competitive advantage which would likely result if such information was disclosed in the absence of the protections set forth herein. Plaintiffs believe that this Stipulated Protective Order is also necessary for the orderly management of this litigation. Plaintiffs contend that without this Stipulated Protective Order, the exchange of party information, as well as information potentially needed from third parties, may become logistically very difficult, time consuming and expensive.

         Exercise of Restraint and Care in Designating Material for Protection: Each party or non-party that designates documents or information for protection under this Stipulated Protective Order must take care to limit any such designation to specific material that qualifies under the appropriate standards. A designating party must take care to designate for protection only the documents or information that qualifies for such protection. In that regard, mass and/or indiscriminate designations are prohibited. Designations that are shown to be clearly unjustified, or that have been made for an improper purpose ( e.g., to unnecessarily encumber or delay the case development process, or to impose unnecessary expenses and burdens on other parties), expose the designating party to sanctions.

         A. Definition of "Confidential" Information

         1. "Confidential, " as used herein, means all information in whatever form, such as oral, written, documentary, tangible, intangible, electronic, or digitized now or hereafter in existence that:

         a. is protected as a "Trade Secret" under the Uniform Trade Secrets Act, California Civil Code Section 3426, et seq., as defined at Section 3426.1(d): "[I]nformation, including a formula, pattern, compilation, program, device, method, technique, or process, that: (1) Derives independent economic value, actual or potential, from not being generally known to the public or to other persons who can obtain economic value from its disclosure or use; and (2) Is the subject of efforts that are reasonable under the circumstance to maintain its secrecy"; or

         b. is otherwise regarded by a party as being confidential, private, or proprietary in nature, including for example personal and private information regarding individuals such as personnel records; and

         c. as illustrative examples only, the parties anticipate that the following descriptive categories will be designated as Confidential information under this Stipulated Protective Order, including, but not limited to, employee records and information, and customer lists.

         2. Confidential information is unlimited in kind or form and includes, by way of example only and without limitation thereto, information relating to the following: any products, designs, specifications, tests, plans, studies, surveys, manufacture, distribution, marketing, promotion, advertisement, sales, opportunities, vendors, customers, financial matters, costs, sources, prices, profits, research, development, analysis, know-how, personnel, strategies, or competition.

         3. This Stipulated Protective Order shall not apply to information that, before disclosure, is properly in the possession or knowledge of the party to whom such disclosure is made, or is public knowledge. The restrictions contained in this Stipulated Protective Order shall not apply to information that is, or after disclosure becomes, public knowledge other than by an act or omission of the party to whom such disclosure is made, or that is legitimately acquired from a source not subject to this Stipulated Protective Order.

         B. Production of Confidential Information

         1. All efforts by any party or witness in this matter to designate any information as "Confidential" shall be governed by the terms of this Stipulated Protective Order. The party by whom any disclosure is made is the "Disclosing Party" and the party to whom any disclosure is made is the "Receiving Party." By receiving any property designated as "Confidential" the Receiving Party agrees not to disclose, publish, disseminate, or use, other than as expressly permitted herein, any such property and will assure that all reasonable ...


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