Beijing Meishe Network Technology Co., Ltd. v. TikTok Inc.
3:23-cv-06012
N.D. Cal.Dec 16, 2024Background
- Beijing Meishe Network Technology Co., Ltd. (Meishe) is the plaintiff in a trade secrets and copyright litigation against TikTok and others.
- Defendants sought discovery related to Xin Ao-Te/China Digital Video (XAT/CDV), a nonparty entity alleged to be a Meishe affiliate that developed the relevant source code and employed a key individual.
- XAT is Meishe’s largest shareholder (owning ~30%) and previously provided employees and technological resources to Meishe; Meishe was spun out from an XAT division.
- Defendants have repeatedly requested documents and information related to XAT from Meishe, asserting Meishe has control or influence over XAT; Meishe has only partially complied and argues XAT is a nonparty beyond its control.
- A Texas court previously ordered Meishe to produce any written requests to XAT for documents (and responses), but denied—without prejudice—requests to compel Meishe to obtain all XAT documents.
- This order arises from unresolved disputes over whether Meishe must produce more XAT-related documents, describe its relationship with XAT, and testify about the scope of its ability to obtain XAT documents.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Must Meishe produce all written requests to XAT and XAT’s responses? | Already produced all written/WeChat requests, nothing further exists. | Meishe has not clearly produced transmittal/WeChat records; must produce all. | Motion GRANTED IN PART: Meishe must provide all such records or declarations describing efforts to obtain them. |
| Must Meishe obtain and produce XAT documents based on "control"? | No current legal/practical control over XAT; only partial ownership and separate entities. | Meishe’s past ability to get and produce XAT documents shows "control." | Motion DENIED WITHOUT PREJUDICE: Defendants did not meet burden to show "control." |
| Must Meishe describe its legal and corporate relationship with XAT? | Has produced some documents showing relationship; further responses are unnecessary. | Has not substantively described relationship; did not comply with discovery requests. | Motion GRANTED IN PART: Meishe must serve declarations describing full relationship history and produce relevant documents, except litigation strategy/financial interest. |
| Must Meishe identify who has input into litigation strategy or financial interest? | Already denied by Texas court, and that ruling is final. | Seek further responses regarding parties with input/interest in litigation. | Motion DENIED IN PART: Meishe need not provide further responses on these subparts. |
Key Cases Cited
- United States v. Int’l Union of Petroleum and Indus. Workers, AFL-CIO, 870 F.2d 1450 (9th Cir. 1989) (burden for establishing "control" over documents for discovery lies with the requesting party)
- In re Citric Acid Litig., 191 F.3d 1090 (9th Cir. 1999) (control requires party has legal right to obtain documents from nonparty, not mere practical ability)
- Genentech, Inc. v. Trs. of the Univ. of Pa., 2011 U.S. Dist. LEXIS 128526 (N.D. Cal. Nov. 7, 2011) (subsidiary's relationship with parent does not necessarily confer discovery control)
- Dugan v. Lloyds TSB Bank, PLC, 2013 U.S. Dist. LEXIS 126369 (N.D. Cal. Sept. 4, 2013) (subsidiary must have legal right to obtain documents from parent before being compelled)
