Vasudevan Software, Inc. v. MicroStrategy, Inc.
3:11-cv-06637
N.D. Cal.Mar 26, 2013Background
- VSI moves to seal portions of MicroStrategy’s reply and three attached exhibits.
- The court applies the strong presumption of public access to judicial records related to dispositive motions.
- To seal, the moving party must overcome with a particularized showing of compelling reasons under Kamakana and related rules.
- For nondispositive material, the lower good cause standard under Fed. R. Civ. P. 26(c) applies with particularized prejudice showing.
- Civil Local Rule 79-5 requires narrowly tailored sealing and specific procedural steps; blanket protective orders are insufficient.
- The court finds VSI failed to provide a particularized harm showing or narrow tailoring for the three exhibits and redactions.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether a strong presumption of access applies to the sealed materials | VSI argues for sealing based on confidential business information | MicroStrategy contends need to seal due to harm to business interests | Strong presumption applies; burden on sealant to show compelling reasons |
| Whether Exhibits 1–3 and redactions meet the particularized harm standard | Exhibits contain sensitive financial data and pricing terms warrant sealing | Redactions and disclosure could reveal pricing and revenues harms to business | Not sufficiently particularized; overbroad redactions; Exhibit 2 may seal pricing terms only |
Key Cases Cited
- Kamakana v. City and Cnty. of Honolulu, 447 F.3d 1172 (9th Cir. 2006) (strong presumption of disclosure for judicial records; compelling reasons required)
- In re Electronic Arts, Inc., 298 Fed. Appx. 568 (9th Cir. 2008) (limits on sealing; referenced for protective orders and redaction standards)
