ROBERT N. BLOCK, Magistrate Judge.
WHEREAS, the above-captioned action (the "Action") is likely to involve discovery of documents, materials, testimony, and other information containing or disclosing trade secrets and other confidential and proprietary commercial information of the parties to the Action (i.e., plaintiff and counter-defendant DinDon Food Corporation and defendants and counterclaimants Conica Gift Trust and Pacific Kidz) as well as third-parties who may be subpoenaed or otherwise requested to provide documents, materials, testimony, and other information, including confidential and commercially sensitive information relating to product and packaging designs, marketing plans, business strategies, goods and services capabilities, sales, costs, pricing, profitability, customers, suppliers, and other business and financial data or information, which, if disclosed other than as specified herein, will pose a significant risk of injury to the legitimate business interests of the disclosing Party or third-parties;
WHEREAS, this Order is necessary to protect the legitimate business interests of the disclosing parties or third-parties in the foregoing information, and good cause exists for the entry of this Order; and
WHEREAS, the parties to this Action have stipulated to the entry, and agreed to be bound by the terms, of this Order,
NOW, THERFORE, IN LIGHT OF THE FOREGOING, pursuant to Rule 26(c) of the Federal Rules of Civil Procedure ("Rule[s]") and the stipulation and agreement of the Parties, IT IS HEREBY ORDERED that if, in the course of these proceedings, any party or third-party has the occasion to disclose information deemed in good faith to constitute confidential proprietary information of the type contemplated by Rule 26(c), through formal discovery or otherwise, the following procedures shall be employed and the following restrictions and protocols shall govern the handling of documents, depositions, pleadings, exhibits, and all other information exchanged by the parties in the Action, or provided by or obtained from third parties:
Disclosure and discovery activities in the Action are likely to involve production of confidential, proprietary, or private information for which special protection from public disclosure and use for any purpose other than prosecuting and defending the Action may be warranted. The parties acknowledge that this Order does not confer blanket protections on all disclosures or responses to discovery and that the protection it affords from public disclosure and use extends only to the limited information or items that are entitled to confidential treatment under the applicable legal principles. The parties further acknowledge that, as set forth in Section 11.3 below, this Order does not entitle them to file confidential information under seal; instead, Local Rule 79-5 sets forth the procedures that shall be followed and the standards that will be applied when a Party seeks permission from the Court to file material under seal.
2.1 "Challenging Party" shall mean a Party or Non-Party (as those terms are defined below) that challenges the designation of information or items under this Order.
2.2 "CONFIDENTIAL" information or items shall mean information (regardless of how it is generated, stored, or maintained) or tangible things that qualify for protection under Rule 26(c).
2.3 "Designating Party" shall mean a Party or Non-Party that designates information or items that it produces in the Action as "CONFIDENTIAL" or "HIGHLY CONFIDENTIAL-OUTSIDE COUNSELS' EYES ONLY."
2.4 "Disclosure or Discovery Material" shall mean all items or information, regardless of the medium or manner in which it is generated, stored, or maintained (including, among other things, documents, testimony, transcripts, and tangible things), that are produced or generated in disclosures, whether formal or informal, or responses to discovery in this Action.
2.5 "Expert" shall mean a person with specialized knowledge or experience in a matter pertinent to the litigation of the Action that has been retained by a Party or its counsel to serve as an expert witness or as a consultant in this Action.
2.6 "HIGHLY CONFIDENTIAL-OUTSIDE COUNSELS' EYES ONLY" information or items shall mean extremely sensitive confidential information or items, for which the disclosure of the information or items to another Party or Non-Party would create a substantial risk of serious harm that could not be avoided by less restrictive means.
2.7 "In-House Counsel" shall mean attorneys who are employees of a Party to this Action (but it does not include outside counsel of record or any other outside counsel).
2.8 "Non-Party" shall mean any natural person, partnership, corporation, association, or other legal entity not named as a Party to the Action.
2.9 "Outside Counsel of Record" shall mean attorneys who are not employees of a Party to this Action, but are retained to represent or advise a Party to this Action and have appeared in this Action on behalf of that Party or are affiliated with a law firm that has appeared on behalf of that Party.
2.10 "Party" shall mean any party to this Action, including all of its officers, directors, employees, consultants, retained experts, and Outside Counsel of Record (and their support staffs).
2.11 "Producing Party" shall mean a Party or Non-Party that produces Disclosure or Discovery Material in the Action.
2.12 "Professional Vendors" shall mean persons or entities that provide litigation support services (e.g., photocopying, videotaping, translating, preparing exhibits or demonstrations, and organizing, storing, or retrieving data in any form or medium) and their employees and subcontractors.
2.13 "Protected Material" shall mean any Disclosure or Discovery Material that is designated as "CONFIDENTIAL" or "HIGHLY CONFIDENTIAL-OUTSIDE COUNSELS' EYES ONLY."
2.14 "Receiving Party" shall mean a Party that receives Disclosure or Discovery Material from a Producing Party.
3.1 The protections conferred by this Order cover Protected Material as well as (a) any confidential information copied or extracted from Protected Material, (b) all copies, excerpts, summaries, or compilations of Protected Material, and (c) any deposition testimony, conversations, or presentations by Parties or their Outside Counsel of Record that reveal Protected Material.
3.2 The protections conferred by this Order do not cover the following information: (a) any information that is in the public domain at the time of disclosure to a Receiving Party or becomes part of the public domain after its disclosure to a Receiving Party as a result of public disclosure not involving a violation of this Order, including becoming part of the public record through trial or otherwise, and (b) any information known to the Receiving Party prior to the disclosure or obtained by the Receiving Party after the disclosure from a source who obtained the information lawfully and under no obligation of confidentiality to the Designating Party.
Even after final disposition of this litigation, the confidentiality obligations imposed by this Order shall remain in effect until a Designating Party agrees otherwise in writing or a court order directs otherwise. Final disposition is deemed to be the later of (a) dismissal of all claims and defenses in this Action, with or without prejudice, and (b) final judgment after the completion and exhaustion of all appeals, rehearings, remands, trials, or reviews of this Action, including the time limits for filing any motions or applications for extension of time pursuant to applicable law.
5.1 Each Party or Non-Party that designates information or items for protection under this Order shall take care to limit any such designation to specific material that qualifies under the appropriate standards. To the extent it is practical to do so, the Designating Party shall designate for protection only those parts of material, documents, items, or oral or written communications that qualify, so that other portions of the material, documents, items, or communications for which protection is not warranted are not swept unjustifiably within the ambit of this Order.
5.2 If it comes to a Designating Party's attention that information or items that it designated for protection do not qualify for protection at all or do not qualify for the level of protection initially asserted, that Designating Party shall promptly notify the other Party that it is withdrawing the mistaken designation.
5.3 Except as otherwise provided in this Order (see, e.g., Section 5.3(b) below), or as otherwise stipulated or ordered, Disclosure or Discovery Material that qualifies for protection under this Order shall be clearly so designated before the material is disclosed or produced. Designation in conformity with this Order requires:
5.4 If timely corrected, an inadvertent failure to designate qualified information or items does not, standing alone, waive the Designating Party's right to secure protection under this Order for such material. Upon timely correction of a designation, the Receiving Party shall make reasonable efforts to ensure that the material is treated in accordance with the provisions of this Order.
6.1 Any Party or Non-Party may challenge a designation of confidentiality at any time. Unless a prompt challenge to a Designating Party's confidentiality designation is necessary to avoid foreseeable, substantial unfairness, unnecessary economic burdens, or a significant disruption or delay of the litigation, a Party does not waive its right to challenge a confidentiality designation by electing not to mount a challenge promptly after the original designation is disclosed.
6.2 The Challenging Party shall initiate the dispute resolution process by providing written notice of each designation it is challenging and describing the basis for each challenge. The Parties shall attempt to resolve each challenge in good faith and shall begin the process by conferring within seven (7) days of the date of service of notice. In conferring, the Challenging Party shall explain the basis for its belief that the confidentiality designation was not proper and shall give the Designating Party an opportunity to review the designated material, to reconsider the circumstances, and, if no change in designation is offered, to explain the basis for the chosen designation. The Parties shall comply with the requirements set forth in Local Rule 37-1 before seeking judicial intervention.
6.3 Prior to seeking judicial assistance, the Parties shall comply with Local Rule 37-1. If the Parties cannot resolve a challenge without court assistance, the Parties shall comply with Local Rule 37-2 and draft a joint stipulation pursuant to Local Rule 37-2.1. The Challenging Party may file a motion challenging a confidentiality designation at any time if there is good cause for doing so, including a challenge to the designation of a deposition transcript or any portions thereof. The burden of persuasion in any such challenge proceeding shall be on the Designating Party. All Parties shall continue to afford the material in question the level of protection to which it is entitled under the Producing Party's designation until the Court rules on the challenge. Any Party may challenge the Producing Party's designation on an ex parte basis if justice so requires without complying with Sections 6.2 and 6.3.
7.1 A Receiving Party may use Protected Material that is disclosed or produced by another Party or by a Non-Party in connection with this Action only for prosecuting, defending, or attempting to settle this litigation. Such Protected Material may be disclosed only to the categories of persons and under the conditions described in this Order. When the litigation has been terminated, a Receiving Party shall comply with the provisions of Section 12 below (FINAL DISPOSITION). Protected Material shall be stored and maintained by a Receiving Party at a location and in a secure manner, consistent with this Order, that ensures that access is limited to the persons authorized under this Order.
7.2 Unless otherwise ordered by the Court or permitted in writing by the Designating Party, a Receiving Party may disclose any information or item designated "CONFIDENTIAL" only to:
7.3 Unless otherwise ordered by the Court or permitted in writing by the Designating Party, a Receiving Party may disclose any information or item designated of "HIGHLY CONFIDENTIAL-OUTSIDE COUNSELS' EYES ONLY" only to:
7.4 The following procedures shall apply for approving or objecting to the disclosure of Protected Material to an Expert:
8.1 If a Party is served with a subpoena or a court order issued in other litigation that compels disclosure of any information or items designated in this Action as "CONFIDENTIAL" or "HIGHLY CONFIDENTIAL-OUTSIDE COUNSELS' EYES ONLY," that Party shall:
9.1 The terms of this Order are applicable to information produced by a Non-Party in this Action and designated as "CONFIDENTIAL" or "HIGHLY CONFIDENTIAL-OUTSIDE COUNSELS' EYES ONLY." Such information produced by Non-Parties in connection with this litigation is protected by the remedies and relief provided by this Order. Nothing in these provisions should be construed as prohibiting a Non-Party from seeking additional protections.
9.2 In the event that a Party is required by a valid discovery request to produce a Non-Party's confidential information in its possession and the Party is subject to an agreement with the Non-Party not to produce the Non-Party's confidential information, then the Party shall:
9.3 If the Non-Party fails to object or seek a protective order from this Court within fourteen (14) days of receiving the notice and accompanying information, the Receiving Party may produce the Non-Party's confidential information responsive to the discovery request. If the Non-Party timely seeks a protective order, the Receiving Party shall not produce any information in its possession or control that is subject to the confidentiality agreement with the Non-Party before a determination by the Court. Absent a court order to the contrary, the Non-Party shall bear the burden and expense of seeking protection in this Court of its Protected Material.
10.1 If a Receiving Party learns that, by inadvertence or otherwise, it has disclosed Protected Material to any person or in any circumstance not authorized under this Order, the Receiving Party shall immediately:
11.1 Right to Further Relief. Nothing in this Order abridges the right of any person to seek its modification by the Court in the future.
11.2 Right to Assert Other Objections. By stipulating to the entry of this Order no Party waives any right it otherwise would have to object to disclosing or producing any information or item on any ground not addressed in this Order. Similarly, no Party waives any right to object on any ground to use in evidence of any of the material covered by this Order.
11.3 Filing Protected Material. In accordance with Local Rule 79-5.1, if any papers to be filed with the Court contain information and/or documents that have been designated as "CONFIDENTIAL" or "HIGHLY CONFIDENTIAL-OUTSIDE COUNSELS' EYES ONLY," the proposed filing shall be accompanied by an application to file the papers or the portion thereof containing the designated information or documents (if such portion is segregable) under seal; and the application shall be directed to the judge to whom the papers are directed. For motions, the Parties shall publicly file a redacted version of the motion and supporting papers.
11.4 Limitations on Advice. Nothing in this Order shall bar or otherwise restrict Outside Counsel of Record from rendering advice to his or her client with respect to this Action and, in the course thereof, relying in a general way upon his or her examination of Protected Material produced or exchanged in this Action; provided, however, that in rendering such advice and in otherwise communicating with his or her client, the attorney shall not disclose the contents of Protected Material produced by any other Party or Non-Party.
12.1 Within sixty (60) days after the final disposition of this Action, as defined in Section 4, each Receiving Party shall return all Protected Material to the Producing Party or destroy such material. As used in this subdivision, "all Protected Material" includes all copies, abstracts, compilations, summaries, and any other format reproducing or capturing any of the Protected Material. Whether the Protected Material is returned or destroyed, the Receiving Party shall submit a written certification to the Producing Party (and, if not the same person or entity, to the Designating Party) by the 60-day deadline that:
I, the undersigned, hereby certify that I have read and am familiar with the terms of the Stipulated Protective Order (the "Order") entered in the above-captioned action, a copy of which is attached. I agree to be bound by the terms of that Order, and I agree that I will use CONFIDENTIAL INFORMATION and HIGHLY CONFIDENTIAL— OUTSIDE COUNSELS' EYES ONLY INFORMATION only in a manner authorized by the Order, and only to directly assist counsel in the litigation of this Action, and for no other purpose. I agree that I will not disclose or discuss CONFIDENTIAL INFORMATION or HIGHLY CONFIDENTIAL—OUTSIDE COUNSELS' EYES ONLY INFORMATION to with or anyone, except as authorized by the terms of the Order.
I further understand my obligation to return and/or destroy documents as set forth in Section 12 of the Order and agree to be bound thereto. I hereby submit to the jurisdiction of the Court for the purpose of ensuring compliance with this Order.
