Case Name: Intel x86 Microprocessor Cases (JCCP 4443)
Case No.: 1-05-CV-045077

Defendant Intel Corporation (“Intel”) has filed four separate Motions to Seal Documents in connection with its Opposition to Plaintiffs’ Motion for Class Certification. Intel’s Motions were scheduled to be heard before this Court on March 18, 2016. The four motions filed by Intel covered 39 separate exhibits and five redacted briefs. According to Intel’s moving papers, all of the materials were designated as Confidential Discovery Material either by Intel, Plaintiffs, or one of the numerous third parties. The four Motions to Seal brought by Intel are set forth below:

1. Motion to Seal Portions of Intel’s Opposition to Plaintiffs’ Motion for Class Certification (“Opposition”); Portions of Intel’s Memorandum of Points and Authorities in Support of its Motion to Exclude Testimony of Plaintiffs’ Expert Cristian Santesteban and Certain Exhibits of the Declaration of Nitin Jindal in Support of Intel’s Opposition to Motion for Class Certification and Motion to Exclude Santesteban’s Testimony.

2. Motion to Seal Portions of Intel’s Reply Brief in support of Intel’s Motion to Exclude Testimony of Plaintiffs’ Expert Santesteban and Exhibits thereto.

3. Motion to Seal Portions of Intel’s Opposition to Plaintiffs’ Motion to Exclude Certain Analyses of Intel’s Expert David P. Kaplan and Exhibits to the Declaration of Megan Lin in Support of Intel’s Expert David Kaplan.

4. Motion to Seal Portions of Intel’s Surreply in Opposition to Plaintiffs’ Motion for Class Certification and Exhibits to the Declaration of Nitin Jindal supporting Surreply.

This Court’s tentative decision dated March 17, 2016, indicated that Intel had not made a satisfactory showing that Intel had an overriding interest in the confidentiality of the documents that would overcome the right of public access. Specifically, Intel argued that the documents were subject to a Protective Order deeming them to be confidential and that disclosure of the documents would potentially result in a competitive injury to Intel or certain third parties while bestowing no real benefit to the public if disclosed. The Court continued the Motions to April 15, 2016 and requested further briefing and/or Declarations which set for the actual facts demonstrating why there was an overriding interest in maintaining the confidentiality of the documents which would overcome the public’s right to access those documents.
In response to this Court’s tentative decision, Intel submitted the Supplemental Declaration of Gregory Wells in Support of Intel Corporation’s Motions to File Papers Under Seal. According to the Wells Declaration, Intel is now withdrawing its Motion to Seal as to some documents, and has proposed limited redactions to other documents which would expand the amount of publicly available material in this case. The documents which Intel seeks to seal describe the details of non-public prices and discounts provided to Intel’s customers. According to the Wells Declaration, the prices were heavily negotiated in a confidential setting and each of Intel’s customers are not privy to the negotiations Intel has with its other customers. The overriding interest for maintaining the privacy and confidentiality of these documents relates directly to Intel’s pricing strategies and it would be competitively harmful to Intel in OEM’s knew all of Intel’s prices for other OEM’s. In addition, the Declaration indicates that revealing Intel’s pricing and negotiation strategies would cause competitive harm to Intel because it would provide competitors with an unfair advantage when competing against Intel for the sales of microprocessors. The Court has reviewed the proposed redacted Exhibits F, G and H. The Court is satisfied that Intel has established an overriding interest supporting by sufficient facts in the Well’s Declaration to warrant sealing of those unredacted Exhibits.

The Wells Declaration also indicates that Intel has proposed limited redactions to Santesteban’s revised report and two excerpts from Santesteban’s deposition which are attached as Exhibits I and J to the Declaration. The Court has reviewed Exhibits I and J which purportedly contain details of non-public prices and discounts provided to Intel’s customers and specific terms of its deals with its customers. It also contains information from third parties who have not granted permission for Intel to file their materials publicly. The Court is satisfied that there is an overriding interest which supports sealing this material and the unredacted portions of Exhibits I and J are ordered sealed.

The final category of documents subject to Intel’s Motions to Seal addressed in the Wells Declaration concerns certain documents and depositions containing third party materials. The Wells Declaration indicates that Circuit City and CompUSA have gone out of business and any reference to them in the Kaplan report is no longer confidential and subject to sealing. As to other third parties, the Declaration indicates that Intel reached out to the remaining third parties (Acer/Gateway, Costco, Dell, HP, Lenovo, Toshiba, Wal-Mart, and AMD) to provide the Court with additional information and details regarding why their confidential information meets the standard for sealing. According to the Declaration, Best Buy and Wal-Mart no longer consider the information as confidential and Intel is withdrawing the Motion to Seal as to those third parties. With respect to the remaining third parties (Acer, AMD, Del, HP and Lenovo and Toshiba), the Court will order the information on these third parties sealed in light of Intel’s representation that they contain sensitive and non-public pricing information.

The Opinion and Order in the Federal Case which denied class certification was filed under seal and this Court will seal that documents as it contains the same type of confidential and sensitive information which has been discussed above.

Intel is instructed to prepare an Order which addresses the specific changes made to its original motions. The Order should itemize those documents that are being redacted and subject to sealing.