I
I
~
.
15 4
14
11 :
10
1
5
:
6
9
16
17
12
13
20
18
21
19
26
25
24
23
22
25,
DOE
APPLE
i'
Esq.
in
on
for
Department
regularly inclusive,
a
ofO'Melveny
protective
1,
vs.
The an
unknown
motion
for
14,
order
hearing
Hon.
of
&
individual;
blocking
non-parties
INC.
COMPUTER,
Plaintiff,
Myers
SUPERIOR
Defendants
James
on
.
March
represented
P. a
subpoena
Kleinberg,
Monish
4t
COURT,
2005.
Plaintiff
Bhatia;
issued
and Does 2-
The
presiding.
)
) ) )
)
)
)
)
)
)
)
)
)
)
-1-
matter
by
ORDER
Case
Kasper
Apple.
COUNTY SANTA OF
Plaintiff
was
No.:
George
CLARA
Thomas
Jade,
AFTER
heard
BY
l-Q4-CY-032178
Apple
F
Riley, and
on
Chi
E.
Superior cj
HEARING
Jason
Computer
M!R
the
Moore
(ENDORSED)
Esq.
IAI
STATE OFCALIFORNIA
civil
O'Grady
rOR~E
1
COUnly
~
and
ill,
tJ!
discovery
20~
("Apple")
David
of
Esq.
u~ve OtliC1lrlClerk
,
Santa
.
("movants")
CIa
of
Eberhart,
D
ra
calendar
DEPUTy
came
:,
,~
j
~
1
Tomlinson
&
Zisko,
Richard
R.
Wiebe,
Esq.,
Terry
Gross,
Esq.
of
Gross
&
Belski,land
Kurt
2 3 4 5 6
Opsahl, Esq" of Electronic Frontier FoundatioI1representedthe movants,2 Although not required to issue opinions or statementsof decision when decidu1gcaseson the motion calendar, Code of Civil Procedure §632, 4 Witkin, California Procedure (4th ed, 1997) Trial, §306, p.461, the Court is doing so here becauseit believes it may be helpful to counsel and the parties to do so.
7
8 9 10
II
I. LIMITS
RULING
OF
This motion is about discovery; namely, a single subpoena served by Apple on Nfox. The order of this Court does not go beyond the questions necessaryto deten11ine this motion seeking a protective order against that single subpoena,and it cannot and should not be read or interpreted more broadly. The Court makes no finding as to the ultimate melits of Apple's
12
clai1)1s, any defenses thoseclaims.Thoseissues or to remainfor another
13 ll.BACKGROUND
THIS
day,
15
14
A.
The
16 17
Apple filed its co\uplaint on December 13,2004 alleging that unnamed individuals or entities ("Does I through 25") had leaked specific, trade secret infonnation about new Apple That infonnation
for GarageBand, and PowerPage.
18 productsto severalonline websites, including AppleInsider
19 was published by these sites and regarded a FireWire audio
Litigation
20
codenamed
c,
Asteroid"
or
"Q7."
On
December
14,
2004
Judge
interface
William
Elfving
of
this
21
granted
Apple's
application
to
take
expedited
document
discovery.
On
February
4,2005
Court
22
is not counselof recordin this case, at his requestthe Court allowed him to participatein d1c but hearing
counsel for Apple did not object. Mr. Gross is counsel of record in another, reccntly filed action by
23
I
Mr.
24
by
Apple which may raisesimilar issues. 25
26
2 On March 3,2005 Department14 of the Cow'twhich i$ assigncd civil discoverycalendar, the postedits telephonic
tentative ruling in this case, which denied moving parties' motion for a protective order. In accordance with Court's usual practice in tIlis Departmcnt, a reasoned opinion wu not included with the tentative ruling. By timely d\e
notifying
telephone;
Gross
Apple
and
the
Court
of
their
opposition
to
the
tentative
ruling
all
parties
propcrly
appeared
for
hearing
the
B.
next
morning.
-2.
the
26 15 13 10
25 23 19 17
24
21
20
6
2
22 16
9 8 1 5 4 3
7
18 14 12
protocol("IP") Product relating confidential information, Court
11
4
as
values
subpoena,
violations
disclosing
Some
even
granted
might
of
It (d) (c) (a)
The
To
(b)
All
a to
,
and
casual
great
is
and all all the all
of their
date,
all
documen~
refer apparent
movants
source.
California
and
images~
documents communications
documents
Product
Apple's
the address(es),
significance.
sources
to
student Nfox
has
the
moving
Specifically
that
brought
subpoenaed
moving
has relating
including
("Disclosing
request
law, as
of
this
received
identifying
parties not
well
that
and
partic~
On neither
the
discovery,
to
objected
to
from
issue e-mail
as
the photographs,
Apple
instant
permit
the
Nfox.com
have
the
as
from
one Person(s)"),
the
"bloggers."
or
knows)
any
identity
benefits
address(es);
no
to
has
hand motion to
federal
or
specific
limited
individual
any
right sent
the
sought
for
is
of
there
sketches)
DiscJosing
of
The
rife subpoenas
.3to
privilege
to
e~mail
seeking
any
as
including
discovery
Cali
received from or sent to any Disclosing person(s).
any
site
anonymous
the
it
with
is
or
person
is,
the
fomi
www.dictiOTlarvoreference.comdefines
Disclosing
individuals
following
messages
schematics
Nfox subpoena, no discovery is currently outstanding.
calls
complexities
a
nor
movants'
Person(s)
protective
a's
true
on
directed
or
the
into
"shield
any
entity
speech.
name(s))
California
infonnation~ that
Person(s)
question
who
grounds
claim
and relating
at
order
who
may
law."
and
N°fox,
pl-ovided
renderings
address(es),
to
supplied
restrictions.
identify
blocking
issues
shield
relating
"free
to
and,
the
November 22, November 23) and November 26, 2004. These documents include:
the
email
infonnation
speech"
and
other
law
Product;
the
of
information
the
to
internet
competing
the
bar
provider for PowerPage. Apple is seeking the identities of the source or sources for this
On
the
service
subpoena.3 Movants claim to be '~oumalists.'.4 On that basis they claim a privilege from
regarding an unreleased Apple product code-named "Asteroid" or "Q97" (the "Product"), including po stings that appeared on PowerPage.com (the "Web site") on November 19)
blog
) Although askedto makean "advisory ruling" on other,unserved subpoenas, Court decljne~ do so. the to
than Product the which, the
line diary; a per50nalcmonologicallog ofrhoughtspublishedon a webpage;also calledWeb1og, Web log."
Apple's position is the acquisition and dissemination of the alleged trade secrets are
as
the
"on
1
2
otherhand,thereis the undisputed right to protectintel1ectual propertyas expressed California in
civil and criminal law. Before analyzing and deciding these issues the Court reiterates:
3
This
is
a
discovery
issue.
The
discovery
statute
provides,
in
part,
4
(a)
Unless
otherwise
limited
by
order
of
the
court
in
accordance
with
that:
this
article,
party may obtain discoveryregardinganymatter,not privileged,that is relevantto the subject matterinvolved in the pendingaction or to the detennination any motion madein that actioJ:l, of if the Jnattereither is itself admissiblein evidence appears or reasonably calculatedto leadto the 6 discoveryof admissibleevidence.Discoverymay relateto the claim or defense the pal1y of 7 seekingdiscoveryor of any otherparty to the action. Discoverymay be obtainedof the identity andlocation of personshavingknowledgeof any discoverable matter,aswell as of the existence, S description,nature,custody,condition,andlocationof any document, tangib1e thing, or land or otherproperty.Codeof Civil Procedure 2017(a) § 9 Discover is given a broad reach in California courts; at the same time the courts have y 5
10 11
12
ftequently balanced competing interests in this regard, for example, iJ:ldividllal privacy rights.
See Witkin, Summary ofColifornia Law, (9th ed. 1988) Constitutional Law §§ 456-473, pages
13
642-660.
But,
as
discussed
infra,
the
Court
does
find
that
Apple
has
made
out
aprimafacie
any
14 15 16
that the information at issue constituted proprietary trade secretsand that it has taken adequate stepsby way ofintemal investigations to justify further, external discovery as it seekshere. See,
e.g.,
Declarations
of
Robin
Zonic,
"
4-8.
Al
Ortiz)
Jr.,
~
17
B.
Trade
18
Apple 11as maintained that the infoxmation published by the moving parties qualifies as 19
trade secrets under Califomia law. That law is found primarily in two statutes: the Unifonn
20
Secrets
(the "UTSA")
2-3.
adopted in 1985,5 and Penal Code
Trade
Secrets
Act,
Civil
Code
§§
3426
et.
21
22
23
§499c.Thosestatutes provide,in pertinentpart:
Civil Code § 3426.1. Defmitions:
***
24 2S
26
~As with other laws titled "Uniform,.. thereare differences betweenCalifornia's versionof this taw and the original version,but thosedifferencesarenot of consequence here.The UTSA supplanted California'g commonlaw of trade $ecrets derivedfrom the Restatement Torts 2d. of
seq.)
-4-
case
-
1 (b) "Misappropriation" means:
2 (1) Acquisition of a trade secret of another by a person who knows or has reason to 3 that the trade secret was acquired by improper means; know
(2) Disclosure or use of a trade secret of another without express or implied consent by a 4
5
person who;
(A) Used improper means to acquire knowledge of the trade secret; (B) At the time of disclosure or use, knew or had reason to know that or his or her
knowledge
6
of the trade secret was:
(i) Derived from or through a person who had utilized improper means to acquire
7' 8 9
10
it'
(ii) Acquired under circumstancesgiving rise to a duty to maintain its secrecy or
limit its use; or (iii) Derived from or through a person who owed a duty to the person seeking relief to maintain its secrecy or limit its use; or
(C) Before a material change of his or her position, knew or had reason to that it was a trade secret and that lmowledge of it had been acquired by accident or mistake. know
11
***
(d) "Trade secret"meansinfomtation,including a formula, pattern,compilation,program,
device, method, technique, Or process)
12
13
(1) Derives
14 generally known to the public
independent
or to other
that:
economic
persons who
value, actual or potential,
can obtain economic
or
from not being
value from its
disclosure
or use; and
15
(2) Is the subjectof efforts that arereasonable underthe circumstances to
16
17
maintain its secrecy.
Penal Code § 499c:
18
***
(9)"Tradesecret" meanS information, including formula, a pattern, 19 compilation,program,device,method,technique,or process, that:
20. (A) Derives independent economic value, actual or potential, from beIng generally known to the public or to other persons who can obtain economic value from not
21
disclosure or use; and
(B) Is the subjectof efforts that arereasonable underthe circumstances to 22 maintainits secrecy, (b) Every personis guilty of theft who, with intent to depriveor withhold the connol of a
23 trade secret from its owner, or with an intent to appropriate a trade secret to his or her own use
its
24 25
26
to the use of another, does any of the following~
(1) Steals,takes,carriesaway,or useswithout authorization,a tradesecret, (2) Fraudulentlyappropriates article representing tradesecretentrusted any a to
(3) Having unlawfully obtained access to the article, without authority makes or
him
or
causes be madea copy of any article representing tradesecret. to a
her.
-5-
i
or
-
1
***
to anypresentor fonner agent,employee servantof another,a benefit as an inducement! or bribe or rewardfor conveying,deliveringor otherwisemakingavailablean article representing trade a secretownedby his or her presentor formerprincipal, employeror master!to any personnot authorized the ownerto receiveor acquirethe tradesecretand everypresentor fonner agent, by employee! servant,who solicits, accepts, or receives takesa benefit asan inducement! or bribe or rewardfor conveyulg,deliveringor otherwisemaking availablean article representing trade a secretownedby his or her present fonner principal, employeror master,to anypersonnot or authorized the ownerto receiveor acquirethe tradesecret,shall be punishedby imprisonment by in the stateprison, or in a countyjail not exceeding year,or by a fine not exceedingfive one thousand dollars ($ 5.000),or by both that fine andimprisonment. (d) In a prosecution a violation of this section,it shall be no defense for that the person returnedor intendedto retum the arocle. Thesestatutes reflect this state!sstrongcommitmentto the protectionof proprietary
(C) Every person who promises, offers or gives, or conspires to promise or offer to give,
2 3 4 5 6 7 8 9 10
business information. SeeIntegral Dev. Corp. v. Weissenbach (2002) 99 Ca!. App. 4th576, 11 12
13 rights.
14
that trade secret laws apply to everyone regardless of their status, title or chosen profession. The As discussed infra, the United States and Califomja Supreme Courts have underscored
Magnec()mp Corp. v. AtheneCo. (1989)209 Cal. App. 3d 526. The statutes also supportthe compellinginterestof disclosure which may, in the propercivil case,outweighFirst Amendment
15
California Legislature has not carved out any exception to these statutes for journalists, 16
bloggers
or anyone else. 17 For these reasonsthe Court has carefully reviewed the showing made by Apple to date. 18
The posting by Mr. O'Grady contained an exact copy of a detailed drawing of 19
by Apple. The drawing was taken from a confidential set of slides clearly labeled cc Apple
1\
Asteroid"
Need-
created
20 to-Know Confidential.!'
In addition~
technical
specifications
were
copied
verbatim
from
the
21
confidential slide set and posted on the online site. These postings by Mr. O'Grady were spread 22
over threedays,November19,22 and23,2004. The Court is convincedby Apple's 23 24 25 26 presentation, including the materialsproducedin camerathat this action haspassed the thresholds necessary discoveryto proceed. for
.6.
.
1 C. Joumalists and privilege 2 Much ofmovants'
papers
and
argument
is
a
recitation
of
the
obvious:
the
telms
3
importance
of
the
First
Amendment
and
the
value
of
free
speech
which
this
Court
4
This
principle
was
explored
in
Ford
V$.
Lane,
(E.D,
Mich.,
1999)
67
F.
Supp.
2d
745,
rccognizes.
5
"The First Amendment
protects
freedom
of speech and freedom
of the press by
6
providing,
'Congress
shall
make
no
law.
.
.
abridging
the
freedom
of
speecb"
OT
of
the
751:
press.
and
.
1 8
9 prevent
'The First Amendment applies to speechon the Internet. Rel1O American Civil Libertie.)' v. Union, (1997) 521 U.S. 844. The primary purpose of the guaranteeof freedom of the press is to
prior restraints on publication. Near v. Minnesota, (1931) 283 U.S. 697. Even a
10
temporary restraint on pure speech is improper absent the !'most compelling
circumstances,"
In
11 theMatter of ProvidenceJournal Co., (1st Cir. 1986)820 F.2d 1342,1351.The First
12 Amendment applies to the States via the Fourteenth Amendment. Near at 707",
13
14 Pentagon
The broad parameters of the prior restraint doctrine were further explained in the
Papers case, New York Times Co. v. Um'tedStates, (1971) 403 U.S. 713. There, the
15
federal
government
sought
to
enjoin
The
New
York
Times
and
The
Washington
Post
16
publishing
a
classified
study
on
U.S.
policy-making
in
Vietnam.
The
Vietnam
conflict
from
17 ongoing,andthe govenunentarguedthat the publicationof the classifiedinformation might 18 damage national interest.The Court observed the that,because prior restrainton speech any is 19 presumptivelyinvalid underthe First Amendment, government the bore a heavy burdenof 20 showingajustification for the restraint.Finding that the government not met its burden,the had 21 Court deniedthe injunction.Id. at 714. 22 But the pendingmotion is not for injunctive relief againstanyoneand the Pentagon
23 Papers caseand similar authoritiesarenot on point. 24
25 analysis
First, the issueof prior restraintis not beforethe Court. The California Supreme Court's
in DVD Copy Control Association v. Bunner, (2003) 31 Cal. 4th 864 is of particular
26
value.
In
that
case,
in
which
defendant
was
represented
by
some
of
the
same
.7.
counsel
was
.
Yc",--4
22 3 2
21 19
20
18
17
16
15
14
13
12
11
10
1
5
26 8
2S
9
6
7
.
23
Id., prohibit Function: j mass 1 Function: jour.nal-ist 'Journalist" Vopper, protection during Branzburg sourceS Supreme injunctive create debate
24
OUr-DB a : at a audience person 881. a I argument. is Movants Similarly do legitimate courts (2001) noun nOun frustrated
taste
of
facts
or
public;
or
representing
Court
description
relief
of not
The
-Ism
v. engaged has
interest
the
Hayes,
have
from
532
allowed
Court
become
-
contend
privilege
the
which
public
by
movants,
of in
U. a
incidentally
(1972)
claim
events license
journaliSJn;
went
offering
S.
the
more necessarily
they interest
514,532
against
2 : a personwho keeps3. journal
of on
without
injunction
408
to
L~rivilege"
complicated
are
to
property
"The mere fact that DVD CCA's
e$pecially violate
U.S. note
enjoining
trade
in
journalists.
an
revealing
(indeed,
their
raises
attempt
665,691
that
to
secrets
criminallaws
6 The Merriam-Wcbstcr online dictionary states:
protection
:
issue. disclosure."
is
a "It
issues
speech
writer as
at the overstated
their
interpretation
They
is
the may
Counsel
parties something
-8or
variety
sources
of
in
to
editor
have
make
prior
order
the Supreme Court observed that
such
Id.,
trade
had
in
for
for
some
c ofinfonnation.
of this
this
restraint at
:
as secrets." done
of
to
a
the
writing
media 8840
news protect
claim
Penal
context.
a
link
moving
mystery
discovery,
Ultimately,
roedi1W1
not
designcd
has to
because
Code
[do,
a
a
Reporters present
legitimate
expanded.6
public
parties
at
as
b
Defining
§499c.
to :
883.
to
Id.
a
they
appeal
in how
writer
here
issue
admitted at
the
And,
and
Bartnicki property
seek
520);
free
But
to who
what ~
context
does
CWTent
their the
furthcr,
the
even
and
aims
this
is
"[T]he First Amendment does not
not
right,"
a v.
open
pQpular
at
of
if
a
1 a ; the collection and editing of news for presentation through the media b : thc public press c : an academic study concerned with the collection and editing of news or the managemcnt of a news medium
the
2 a : writing designedfQ{publicationin a newspaper magazine : writing characterized a direct presentation Qr b by
~
~
,
1 movantsarejournalists,this is not the equivaleDt of a freepass.Thejournalist's privilege is not
2
3
absolute. For example, joun1a)ists cannot refuse to disclose information when it relates to a
crime. As the Supreme Court in Bran.zburg stated:
4 5
6
"The preference for anonymity of those confidential informants involved in actual criroj.naJconductis presumably productof their desireto escape a criminal prosecution,andthis
preference, while understandable, is hardly deserving of constitutional protection." 408 U.S. at
7
691.
8
D.
The
Mitchell
9
The
balancing
of
standard
interests
between
discovery
and
privilege
was
addressed
by
10
11
California Supreme Court in Mitchell v. Superior Court, (1984) 37 Cal. 3d 268,276. In that case,
at pages 279-84, the following five-part test was articulated for weigl1ing whether discovery
12 13 14 15 16
17
should be pennitted over an assertion of the Federal privilege: (I) "Nature of the litigation andwhetherthe reporteris a party:" Although not yet named as defendants, is certainlypossible"journalists" may be; it certainly Mr. O'Grady's declaration suggeststhis possibility. (2) "Does discovery sought go to the heart of plaintiffs claim~"
Without tbjs discovery Apple's case will be crippled, since it will not know the
18
defendants
upon whom
it should serve process.
19 20 21 22
(3)
"Have
other
sources
of
information
been
The moving parties maintain Apple should have done more investigating up to this point, including the unusual step of noticing the depositions of its own employees. But the Court is convinced) upon reviewing Apple's public and in camera materials that a thorough investigation
23 hasbeendoneand all alternativemeans havebeenexhausted.
24
exhausted?"
the
'1 !ii
;,
(4) "What is the public good served protectingthe misappropriation tradesecrets?" by of
2S 26
.9. j ,~_.,~...,~~4'"' II ,,
1. Movants
did not presenta persuasive reason "public good" andnever answered of the
as to why there was a true public bel1efit from disclosureSee Mitchell v.
2
Court's
3
Superior
inquiry
Court
at
283
and
DVD
Copy
Control
Association
v.
Bunner
at
4
(5) [Paraphrased] In the context of a detamation
case~ should the Cou11require the
5
plaintiff
to
make
aprimajacie
showing
of
6 7 8
9
This is not a defamation case, and movants do not believe this factor is pertinent. In any event, the Court finds that Apple has made aprimafacie caseof misappropriation and this is yet another reason to allow discovery.
E. The Shjeld Law
10 11 12
13
Easily overstated in its power, "[t]he description 'shield law' conjures up visions of broad protection and sweeping privilege. The California shield law, however, is unique in that it affords only limited protection. It does not create a privilege for newspeople, rather it provides
an
and jmmunity from being adjudged in contempt. This rather basic distinction has been misstated apparently misunderstood by members of the news media and our courts as well."
14
falsity?
883-85-
KSDO
15
Superior Court, (1982) 136 Cal. App. 3de 375,379-80.
16 17 terms:
18
California EvidenceCode §§ 1070(a) (b). citedby movants,arequite specific in their and
(a)
A
publisher,
editor,
reporter,
or
other
person
connected
with
or
employed
upon
newspaper, magazine, otherperiodicalpublication,or by a pressassociation wire service, or or 19 or any personwho hasbeenso connected employed,cannotbe adjudgedin contemptby a or 20 judicial, legislative,administrative body, or any otherbody having the power to issuesubpoenas, for refusingto disclose,in any proceeding definedin Section901,the sourceof any as 21 infonnation procuredwhile so connected employedfor publication in a newspaper, or magazine or otherperiodical publication,or for refusingto discloseanyunpublishedinfonnation obtained 22 or preparedin gathering, receivingor processing infom1ation communicationto the public. of for 23
24 a radio
(b) Nor cana radioor television news reporter otherperson or connected or employed with by
or television station, or any person who has been so connected or employed. be
adjudged in contempt for refusing to disclose the source of any information procured while so
25 connected or employed for news or news commentary puxposes on radio or television, or
so
refusing to disclose any unpublished information obtained or prepared in gathering~receiving or
26 processing infonIlation for communication to the public. of
,10"""'-""",,"",,'" . ' i
for
a
v.
I
.'
,
26
24
23
22 19 18 16
21 13 11
20
12
to
17
2
4
3
14
9 8 7 6 5 1
15
25
ill.
same containing definitions. are (1974) including: Branzburg, Copy true,
rears
8
7
fundamental
counsel.
and Control 418 The The The Finally, In At The The Based the is this the the U.S. As psychotherapist-patient legislative marital attorney-client executive 408 not infonnation reason: hearing Association on case, same such it transfonned U.S. 683 that is communications accepting worth AND information it there
An
The
experienced
ago.
undisputed
Carpenter
facts
Wall
v.
are
Street
United
CONCLUSION
691. privilege
language
that
the
is privilege,
Journal
stolen divulged
8
M(.
movants
States,
DISPOSITION
noting
v-
is
privilege,
by
Bunner,
no
O'Grady
for
and
property, of
reporter
license
its
(1987)
on
(1972)
that
present
falls
the
fom admitted
the
privilege,
its
privilege,
Evidence at
took
President
other
484
was
facts
hard squarely
conferred
874-88;
Gravel
or
just
purposes
die
U.S.
indicted
who
privileges
drive
presented,
to
infonnation
as
Evidence
19 Evidence
such
Code
.11receives any under
of
v. Bartnicki,
on
and (or
United
the
that
physical limitations.
anyone
convicted not)
§
United
have
the
956
and
it
Apple's
Code
it.9
Code
is
States,
wouJd UTSA
turned
v.
been
far
Therefore,
to
item,
Vopper,
for
§
States,
§ violate
from
allegations
1018.
around
981 408
similarly
trading be.
and
The physician-patient privilege, EvidenceCode§§ 997,999
such
clear
The
United U.S.
Penal
(2001)
valid
and
on the
as
information
that
inside
put
606
circumscribed,
a
Court
about
Code
States
criminal
laptop 532
it
Mr.
on
information
U.S.
used trade
the §499c
O'Grady
v.
computer
PowerPage
Nixon,
laws.
remains
514,
the
secrets
ajoumalist, reporter,blogger,or anythingelseneednot be decidedat this juncture for this
twenty
qualifies for relief from the subpoena the groundsadvanced.7 on Whetherhe fits the definition of
with essentiallyno addedvalue. As notedat the outset,the Court declinesto make"advisory rulings" with respect to Monish Bhatia,KasperJade,PowerPage, Applelmider asmovantsrequest. or
DVD
For example,docwnentss~t by a client to his/herlawyer do not become"privileged" simply by bcing sentto
the
site
!"}""
. 1 2 3 4 5 6
7 Apple and
chaI"gedword "fence" to describe parties who acted as go-betweensbetween the generator of the secret property and the recipients of it. Although specifically asked of colillsel for movants, the Court did not hear rebuttal to the analogy at the hearing. The bottom line is there is no exception or exemption in either the UrSA or the PenalCodefor journalists- howeverdefined- or anyone else. Much of the movants' papers and their oral argument stressedthe public's interest in
its products. Movants miss the point. Of course the public is interested in Apple. It is
8
9
a company which has achieved iconic status. One need no further proof of this point than to
review the personal history of movant O'Grady who, according to his own declaration "has been
10
working
with
Macintosh
computers
since
1985
...
co-founded
the
first
dedicated
Apple
11
Book User Group"..
in the United States.". has contributed articles to MacWEEK,
MacWorld,
12
MacAddict, MacPower(Japan) ...[and] written chapters for The MacinJosh Bible.
,.Movant's
13 OpeningBrief at 4: 8-20. Mr. O'Grady is far from alone:the public hashad, and continuesto 14 havea profound interestin gossipaboutApple. Thereforeit is not swprisiDgthat hundredsof 15 thousands "hits" on a websiteaboutApple haveandwill happen. an interested of But public is 16 not the sameasthepublic interest.
1.7 At the hearing the Court specifically asked what public interest was served by publishing
18
private,
proprietary
product
information
that
was
ostensibly
stolen
and
turned
over
to
those
Power
19
no
business
reason
for
getting
it.
Movants'
response
was
to
again
reiterate
the
20 2\
22
interest of the public in Apple, rather than justifying why citizens have a right to know the private and secret information of a business entity, be it Apple, H-P, a law firm, a newspaper,
Coca-Cola, a restaurant, or anyone else. Unlike the whistleblower who discloses a health, safety,
23
or
welfare
hazard
affecting
all,
or
the
government
employee
who
reveals
mismanagement
self-evident
24 25 26
worse by our public officials, the movants are doing nothing more than feeding the public's insatiable desire for information.
-12-
..I~
or
with
~
1
Indeed, a careful review ofmovants' opening and reply papers and the hearing transcript
2
3
revealsthat movantsneveradequately dealtwith the issueof the llltersectionof tradesecretsand
journalistic privilege. Movants' opening brief does not mention the UTSA or Penal Code § 499c.
I
4
The
reply
brief
states,
"This
motion
does
not
implicate
the
issue
of
whether
Apple's
trade
5
was
protected
speech;
..
."
Movants'
Opening
Brief,
at
7:
4-5.
When
skilled
lawyers
6 7
8
ignore an essential issuethat the Court specificallyinquiresabout,it sendsa message they have little to sayon the subject.And if, asmovantsargue,tradesecrets alwaysat risk - a "sieve," are
at
Penal Code? quoting Kewanee Oil v. Bicron, (1974) 416 U.S. 489~9010 -how does one explain the
9
explicit
statutory
language
of
the
UTSA
10
Let therebe no doubt:nothing in this orderis meantto precludethe exchange opinions of
and ideas, speculation about the future, or analysesof known facts. The rumor and opinion mills may continue to run at full speed. What underlies this decision is the publishing of inforr:nation
that at this early stage of the litigation fits squarely within the definition of trade secret. The right
I
11 12
13
I
14
to
keep
and
maintain
proprietary
information
and
as
such
is
a
right
which
the
California
15
16
and courts have long affinned and which is essential to the future oftecbnology and innovation
generally. The Court sees no reason to abandon that right even ifit were to assume, arguendo,
17
movants
are
"journalists"
as
they
claim
they
18
19 This order
For all of the above reasons the Court denies the movants' request for a protective order.
is stayed for seven cowt days to allow the parties, or any of them, to exercise their
20
appellate
21
IT
rights.
IS
SO
22
Dated:
March
ORDERED
LL
23 24 2S 26
10 Citing Kewaneeis interestingbecause that casethe United StatesSupreme in CO\n1 affinned the co-equalstatusof
trade secrets with patents as mcthodologieg for protecting proprietary information.
2005
are.
Honorable JamesP. Kleinberg Judge of the Superior Court
-13-
legislature
largely
secret