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Keywords

defendantlitigationdiscoverymotionpatentcivil procedure
discoverymotiontrade secret

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American Standard Inc. v. Pfizer Inc., 828 F.2d 734, 56 USLW 2163, 3 U.S.P.Q.2d 1817

Facts

American Standard owns U.S. Patent No. 3,605,123, which relates to a bone implant. The company does not manufacture the implant but has licensed others to do so. American Standard sued Biomet and others for patent infringement, seeking discovery of Biomet's confidential sales data and other information. Biomet moved for a protective order to limit the scope of discovery, claiming that the requested information was confidential and that its disclosure would harm its competitive position. The district court granted Biomet's motion for a protective order and denied American Standard's motion to compel discovery.

Issue

Did the district court abuse its discretion in granting Biomet's motion for a protective order and denying American Standard's motion to compel discovery?

Whether the district court abused its discretion in granting Biomet's motion for a protective order and denying American Standard's motion to compel discovery of confidential information not related to the utility of porous-coated bone implants for bone ingrowth.

Rule

Under the Federal Rules of Civil Procedure, a party seeking a protective order must demonstrate that the information sought is confidential and that its disclosure might be harmful. If the party seeking the protective order meets this burden, the burden shifts to the party seeking discovery to show that the information is relevant and necessary to its case.

One seeking protective order under rule relating to trade secrets or other confidential research, development, or commercial information must establish that information sought is confidential. Fed.Rules Civ.Proc.Rule 26(c)(7), 28 U.S.C.A.

Analysis

The district court found that Biomet established that the information sought was confidential and that its disclosure could harm Biomet due to the competitive nature of the orthopedic implant industry. American Standard failed to demonstrate a sufficient relationship between the claimed invention and the confidential sales data, and the court concluded that the requested information was not necessary for American Standard to prepare its case, as similar information was available from other defendants.

Conclusion

The court affirmed the district court's decision, holding that it did not abuse its discretion in granting Biomet's motion for a protective order and denying American Standard's motion to compel discovery.

Affirmed.

Who won?

Biomet prevailed in this case as the court upheld its motion for a protective order, thereby preventing the disclosure of its confidential sales data and other sensitive information. The court found that Biomet had adequately demonstrated that the information sought by American Standard was confidential and that its disclosure could cause harm to Biomet's competitive standing in the market. The court also noted that American Standard failed to establish a need for the confidential information, as similar data was available from other parties involved in the litigation.

Biomet prevailed in this case as the court upheld its motion for a protective order, thereby preventing the disclosure of its confidential sales data and other sensitive information.

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