Static Media LLC v. Leader Accessories LLC, No. 21-2303 (Fed. Cir. 2022)
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Static sued Leader in Wisconsin for infringing its D400 design patent. The parties entered into a court-approved protective order, under which they could designate certain material produced during discovery as “Confidential,” to be used solely for the purpose of the litigation, with disclosure limited to certain people. Outside independent persons retained for the Wisconsin action were bound by the protective order because they were obligated to sign a “Written Assurance.” After the parties agreed to the protective order, Static sent a cease-and-desist letter to OJ, also alleging infringement of the D400 patent. OJ’s attorney, Hecht, contacted Leader’s attorney, Lee; the parties entered into a Joint Defense Agreement.
Static sued OJ for infringement in Florida. Lee sent Hecht copies of the protective order and Written Assurance from the Wisconsin action. Hecht signed and returned the Written Assurance to Lee. Lee emailed Hecht deposition transcripts and related exhibits from the Wisconsin action; only a few pages were marked confidential, reminding Hecht to “adhere to the protective order.” During settlement negotiations in the Florida action, Hecht improperly used royalty agreements he obtained from Lee to assess a settlement proposal.
The court found Leader and Lee in civil contempt for violating the protective order and ordered Leader to pay Static’s attorney’s fees and a $1,000 sanction. The Federal Circuit reversed. The disclosure was not a clear violation of the protective order.
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