Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-azd-2_04-cv-00400/USCOURTS-azd-2_04-cv-00400-8/pdf.json

Nature of Suit Code: 830
Nature of Suit: Patent
Cause of Action: 28:2201 Declaratory Judgment

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IN THE UNITED STATES DISTRICT COURT FOR THE 

DISTRICT OF ARIZONA 

HYPERCOM CORPORATION, 

Plaintiff, 

vs. 

VERVE L.L.C., and OMRON 

CORPORATION, 

Defendants. 

Civil Action No. CV 04-0400 PHX PGR 

PROTECTIVE ORDER FOR THE 

PROTECTION OF CONFIDENTIAL 

INFORMATION 

The Court, having considered the parties’ Stipulation for Entry of Protective Order 

for the Protection of Confidential Information and Trade Secrets, and finding good cause, 

hereby enters the following Protective Order pursuant to Rule 26(c)(7), Fed.R.Civ.P., to 

protect information produced or revealed during discovery in this matter that the parties 

identify as containing trade secrets and confidential research, development, or commercial 

information. 

I. FINDING OF GOOD CAUSE

The parties agree that a protective order is necessary to facilitate the disclosure of 

confidential documents during the course of discovery related to this action and Civil 

Action No. CV-05-365-PHX-FJM, and to govern use in this action of discovery produced 

in other cases between Verve, LLC and Hypercom Corporation produced pursuant to a 

protective order (collectively referred to as the “Litigation”). The Court finds that good 

cause has been shown for the entry of a protective order governing the access, use and 

Case 2:04-cv-00400-PGR Document 119 Filed 05/15/06 Page 1 of 12
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disclosure of materials that have and will be produced in the course of discovery in this 

action, and to facilitate use of confidential information produced in other cases which may 

be used in this action. Specifically, the Court finds that good cause exists to designate as 

confidential the following categories of documents and information: trade secrets and 

confidential research, development, or commercial information exchanged during 

discovery, including confidential financial information that has not been disclosed in 

filings with the Securities and Exchange Commission, source code, software 

specifications, software manuals, software requirements documents, internal software 

tools, software design documents. Unrestricted access to forward looking financial 

information beyond that disclosed in filings with the Security and Exchange Commission 

would prejudice a party’s efforts to comply with regulations promulgated by the 

Commission. Unrestricted access to a party’s source code, software specifications, 

software manuals, software requirements documents, internal software tools, and software 

design documents by another party, including employees who are involved in software 

development, would allow the receiving party to duplicate the other party’s trade secrets, 

resulting in a competitive disadvantage to the producing party. 

No party may designate information or materials as confidential pursuant to this 

Order unless the designating party has a good faith basis for claiming that the information 

or materials so designated actually contain trade secrets and confidential research, 

development, or commercial information. 

II. TERMS OF PROTECTIVE ORDER

IT IS ORDERED that documents and other discovery materials designated as 

Confidential Information in accordance with the provisions of this Order shall be treated 

as set forth in the following paragraphs: 

A. Definitions

1. “Confidential Information” refers to information that contains trade secrets 

and confidential research, development, or commercial information (whether it be a 

document, information contained in a document, information revealed during a 

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deposition, information revealed in an interrogatory answer, or otherwise), and which the 

supplying party designates (or, in the case of information provided by a third-party 

information that the third-party designates), as “Confidential.” 

2. The term “person” means all natural persons, corporations, limited liability 

companies, unincorporated associations, partnerships, joint ventures, municipal 

corporations and governmental entities or other artificial persons of any kind no matter 

how identified or how organized. 

3. The term “documents” shall have the full meanings ascribed to it under Rule 

34 of the Federal Rules of Civil Procedure. 

4. The term “testimony” includes all depositions, declarations, affidavits, or 

discovery responses given pursuant to the Federal Rules of Civil Procedure. 

B. Designation of Information as Confidential

1. A party producing a document or copy thereof (or, in the case of a document 

or copy provided by a third-party, the third-party or a party hereto), or a party or thirdparty producing source code, may designate such document or source code as 

Confidential Information by marking each page containing such information with a legend 

containing the following language or substantially similar language: “ConfidentialSubject to Protective Order.” Documents produced during proceedings before the 

International Trade Commission in Investigation 337-TA-524 may be used in this action, 

and any confidential markings placed on such documents pursuant to the administrative 

protective order in that investigation may be removed and replaced by the above language. 

2. A party’s or third-party’s designation of documents or things as containing 

Confidential Information shall be subject to independent judicial review as provided 

herein. 

3. Where it is impracticable to affix the notice specified above, any producing 

party or, in the case of documents produced by a third-party, the third-party or a party 

hereto may, by written notice to counsel in this action, or by a statement on the record 

during a deposition, designate any or all of the documents, information or materials 

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produced by that party or a third-party, or any or all categories of the documents, 

information or materials produced by that party or a third-party, as Confidential 

Information pursuant to this Order. Such designation shall have the same effect as if each 

individual item so designated actually was marked as set forth above. 

4. Any party may designate as Confidential Information any unpublished 

materials that it has previously produced or exchanged without such designation or that 

have been produced by another party or a third-party and were not designated as 

Confidential Information at the time produced, if the failure to designate the materials as 

Confidential Information at the time of production was inadvertent or a mistake, and the 

materials are not otherwise available to the public. Any third-party may designate as 

Confidential Information any materials that it has previously produced without such 

designation, if the failure to so designate at the time of production was inadvertent or a 

mistake, and the materials are not otherwise available to the public. Notice of such postproduction designation shall be given in writing to all parties to whom such materials have 

previously been furnished. 

It shall be the responsibility of the producing party to prepare new copies of the 

materials bearing the legend “Confidential- Subject to Protective Order,” and then send 

those correctly designated copies to all of the parties as soon as practicable. Such a 

corrected designation shall have the same effect as if each individual item so designated 

actually was marked as set forth above, provided that no one shall be found to have 

violated this Order because of any use or disclosure of such materials that occurred prior 

to receipt of written notice that the materials were inadvertently produced, or produced by 

mistake, without the required designation. Upon receipt of the correctly designated 

materials, each party shall destroy or return to the producing party all copies of the 

inadvertently or mistakenly produced materials. 

5. No person shall use documents and testimony designated as Confidential 

Information except for the purpose of the Litigation, absent order of the Court or written 

agreement of counsel on behalf of the party or third-party who designated the information 

Case 2:04-cv-00400-PGR Document 119 Filed 05/15/06 Page 4 of 12
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as Confidential Information. No person shall disclose, make available, or communicate 

documents and testimony designated Confidential Information, or summaries of such 

information or documents, to any other person except the following: 

a. the attorneys for Hypercom Corporation, the attorneys for Omron 

Corporation, the attorneys for the counter-defendants in Civil Action 

No. CV-05-365-PHX-FJM, clerical personnel working for such 

attorneys, and other personnel who have been employed by or 

retained by such attorneys in connection with the Litigation, 

including paralegals, law clerks, court reporters, secretaries or 

shorthand reporters; 

b. in-house attorneys who are employees of a party, and secretaries and 

support staff directly employed by such in house attorneys; 

c. officers and employees of the parties whose assistance is required in 

the preparation of the Litigation for trial or who must make business 

decisions in connection with the conduct or settlement of the 

Litigation, and who must have access to the materials to render 

effective assistance or to make such decisions; 

d. independent expert witnesses and independent expert consultants 

who have been retained in connection with the Litigation by the 

attorneys for plaintiff and defendant for purposes of discovery or trial 

preparation, including clerical personnel directly employed by or 

retained by such expert witnesses or consultants; and, 

e. the Court and Court personnel, including court reporters engaged in 

proceedings in the Litigation. 

6. Each officer and employee of a party, and any expert witness or consultant, 

must first be advised of the terms of this Order and shall sign a copy of an 

Acknowledgment of Protective Order, a copy of which is attached hereto as Exhibit “A,” 

acknowledging and accepting the terms of this Order, submitting to the jurisdiction of the 

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Court for the purposes of enforcement of this Order, and agreeing that such Confidential 

Information shall be used solely for the purposes of the Litigation and not for any other 

purpose or any other case, before any Confidential Information may be disclosed to them. 

Any such person who refuses to execute Exhibit “A” and/or refuses to agree to be bound 

by this Order shall not be provided with Confidential Information. It is unnecessary for 

counsel of record or clerical and other personnel directly employed by or retained by them 

in connection with the Litigation, including paralegals, law clerks, court reporters, 

secretaries or shorthand reporters, or Court personnel, to execute a copy of Exhibit “A” 

hereto. 

7. If Confidential Information is used during a deposition related to the 

Litigation, the court reporter shall affix an appropriate legend to the cover page of the 

deposition and each copy of the deposition. After a deposition is transcribed, a party or a 

witness may designate specific pages of the deposition transcript, containing confidential 

research, development, or commercial information, as Confidential Information by 

informing counsel for all other parties to this action in writing within thirty (30) days after 

receipt of the transcript, as to the specific pages deemed confidential and thereafter such 

pages shall be protected under the terms of this Order. Until the expiration of the thirtyday period following receipt of a transcript, the entire transcript shall be treated as 

confidential and protected under this Order. Upon receipt of a notice designating pages as 

confidential, any party in possession of copies of such designated transcript shall affix the 

appropriate legend thereto. 

8. Nothing herein shall be construed to affect in any way the admissibility of 

any document, testimony or other evidence at trial, nor shall this Order have any effect on 

claims of privilege. 

C. Protection of Confidential Information 

1. Nothing herein shall prevent a party from investigating the facts presented 

in a deposition. Without limiting any other provision of this Order, where deposition 

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testimony is designated Confidential Information, the actual transcript of such confidential 

testimony and designated exhibits shall not be shown or provided to any person who is not 

entitled to receive Confidential Information under the terms of this Order, with the 

exception of the deponent. 

2. In the event that documents are filed with the Court, it is the Court’s policy, 

given the strong presumption in favor of public access to court records in civil cases and 

the Court’s limited storage space for sealed documents, not to allow parties to file entire 

documents under seal simply because some portion of the document may contain 

confidential information. In order to ensure that the parties use the least restrictive means 

possible to protect confidential information contained in documents filed with the Court, 

the Court will require the following: 

Filing a Document Designated as Confidential Information 

by the Party That Is Filing the Document 

a. Any document filed with the Court that was designated as 

Confidential Information by the submitting party, including 

memoranda of points and authorities, deposition transcripts, and 

exhibits, that reference Confidential Information, shall have deleted 

from the original filed documents only, just those specific sentences 

or paragraphs containing the Confidential Information. A blank space 

shall be inserted at the site of the deletion in the original document 

which shall contain the notation that confidential information has 

been deleted and filed separately under seal. 

b. The pages containing those deleted sentences or paragraphs shall be 

filed separately in a sealed envelope that is endorsed with the caption 

of the case, the caption of the document, and the notation: “Contains 

Confidential Information. Subject To Protective Order - To Be 

Opened Only As Directed by The Court”. The pages filed under seal 

shall be accompanied by a properly labeled CD-ROM containing a 

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.pdf of the sealed documents in compliance with the current 

provisions of the Court’s Case Management/Electronic Case Filing 

Administrative Policies and Procedures. 

c. The Judge’s copy of the filed documents shall not contain any 

deletions, but the sentences and paragraphs deleted from the original 

document shall be double underlined on the Judge’s copy and a 

notation placed on those pages stating that Confidential Information 

is contained therein. 

Filing a Document Designated as Confidential Information 

by Another Party 

d. If a party wishes to file a document that has been designated as 

Confidential Information by another party, including memoranda of 

points and authorities, deposition transcripts, and exhibits, that 

reference information designated as Confidential Information by 

another party, the submitting party shall comply with the above 

procedures for documents filed with the Court that were designated 

as Confidential Information by the submitting party to the extent that 

the submitting party can identify the specific sentences or paragraphs 

containing such Confidential Information. Otherwise, the submitting 

party is hereby given leave to temporarily file the entire document in 

a sealed envelope that is endorsed with the caption of the case, the 

caption of the document, and the notation: “Contains Confidential 

Information. Subject to Temporary Protective Order Pending Specific 

Identification Of Confidential Information By The Party Claiming 

Confidentiality”, accompanied by a properly labeled CD-ROM 

containing a .pdf of the sealed documents in compliance with the 

current provisions of the Court’s Case Management/Electronic Case 

Filing Administrative Policies and Procedures. 

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e. In the event that the submitting party temporarily files documents 

under seal which contain information designated as Confidential 

Information by another party, the submitting party shall give notice 

of such temporary filing to the other party who designated the 

information as Confidential Information, and such other party must, 

within 10 days thereafter, file with the Court a public version of the 

original filed documents that shall have deleted from the original 

filed documents only, just those specific sentences or paragraphs 

containing the Confidential Information, together with a declaration 

establishing that the deleted information is Confidential Information. 

A blank space shall be inserted at the site of the deletion in the 

original document which shall contain the notation that confidential 

information has been deleted and filed separately under seal. If the 

designating party does not file the materials required by this Order, 

the document or proposed filing will be made part of the public 

record. 

f. In addition, the designating party shall file separately in a sealed 

envelope the pages containing those deleted sentences or paragraphs 

and the envelope shall be endorsed with the caption of the case, the 

caption of the document, and the notation: “Contains Confidential 

Information. Subject To Protective Order - To Be Opened Only As 

Directed by The Court”. The pages filed under seal shall be 

accompanied by a properly labeled CD-ROM containing a .pdf of the 

sealed documents in compliance with the current provisions of the 

Court’s Case Management/Electronic Case Filing Administrative 

Policies and Procedures. 

g. The Judge’s copy of the filed documents shall not contain any 

deletions, but the sentences and paragraphs deleted from the original 

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document shall be double underlined on the Judge’s copy and a 

notation placed on those pages stating that Confidential Information 

is contained therein. 

3. The Clerk of this Court is directed to maintain under seal any documents 

filed in this action which have been filed under seal in accordance with the provisions of 

this Order. In the case of documents that are temporarily filed under seal, and which do 

not become a part of the public record, the Clerk of this Court may return the documents 

to the filing party or dispose of the documents, and shall substitute the materials filed by 

the designating party in accordance with the terms of this Order. 

4. This Order shall not govern the treatment of Confidential Information at 

trial. Any protection to be given to Confidential Information at trial shall be addressed 

separately by the Court in the pretrial order, by separate order, or otherwise. 

5. No person shall attend portions of depositions involving testimony about 

Confidential Information unless such person is authorized to receive that Confidential 

Information under the terms of this Order and is in compliance with the terms of this 

Order. 

6. Any party receiving Confidential Information shall use it solely for purposes 

of the Litigation. 

7. Within sixty (60) days of the final disposition of the Litigation, copies of all 

documents, information or materials containing any information designated as 

Confidential Information which have previously been exchanged, produced and/or 

disseminated to any person shall be retrieved by the disseminating person and returned to 

the producing party, except as otherwise agreed by the parties or provided in any 

subsequent Court order or judgment. 

8. Nothing shall prevent use or disclosure beyond the terms of this Order if the 

party or third-party designating the information as Confidential Information consents to 

such use or disclosure. 

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III. CHALLENGES TO DESIGNATIONS OF CONFIDENTIALITY

1. A party shall not be obligated to challenge the propriety of a designation of 

Confidential Information at the time made, and a failure to do so shall not preclude a 

subsequent challenge thereto. 

2. Any person may challenge the designation of any documents filed under 

seal with the Court or which have been designated as Confidential Information. If any 

party or third-party contests the confidential nature of any documents filed under seal or 

designated as Confidential Information pursuant to this Order, the party contesting 

confidentiality shall give written notice to the designating party setting forth with 

reasonable specificity the materials which the contesting party contends is not 

confidential, and such parties shall make a sincere effort to satisfactorily resolve the issue. 

If the parties are unable after personal consultation and sincere efforts to resolve the 

matter, the challenging party may file a motion to unseal the documents or the designating 

party may file a motion for an Order confirming the confidentiality of the documents. The 

burden shall be on the designating party to show good cause for the documents in question 

remaining under seal. 

IV. LIMITED EFFECT OF ORDER

1. Nothing herein shall impose any restrictions on the use or disclosure by a 

party of material obtained by such party independent of discovery in this action, whether 

or not such material is also obtained through discovery in this action, or from disclosing 

its own Confidential Information as it deems appropriate. 

2. This Order shall be without prejudice to the right of the parties to present a 

motion to the Court under Federal Rule of Civil Procedure 26(c) for a separate protective 

order as to any particular document or information, including restrictions differing from 

those as specified herein. This Order shall not be deemed to prejudice the parties in any 

way in any future application for modification of this Order. 

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V. MODIFICATIONS TO THE ORDER

Any party may apply at any time to the Court for a modification of or an exception 

to this Order. The parties may at any time by stipulation agree to a modification or an 

exception to this Order. 

DATED this 15th day of May, 2006. 

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