Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-casd-3_06-cv-01952/USCOURTS-casd-3_06-cv-01952-5/pdf.json

Nature of Suit Code: 890
Nature of Suit: Other Statutory Actions
Cause of Action: 15:0045 Federal Trade Commission Act

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UNITED STATES DISTRICT COURT 

SOUTHERN DISTRICT OF CALIFORNIA 

FEDERAL TRADE COMMISSION,) CASE NO. 06cv1952 JLS (JMA) 

 ) 

 Plaintiff, ) 

 ) 

v. ) PROTECTIVE ORDER 

 ) 

NEOVI, INC., et al., ) 

 ) 

 Defendants. ) 

_________________________)

This Stipulated Protective Order Regarding Confidential 

Information (“Protective Order”) between Plaintiff Federal Trade 

Commission and Defendants Neovi, Inc, G7 Productivity Systems, Inc., 

James M. Danforth, and Thomas Villwock, and non-party Paypal, by and 

through their counsel of record, is made in the above-captioned 

action with respect to the following recitals: 

 1. Plaintiff has requested documents from PayPal in the aboveentitled action (the "action"). PayPal intends to produce 

documents, declarations or other discovery materials which contain 

confidential and proprietary information, and can be produced only 

upon assurance that they and the information and material contained 

therein will be treated as confidential by the parties to the action. 

2. The parties seek to establish procedures, above and beyond 

those provided for by this Court’s Order Regarding Confidentiality of 

Materials Produced in Discovery or for the Purposes of Settlement 

(“Court’s Confidentiality Order”) (Docket No. 36) previously entered 

Case 3:06-cv-01952-JLS-JMA Document 77 Filed 01/25/08 Page 1 of 8
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in the above-captioned action, that will protect all confidential 

information while expediting the discovery process, limiting the 

necessity for objections or subsequent motions seeking to limit 

discovery and facilitating the disposition by the Court of any 

disputes that may arise in connection with discovery.1

 3. PayPal may mark various of such documents as "CONFIDENTIAL" 

that contain trade secrets, proprietary commercial information, or 

any other materials considered confidential under Fed. R. Civ. P. 

26(c)(7) or Section 6(f) of the FTC Act, 14 U.S.C. Section 46(f).

The documents so marked, the contents thereof and any excerpts or 

parts thereof produced by PayPal in this action pursuant to discovery 

(hereinafter the "Confidential Document or Documents"), shall be 

treated as confidential in accordance with this Stipulation by the 

parties to this Stipulation and their respective attorneys. Unless 

otherwise ordered by the Court upon good cause shown or agreed to in 

writing by PayPal, the parties to this Stipulation and their 

respective attorneys shall not permit the exhibition or disclosure of 

any Confidential Document, its contents or any parts thereof, except 

to the following persons (hereafter the "qualified persons"): 

 a. The parties to this Stipulation and their respective 

counsel;

1 To the extent there is any inconsistency in the procedures or 

the amount of protection accorded to PayPal’s sensitive and 

confidential financial and business information, and trade secret 

information between this Protective Order and the Court’s 

Confidentiality Order, the parties to this Protective Order intend 

that this Protective Order will govern. 

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 b. Employees of counsel for the parties to this 

Stipulation, to the extent necessary for the preparation and 

prosecution of the action and trial or settlement; 

 c. FTC employees; 

 d. Experts, independent contractors, consultants or 

advisors, who are retained by the parties to this Stipulation and 

their respective counsel, to the extent necessary for preparation and 

prosecution of the action and trial or settlement; 

 e. Witnesses or prospective witnesses, either for 

deposition or trial, to the extent necessary for preparation and 

prosecution of the action and trial or settlement; 

f. Stenographic reporters who are involved in depositions 

or any Court hearings or proceedings; 

g. The Court and its officers. 

 4. No copies shall be made of any Confidential Document except 

as necessary for preparation and prosecution of the action at trial 

or settlement. Any and all Confidential Documents shall be kept in 

secure, segregated facilities and access to those facilities shall be 

permitted only to qualified persons. Counsel for each party shall 

take such steps as they reasonably believe are appropriate to advise 

those persons employed or retained in clerical, stenographic or other 

ministerial functions of the restrictions upon dissemination of 

Confidential Documents provided by this Stipulation. 

 5. Each person, (other than counsel for the parties to this 

Stipulation and persons employed or retained solely in clerical, 

stenographic or other ministerial functions, FTC employees, the Court 

and its officers) to whom any disclosure or exhibition of any 

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Confidential Document is made shall be provided with a copy of this 

Stipulation and shall execute an undertaking binding them to the 

terms of this Stipulation. Each such executed undertaking shall be 

maintained by the counsel who has obtained it. 

 6. The Confidential Documents shall be used only for the 

preparation and prosecution of this action and trial or settlement.

No person to whom disclosure of any Confidential Document or the 

contents thereof is made shall disclose such Confidential Document or 

the contents thereof to any other person other than pursuant to the 

terms of this Stipulation. 

7. Any persons receiving Confidential Information shall not 

reveal or discuss such information to or with any person who is not 

entitled to receive such information, except as set forth herein. If 

a party or any of its representatives, including counsel, 

inadvertently discloses any Confidential Information to persons who 

are not authorized to use or possess such information, the party 

shall provide written notice of the disclosure to the party whose 

information was inadvertently disclosed. If a party has actual 

knowledge that Confidential Information is being used or possessed by 

a person not authorized to use or possess that information, 

regardless of how the information was disclosed or obtained by such 

person, the party shall provide immediate written notice of the 

unauthorized use or possession to the party whose information is 

being used or possessed.

 8. Any document containing any summary or recitation of any 

part of the content of a Confidential Document also shall be deemed 

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to be a Confidential Document and subject to all of the protections 

and restrictions in this Stipulation. 

 9. Unless the prior written consent of PayPal is obtained, any 

document filed with the Court making reference to the contents of any 

Confidential Document shall be filed under seal in the same manner as 

a Confidential Document and shall be treated in the same manner as a 

Confidential Document. 

 (a) This Stipulation shall not preclude any party from 

using in the course of deposition or submitting to the Court for any 

purpose, including trial, any Confidential Document provided that the 

confidentiality of such document and its contents is protected and 

maintained pursuant to subparagraphs (b), (c), and (d) of this 

paragraph.

 (b) Subject to public policy, and further Court order, no 

confidential document shall be filed in the public record or under 

seal, and the Court shall not be required to take any action as to 

the documents, without separate prior order by the Judge before whom 

the hearing or proceedings will take place, after application by the 

party that wishes to place a confidential document into the record 

with appropriate notice to the party that marked the document 

confidential and the opposing counsel. Said written notice to the 

party that marked the document as confidential shall be given at 

least ten (10) days prior to any Court proceeding regarding the 

opening of any said Confidential Document that has been filed under 

seal. If the Court grants a party permission to file an item under 

seal, a duplicate disclosing all nonconfidential information, if any, 

shall be filed and made part of the public record. The item may be 

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redacted to eliminate Confidential Material from the document. The 

document shall be titled to show that it corresponds to an item filed 

under seal, e.g., "Redacted Copy of Sealed Declaration of John Smith 

in Support of Motion for Summary Judgment." The sealed and redacted 

documents shall be filed simultaneously. Copies of such Confidential 

Documents that are served on counsel for the parties to this 

Stipulation shall be similarly identified and shall be maintained as 

Confidential Documents under this Stipulation. 

 (c) When Confidential Documents are revealed in any 

deposition, hearing, other proceeding, or trial, counsel for the 

parties shall make arrangements to insure that only qualified persons 

are present during the revelation of such information. 

 (d) When any Confidential Document is incorporated in a 

transcript of a deposition, hearing, or other proceeding, 

arrangements shall be made with the reporter(s) attending such 

proceeding to bind the portions designated CONFIDENTIAL - ATTORNEYS 

ONLY of such transcript separately and label such portions as 

CONFIDENTIAL - ATTORNEYS ONLY. 

10. Upon settlement or final judgment in this action, all 

Confidential Documents, including copies thereof, and all summaries 

or recitations of any parts thereof shall be delivered to PayPal, 

ATTN: Adam R. Sand. All Confidential Documents and all summaries or 

recitations of any parts thereof which have been introduced into 

evidence in this action shall be withdrawn and likewise delivered to 

counsel for PayPal. Provided, however, that the FTC shall retain, 

return, or destroy documents in accordance with the provisions of 

Rule 4.12 of the FTC’s Rules of Practice, 16 C.F.R. Section 4.12. 

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 11. This Stipulation shall remain in effect for the duration of 

the litigation unless terminated by stipulation executed by counsel 

of record for the parties and PayPal or pursuant to Court Order. The 

provisions of this Stipulation insofar as they restrict the 

communication, treatment, and use of Confidential Documents shall 

continue to be binding after the termination of this action, unless 

the Court orders otherwise. 

 12. This Stipulation shall not abrogate or diminish any 

contractual, statutory, or other legal obligation or right of any 

party with respect to the Confidential Documents and the information 

contained therein. The fact that any Confidential Document is 

disclosed or produced in discovery or trial herein shall not be 

construed as a waiver in any other context or proceeding before any 

court, agency, or tribunal as evidence of whether such document or 

the contents thereof is or is not confidential or proprietary. 

//

//

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 13. Nothing in this Protective Order shall impose any 

restrictions on the use or disclosure by the FTC of Confidential 

Material as provided by: (1) the FTC’s Rules of Practice and any 

cases construing them; Sections 6(f) and 21 of the Federal Trade 

Commission Act and any cases so construing them; and (3) any other 

legal obligation imposed upon the FTC. 

Dated: Federal Trade Commission 

 By: 

 Deborah Matties, 

 Arturo DeCastro 

 Russell Deitch 

 Attorneys for Plaintiff 

Dated: PayPal 

 By: 

 Adam R. Sand 

 Attorney for PayPal 

GOOD CAUSE EXISTING THEREFORE, IT IS ORDERED. 

Dated: January 25, 2008 _______________________________ 

 Jan M. Adler 

 United States Magistrate Judge 

_______________________________

Jan M. Adler

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