### International Bus. Machs. Corp. v Global Foundries U.S. Inc. 2024 NY Slip Op 31066(U) March 29, 2024 Supreme Court, New York County Docket Number: Index No. 653625/2021 Judge: Joel M. Cohen Cases posted with a "30000" identifier, i.e., 2013 NY Slip

Op 30001(U), are republished from various New York State and local government sources, including the New

York State Unified Court System's eCourts Service. This opinion is uncorrected and not selected for official publication.NYSCEF DOC. NO. 1359



### SUPREME COURT OF THE STATE OF NEWYORK INDEX NO. 653625/2021 RECEIVED NYSCEF: 03/29/2024



### COUNTY OF NEWYORK: 

### COMMERCIAL DIVISION PART 03M

-----------------------------------------------------------------------------------X

INTERNATIONAL BUSINESS MACHINES CORPORATION,

- V - GLOBALFOUNDRIES U.S. INC., Plaintiff,

Defendant.

-----------------------------------------------------------------------------------X INDEX NO. 653625/2021 11/10/2023, MOTION DATE 11/10/2023
MOTION SEQ. NO. 048

DECISION+ ORDERON MOTION

The following e-filed documents, listed by NYSCEF document number (Motion 048) 1137, 1138, 1139, 1140, 1141, 1142, 1143, 1144, 1145, 1146, 1147, 1148, 1149, 1150, 1151, 1152, 1153, 1154, 1155, 1156, 1157, 1158, 1159, 1160, 1161, 1162, 1163, 1164, 1165, 1166, 1167, 1168, 1169, 1170, 1171, 1172, 1173, 1174, 1175, 1176, 1177, 1178, 1179, 1180, 1181, 1182, 1183, 1184, 1185, 1186, 1187, 1188, 1189, 1190, 1191, 1192, 1193, 1194, 1195, 1196, 1199, 1200, 1201, 1202, 1203, 1204, 1205, 1206, 1207, 1208, 1209, 1210, 1211, 1212, 1213, 1214, 1215, 1216, 1217, 1218, 1219, 1220, 1221, 1222, 1223, 1224, 1225, 1226, 1227, 1228, 1229, 1230, 1231, 1232, 1233, 1234, 1235, 1236, 1237, 1238, 1239, 1240, 1241, 1242, 1243, 1244, 1245, 1246, 1247, 1248, 1249, 1250, 1251, 1252, 1253, 1254, 1255, 1256, 1257, 1258, 1259, 1260, 1261, 1262, 1263, 1264, 1265, 1266, 1267, 1268, 1269, 1270, 1271, 1272, 1273, 1274, 1275, 1276, 1277, 1278, 1279, 1280, 1281, 1282, 1283, 1284, 1285, 1286, 1287, 1288, 1289, 1290, 1291, 1292, 1293, 1294, 1295, 1296, 1297, 1298, 1299, 1300, 1301, 1302, 1303, 1304, 1305, 1306, 1307, 1308, 1309, 1310, 1312, 1317, 1318, 1319, 1320, 1321, 1351 were read on this motion to SEAL/REDACT 

### Defendant GlobalFoundries U.S. Inc. ("GF") seeks an order sealing and/orredacting exhibits from thatwere filed in connection with this proceeding as NYSCEF DocumentNumbers 672,673,675,685,687,688,689,691,693,694,695,696,705,706,708,710,711,714,715, 717,718,719,722,724,726,730,744,745,746,749,750,752,755,760,763,764,779,781, 784,785,787,788,789,790,791,792,793,798,801,803,804,805,806,811,815,816,817, 820,826,827,828,830,831,832,833,834,835,840,841,842,843,846,848,849,850,851, 852,855,992,993,996,997, 1003, 1004, 1007, 1140, 1141, 1142, 1143, 1144, 1145, 1146, 1147, 1148, 1149, 1150, 1151, 1152, 1153, 1154, 1155, 1156, 1157, 1158, 1159, 1160, 1161, 1162, 1163, 1164, 1165, 1166, 1167, 1168, 1169, 1170, 1171, 1172, 1173, 1174, 1175, 1176,

653625/2021 INTERNATIONAL BUSINESS vs. GLOBALFOUNDRIES U.S. INC. Motion No. 047 048

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### [* 1]NYSCEF DOC. NO. 1359 INDEX NO. 653625/2021 RECEIVED NYSCEF: 03/29/2024
1177, 1178, 1179, 1180, 1181, 1182, 1183, 1184, 1185, 1186, 1187, 1188, 1189, 1190, 1191, 1192, 1193, 1194, 1195, 1196, 1199, 1200, 1201, 1202, 1203, 1204, 1205, 1206, 1207, 1208, 1209, 1210, 1211, 1212, 1213, 1214, 1215, 1216, 1217, 1218, 1219, 1220, 1221, 1222, 1223, 1224, and 1225. Forthe following reasons, the motion is granted in part. Pursuantto§ 216.1 (a) ofthe Uniform Rules for Trial Courts, this Court may seal afiling "upon awritten finding ofgood cause, which shall specify the grounds thereof. In determining whether good causehas been shown, the court shall considerthe interests ofthe public as well as ofthe parties" (22 NYCRR § 216.1 [a]). The Appellate Division has emphasizedthat "there is abroad presumption that the public is entitled to access tojudicial proceedings and court records" (Mosallem vBerenson, 76 AD3d 345, 348 [1stDept 2010]). "Sincethe right [ofpublic access to court proceedings] is of constitutional dimension, any order denying access mustbenarrowly tailoredto serve compellingobjectives, such as aneed for secrecy that outweighs the public's rightto access" (DancoLabs., Ltd v Chemical Works of GedeonRichter, Ltd, 274 AD2d 1, 6 [1st Dept 2000] [emphasis added]; seealso, e.g. Gryphon Dom. 

### VL LLCvAPPIntern. Fin. Co., B. V, 28 AD3d 322, 324 [1stDept 2006]). "Furthermore, because confidentiality is the exception and not the rule, 'the party seeking to seal court records has the burden to demonstrate compelling circumstances tojustifyrestricting public access"' (Maxim, Inc. vFeifer, 145 AD3d 516, 517 [1st Dept2016] [citations omitted]). The Court has reviewed the proposed sealing and/or targeted redactions in the documents filed as NYSCEF DocumentNumbers 672, 673, 685, 687, 688, 689, 691, 693, 694, 695, 696, 705,706,708,711,714,715,717,718,719,722,724,726,730,744,745,746,749,750,752, 755,779,784,785,787,788,789,790,791,792,793,803,804,805,806,811,815,816,827,

653625/2021 INTERNATIONAL BUSINESS vs. GLOBALFOUNDRIES U.S. INC. Motion No. 047 048

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### [* 2]NYSCEF DOC. NO. 1359 INDEX NO. 653625/2021 RECEIVED NYSCEF: 03/29/2024
828,830,831,832,834,835,840,841,849,850,851,852,855,992,993, 1003, 1004, 1141, 1142, 1143, 1144, 1145, 1146, 1147, 1148, 1149, 1150, 1151, 1152, 1154, 1155, 1156, 1157, 1158, 1159, 1160, 1161, 1162, 1163, 1164, 1165, 1166, 1167, 1168, 1169, 1170, 1174, 1176, 1177, 1178, 1179, 1180, 1181, 1182, 1183, 1184, 1187, 1188, 1189, 1190, 1191, 1192, 1193, 1196, 1199, 1200, 1201, 1202, 1204, 1205, 1206, 1207, 1212, 1213, 1214, 1215, 1216, 1219, 1220, 1222, 1223, 1224, and 1225, and finds that they comportwith the applicable sealing standard as laid out in Mosallem, 76 AD3d at 348-350, and its progeny, in that they contain sensitive and confidential business and financial information. Further, these Exhibits are properly sealed and/orredactedto the extent they contain nonpublic information about confidential contracts or agreements with non-parties (Mancheski v Gabelli Grp. Capital Partners, 39 AD3d499, 502 [2d Dept 2007] ["[D]isclosure couldimpinge on the privacy rights ofthirdparties who clearly are not litigants herein[.]"]). However, GF'sgeneralized assertions ofgood cause for the remaining Exhibits filed as document numbers 760,763,764,781,798,801,817,820,826,833,842,843,846,848,997, 1007, 1171, 1172, 1173, 1175, 1185, 1186, 1194, 1195, 1203, 1208, 1209, 1210, 1211, 1218, and 1221 do not establish a compellingjustification for the complete sealing that is proposed. While portions ofthese documents may include confidential business and financial information, the proposed sealing is not adequately explained orjustified. Thus, GF shouldpropose andjustify targetedredactions that satisfythe requirements of22 NYCRR § 216 [a] and applicable case law. Any subsequentmotion seeking to address the above concerns should adhere to this Part's SealingPractices andProcedures (see https://www.nycourts.gov/LegacyPDFS/courts/comdiv/NY/PDFs/part3-sealing-practices.pdf), including the requirementto submit an affidavitbased on personal knowledge attesting to the

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### [* 3]NYSCEF DOC. NO. 1359 INDEX NO. 653625/2021 RECEIVED NYSCEF: 03/29/2024

factual bases for redaction and a spreadsheet setting forth anon-conclusory good faith basis for each proposedredaction. Finally, the proposed targetedredactions ofthe documents filed as documentnumbers 675, 710, 996, 1140, 1153, and 1217 do notmeettheMosallem standard and shouldbeunsealed. Accordingly, itis ORDERED that the motions to seal/redactthe Exhibits are granted insofar as they seek to seal the documents filed as NYSCEF DocumentNumbers 688, 689, 706, 714, 715, 717, 726, 730,779,784,785,787,788,789,790,791,792,793,815,827,831,832,855, 1143, 1144, 1151, 1155, 1156, 1157, 1162, 1163, 1174, 1176, 1177, 1178, 1179, 1180, 1181, 1182, 1183, 1184, 1192, 1196, 1201, 1202, and 1216; it is further ORDERED that the motions to seal/redactthe Exhibits are granted insofar as they seek to redact confidential portions ofthe documents filed as NYSCEF DocumentNumber 672, 673, 685,687,691,693,694,695,696,705,708,711,718,719,722,724,744,745,746,749,750, 752,755,803,804,805,806,811,816,828,830,834,835,840,841,849,850,851,852,992, 993, 1003, 1004, 1141, 1142, 1145, 1146, 1147, 1148, 1149, 1150, 1152, 1154, 1158, 1159, 1160, 1161, 1164, 1165, 1166, 1167, 1168, 1169, 1170, 1187, 1188, 1189, 1190, 1191, 1193, 1199, 1200, 1204, 1205, 1206, 1207, 1212, 1213, 1214, 1215, 1219, 1220, 1222, 1223, 1224,and 1225; itis further ORDERED that the motions to seal/redactthe Exhibits are denied as to the document filed as NYSCEF DocumentNumber 760, 763, 764, 781, 798, 801, 817, 820, 826, 833, 842, 843, 846, 848, 997, 1007, 1171, 1172, 1173, 1175, 1185, 1186, 1194, 1195, 1203, 1208, 1209, 1210, 1211, 1218, and 1221, withoutprejudice to filing anew motion within 21 days to redact

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### [* 4]NYSCEF DOC. NO. 1359 INDEX NO. 653625/2021 RECEIVED NYSCEF: 03/29/2024

confidentialportions ofthe remaining Exhibits consistentwith this Decision and Order and applicable case law; it is further ORDERED that the County Clerk shall maintain the documents filed as NYSCEF DocumentNumbers 672, 673, 685, 687, 688, 689, 691, 693, 694, 695, 696, 705, 706, 708, 711, 714,715,717,718,719,722,724,726,730,744,745,746,749,750,752,755,779,784,785, 787,788,789,790,791,792,793,803,804,805,806,811,815,816,827,828,830,831,832, 834,835,840,841,849,850,851,852,855,992,993, 1003, 1004, 1141, 1142, 1143, 1144, 1145, 1146, 1147, 1148, 1149, 1150, 1151, 1152, 1154, 1155, 1156, 1157, 1158, 1159, 1160, 1161, 1162, 1163, 1164, 1165, 1166, 1167, 1168, 1169, 1170, 1174, 1176, 1177, 1178, 1179, 1180, 1181, 1182, 1183, 1184, 1187, 1188, 1189, 1190, 1191, 1192, 1193, 1196, 1199, 1200, 1201, 1202, 1204, 1205, 1206, 1207, 1212, 1213, 1214, 1215, 1216, 1219, 1220, 1222, 1223, 1224, and 1225 under seal, so that the documents maybe accessiblebythe parties, their counsel, and authorized courtpersonnel; it is further ORDERED that the document filed as NYSCEF DocumentNumber 760, 763, 764, 781, 798,801,817,820,826,833,842,843,846,848,997, 1007, 1171, 1172, 1173, 1175, 1185, 1186, 1194, 1195, 1203, 1208, 1209, 1210, 1211, 1218, and 1221 shall remain provisionally sealedfor 21 days from the date ofthe Court's entry ofthis Decision and Order on NYSCEF. If any party files anew motion to redact/seal confidentialportions ofthe document consistentwith this Decision and Order within that 21-dayperiod, the document shall remainprovisionally sealedpending resolution ofthatmotion. Ifno such motion is filed within 21 days from the entry ofthis Decision and Order, the parties shall alert the County Clerk that the motion to seal the above-referenced documents has been denied bythe Court and that the documents shouldbe unsealed on NYSCEF; itis further

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### [* 5]NYSCEF DOC. NO. 1359 INDEX NO. 653625/2021 RECEIVED NYSCEF: 03/29/2024

ORDEREDthatthe County Clerk shall unseal the documents filed to the docket as NYSCEF DocumentNumbers 675, 710, 996, 1140, 1153, and 1217; itis further ORDEREDthat, to the extenttheyhave not already done so, the parties shall upload redacted copies to NYSCEF ofthe documents filed atNYSCEF DocumentNumbers 672,673, 685,687,691,693,694,695,696,705,708,711,718,719,722,724,744,745,746,749,750, 752,755,803,804,805,806,811,816,828,830,834,835,840,841,849,850,851,852,992, 993, 1003, 1004, 1141, 1142, 1145, 1146, 1147, 1148, 1149, 1150, 1152, 1154, 1158, 1159, 1160, 1161, 1164, 1165, 1166, 1167, 1168, 1169, 1170, 1187, 1188, 1189, 1190, 1191, 1193, 1199, 1200, 1204, 1205, 1206, 1207, 1212, 1213, 1214, 1215, 1219, 1220, 1222, 1223, 1224,and 1225; itis further ORDEREDthatnothinginthis Decision and Order shallbe construed as sealing documents ortestimonyto be admitted attrial; itis further ORDEREDthat, as itrelates to future submissions that contain subjectmatterthatthe courthas authorizedto be sealedbythis Decision and Orderwhich are madebyanyparty, the parties may file a ioint stipulation, to be So Ordered, which will authorize the filing ofsuch future submissions to be filed in sealed and/or redacted form on NYSCEF,providedthat an unredacted copyofany documentis contemporaneously filed with arequestto seal. This constitutes the Decision and Order ofthe Court.

3/29/2024

DATE JOEL M. COHEN, J.S.C. CHECK ONE:
APPLICATION: CHECKIF APPROPRIATE:

# ~ CASE DISPOSED GRANTED**□** DENIED SETTLE ORDER INCLUDES TRANSFER/REASSIGN NON-FINAL DISPOSITION GRANTED IN PART SUBMIT ORDER FIDUCIARY APPOINTMENT 653625/2021 INTERNATIONAL BUSINESS vs. GLOBALFOUNDRIES U.S. INC. Motion No. 047 048

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