Judge Grewal revealed that some of Samsung's licensing executives got their hands on an non-redacted document containing extremely sensitive information describing certain Apple and Nokia licensing deals meant solely for use in litigation by outside counsel. Due to the nature of such documents' contents, which could be used against another corporation as an unfair negotiation tactic, the information is normally redacted and marked as "Highly Confidential -- Attorneys' Eyes Only."
That was apparently not the case with the Apple-Nokia terms, and Samsung executives allegedly leveraged said information against Nokia during a licensing negotiation that took place on June 4, 2013. According to Wednesday's order, Nokia's Chief Intellectual Property Officer, Paul Melin alleges Samsung executive Dr. Seungho Ahn not only mentioned his cognizance of the confidential Apple-Nokia license, but used this knowledge to gain an unfair advantage "by asserting that the Apple-Nokia terms should dictate terms of a Samsung-Nokia license."
From the order:
Specifically, according to Mr. Melin, Dr. Ahn stated that Apple had produced the Apple-Nokia license in its litigation with Samsung, and that Samsung’s outside counsel had provided his team with the terms of the Apple-Nokia license. Mr. Melin recounts that to prove to Nokia that he knew the confidential terms of the Apple-Nokia license, Dr. Ahn recited the terms of the license, and even went so far as to tell Nokia that “all information leaks.”
The revelation is somewhat shocking, considering Samsung's action breaches the widely respected rule governing protective court orders. In essence, the breach undermines a court's assurance of confidentiality. These protective orders are crucial for a court to adjudicate properly, and with adequate transparency, the full scope of a case.
Judge Grewal points out the onus to uphold the rule, and thereby the sanctity of the court, falls largely on counsel .
"A casual observer might reasonably wonder what magic a protective order works that allows outside counsel access to confidential information to advance the case without countenancing untoward uses by the client," Judge Grewal writes. "The answer is not a magical one at all: confidential information remains confidential because counsel and clients alike follow court orders. If parties breach this basic rule, the court’s assurances become meaningless."
As for how Samsung execs managed to gain access to the Apple-Nokia deal, the order explains that the document was part of fact discovery produced during the first Apple v. Samsung case between August 2011 and March 2012. In fact, not only did Apple divulge its patent license agreement with Nokia, but also ongoing arrangements with Ericsson, Sharp and Philips.
Source: Appleinsider
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