With all of the controversy surrounding the recent WikiLeaks release of classified information, it is important for companies to keep in mind that even lawfully released documents can be damaging. The Walt Disney Co. (“Disney”) learned this the hard way back in 2001, when a Los Angeles Superior Court Judge ordered the unsealing of tens of thousands of documents in the long running litigation between Disney and Stephen Slesinger, Inc. (the heirs to the U.S. rights to Winnie the Pooh) over licensing rights and a royalties dispute. Particularly damaging to Disney was that included in the documents to be unsealed were two orders imposing sanctions against Disney for its conduct in the case (which included destroying thousands of documents after an instruction by the Court to preserve all evidence relating to the matter).
While trade secret arguments are normally thought to be sufficient to seal documents in such cases, Courts are increasingly weighing such private interests against the public interest in knowing what is taking place in the court system. However, several thousand other documents in the case remained under seal as they were protected by an earlier Confidentiality Agreement reached by the parties to cover documents exchanged in discovery. Therefore, it would be wise for counsel to insist upon a confidentiality agreement covering all documents exchanged in discovery, even if the filings in the case are made under seal, in order to better protect your clients’ information.
http://www.american-reporter.com/3,995/2495.html