Modern Font Applications LLC v. Alaska Airlines
Citation56 F.4th 981
Date Filed2022-12-29
Docket21-1838
Cited4 times
StatusPublished
Full Opinion (html_with_citations)
Case: 21-1838 Document: 53 Page: 1 Filed: 12/29/2022
United States Court of Appeals
for the Federal Circuit
______________________
MODERN FONT APPLICATIONS LLC,
Plaintiff-Appellant
v.
ALASKA AIRLINES, INC.,
Defendant-Appellee
______________________
2021-1838
______________________
Appeal from the United States District Court for the
District of Utah in No. 2:19-cv-00561-DBB-CMR, Judge
David Barlow.
______________________
Decided: December 29, 2022
______________________
PERRY S. CLEGG, Johnson & Martin, P.A., Salt Lake
City, UT, argued for plaintiff-appellant.
SHAWN G. HANSEN, Nixon Peabody LLP, Los Angeles,
CA, argued for defendant-appellee. Also represented by
SARAH ANDRE, SETH D. LEVY; ERIN HUNTINGTON, Albany,
NY.
______________________
Before NEWMAN, REYNA, and CUNNINGHAM, Circuit
Judges.
Case: 21-1838 Document: 53 Page: 2 Filed: 12/29/2022
2 MODERN FONT APPLICATIONS LLC v. ALASKA AIRLINES
Opinion for the court filed by Circuit Judge CUNNINGHAM.
Dissenting opinion filed by Circuit Judge NEWMAN.
CUNNINGHAM, Circuit Judge.
Modern Font Applications LLC seeks an interlocutory
appeal to challenge an order of the United States District
Court for the District of Utah, which affirmed a magistrate
judgeâs decision deeming MFAâs in-house counsel a âcom-
petitive decisionmakerâ and maintaining Alaska Airlines,
Inc.âs Attorneysâ Eyes Only designations as to its source
code. Mod. Font Applications v. Alaska Airlines, No. 19-cv-
00561, 2021 WL 364189, at *1 (D. Utah Feb. 3, 2021) (âMagistrate Decisionâ), affâd sub nom. Mod. Font Applica- tions LLC v. Alaska Airlines Inc.,2021 WL 3729382
(D.
Utah Mar. 2, 2021) (âDistrict Court Orderâ). Because we
lack jurisdiction over MFAâs interlocutory appeal under the
collateral order doctrine, we dismiss.
I. BACKGROUND
To avoid unnecessary delay from parties arguing or lit-
igating the form of a protective order, the District of Utah
found good cause exists to adopt a âStandard Protective Or-
derâ 1 in every case. D.U. Civ. R. 26-2(a). 2 Pursuant to that
protective order, Alaska designated certain source code
files as âCONFIDENTIAL INFORMATION â
ATTORNEYSâ EYES ONLY,â which precluded MFAâs in-
house counsel from accessing those materials under the
Standard Protective Order. J.A. 74, 79; Standard
1 The District of Utahâs Standard Protective Order is
available at: https://www.utd.uscourts.gov/sites/utd/files/S
tandard_Protective_Order.pdf.
2 The District of Utahâs Local Rules of Civil Practice,
effective December 2021, are available at:
https://www.utd.uscourts.gov/sites/utd/files/Dec%202021%
20Civil%20Rules.pdf.
Case: 21-1838 Document: 53 Page: 3 Filed: 12/29/2022
MODERN FONT APPLICATIONS LLC v. ALASKA AIRLINES 3
Protective Order at 9â11. When MFA challenged Alaskaâs
designations, Alaska filed two motions to maintain its pro-
tective order designations. J.A. 73â76, 98â100. Before the
court could resolve those motions, MFA filed Short Form
Discovery Motion #4 to Amend the Standard Protective Or-
der, seeking to permit its in-house counsel to access âall
disclosed information,â including documents designated
Attorneysâ Eyes Only and to add additional designations to
the Standard Protective Order specific to source code.
J.A. 109â11, 115â37. At the magistrate judgeâs direction,
the parties filed supplemental briefing to address the bur-
den of proof required to maintain an Attorneysâ Eyes Only
designation and the standards for evaluating competitive
decisionmaking. J.A. 21â22, 191â93 (MFA briefing),
241â47 (Alaska briefing).
The magistrate judge granted Alaskaâs motions to
maintain its protective order designations and denied
MFAâs motion to amend the protective order. Magistrate
Decision, at *4â6. The magistrate judge found that Alaska
had established that its source code contained trade secrets
and merited âheightened protection.â Id. at *4. The mag-
istrate judge also declined to modify the protective order
and permit MFAâs in-house counsel to access Attorneysâ
Eyes Only documents because âthe risk of inadvertent dis-
closure [of Alaskaâs confidential information] outweighs
the risk of prejudice to Plaintiff.â Id. at *6. In doing so, the
magistrate judge concluded that MFAâs in-house counsel
was a âcompetitive decisionmakerâ because of his licensing
activities and because MFAâs âentire business model re-
volves around the licensing of patents through litigation
with the assistance of its in-house counsel.â Id. at *5.
The district court issued an order affirming the magis-
trate judgeâs decision. District Court Order, at *1â3. The
district court explained that it would only modify or set
aside the magistrate judgeâs non-dispositive order âif it is
contrary to law or clearly erroneous.â Id. at *1. The district
court affirmed the magistrate judgeâs decision to maintain
Case: 21-1838 Document: 53 Page: 4 Filed: 12/29/2022
4 MODERN FONT APPLICATIONS LLC v. ALASKA AIRLINES
Alaskaâs protective order designations, explaining case law
supported that âdistrict courts regularly provide for addi-
tional restrictions on discovery to account for the unique
characteristics of source codeâ and that MFA had ânot iden-
tified any authority demonstrating otherwise.â Id. at *3.
The district court also affirmed the magistrate judgeâs de-
cision declining to amend the protective order, explaining
that MFA had failed to cite case law supporting its argu-
ment that it should not bear the burden of proof to modify
the Standard Protective Order. Id. at *2. The district court
stated that the magistrate judge properly evaluated MFAâs
counselâs activities, including his competitive decision-
making, as required by our decision in U.S. Steel Corp. v.
United States, 730 F.2d 1465 (Fed. Cir. 1984). District
Court Order, at *2. The district court further explained
that the magistrate judge had appropriately cited cases
âfor their relevance to in-house counselâs involvement in li-
censing making it a competitive decisionmaker.â Id. at *3.
In summary, the district court agreed that the magistrate
judgeâs decision âis not contrary to lawâ or âclearly errone-
ous.â Id.
MFA seeks an interlocutory appeal of this order.
II. DISCUSSION
MFA argues that we should hear its interlocutory ap-
peal under the collateral order doctrine. Appellantâs Br.
16â26. We disagree and conclude that we lack jurisdiction.
A. The Collateral Order Doctrine
Congress limited our jurisdiction to any appeal from a
âfinalâ decision of a district court âarising under[] any Act
of Congress relating to patents,â with only limited excep-
tions. 28 U.S.C. § 1295(a)(1); see Bd. of Regents of the Univ. of Tex. Sys. v. Bos. Sci. Corp.,936 F.3d 1365
, 1370 (Fed. Cir. 2019). Under the âfinal judgment rule,â âa party may not appeal âuntil there has been a decision by the district court that ends the litigation on the merits and leaves Case: 21-1838 Document: 53 Page: 5 Filed: 12/29/2022 MODERN FONT APPLICATIONS LLC v. ALASKA AIRLINES 5 nothing for the court to do but execute the judgment.ââ Bd. of Regents, 936 F.3d at 1370 (quoting Robert Bosch, LLC v. Pylon Mfg. Corp.,719 F.3d 1305, 1308
(Fed. Cir. 2013) (en
banc)).
The collateral order doctrine is a practical construction
of the final judgment rule that permits review of not only
judgments that âterminate an action,â but also the âsmall
classâ of collateral rulings that are appropriately deemed
âfinal.â Mohawk Indus., Inc. v. Carpenter, 558 U.S. 100,
106(2009) (citing Cohen v. Beneficial Indus. Loan Corp.,337 U.S. 541
, 545â46 (1949)). Courts of appeals may allow interlocutory appeals of decisions that (1) are âconclusive;â (2) âresolve important questions separate from the merits;â and (3) are âeffectively unreviewable on appeal from the fi- nal judgment in the underlying action.â Swint v. Chambers Cnty. Commân,514 U.S. 35, 42
(1995) (citing Cohen,337 U.S. at 546
).
The Supreme Court has repeatedly emphasized the
limited scope of the collateral order doctrine, explaining
that it should ânever be allowed to swallow the general rule
that a party is entitled to a single appeal, to be deferred
until final judgment has been entered.â Mohawk, 558 U.S.
at 106(quoting Digit. Equip. Corp. v. Desktop Direct, Inc.,511 U.S. 863, 868
(1994)); see also Will v. Hallock,546 U.S. 345, 350
(2006) (âemphasizing [the doctrineâs] modest scopeâ). The limited application of the collateral order doc- trine reflects the important policy concerns that âpiecemeal appeals would undermine the independence of the district judgeâ and hinder judicial efficiency. Firestone Tire & Rub- ber Co. v. Risjord,449 U.S. 368, 374
(1981); see also 15B C.
Wright, A. Miller, & E. Cooper, Federal Practice and Pro-
cedure § 3914.23 (2d ed. Apr. 2022 update) (âRoutine ap-
peal from disputed discovery orders would disrupt the
orderly progress of the litigation, swamp the courts of ap-
peals, and substantially reduce the district courtâs ability
to control the discovery process.â).
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6 MODERN FONT APPLICATIONS LLC v. ALASKA AIRLINES
Generally, pretrial discovery orders are not âfinalââ
and therefore, not reviewableâunder the collateral order
doctrine. Firestone Tire, 449 U.S. at 377 (â[W]e have gen-
erally denied review of pretrial discovery orders.â); see also
15B C. Wright, A. Miller, & E. Cooper, Federal Practice and
Procedure § 3914.23 (2d ed. Apr. 2022 update) (â[T]he rule
remains settled that most discovery rulings are not final.â).
Such discovery orders are generally unreviewable under
the third requirement of the collateral order doctrine be-
cause they can be adequately reviewed after a final judg-
ment.
When faced with similar pretrial discovery orders, we
have held that they are not appealable under the collateral
order doctrine. For example, in Quantum Corp. v. Tandon
Corp., we granted Quantumâs motion to dismiss an inter-
locutory appeal to review an order granting a motion to
compel disclosure of attorney opinion letters. 940 F.2d 642,
643â44 (Fed. Cir. 1991). In doing so, we noted that:
[I]t is settled that discovery orders issued within
the context of a primary proceeding are generally
not appealable orders. In addition to not complying
with the third requirement of the Cohen doctrine,
such discovery orders may present issues not com-
pletely separate from the merits and thus the or-
ders are not truly collateral under the second
requirement of the Cohen doctrine.
Id.at 644 n.2 (citation omitted). And in Amgen Inc. v. Hos- pira, Inc., we held that we lacked jurisdiction to review an order denying a motion to compel disclosure of cell-culture information.866 F.3d 1355
, 1358â60 (Fed. Cir. 2017). There, we again stated that â[s]uch orders are not review- able at the interlocutory stage because they are reviewable from a final judgment.âId. at 1359
.
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MODERN FONT APPLICATIONS LLC v. ALASKA AIRLINES 7
B. MFAâs Appeal Must Be Dismissed
MFAâs appeal does not satisfy the third requirement of
the collateral order doctrine because it is reviewable after
a final judgment. See Swint, 514 U.S. at 42. Numerous cases have ruled that such discovery orders are outside ap- pellate jurisdiction because they can be reviewed after final judgment. See, e.g., Mohawk,558 U.S. at 108, 114
; Fire- stone Tire, 449 U.S. at 377â78; Quantum,940 F.2d at 644
;
Amgen, 866 F.3d at 1359â60.
MFA argues it will be âirreparably prejudic[ed] . . .
both financially and in its ability to effectively evaluate and
prosecute its claimsâ if the district courtâs order stands and
interlocutory appeal is denied. Appellantâs Br. 24â25,
36â38. MFA further contends that it âwill suffer prejudice
in the form of one of its key strategists and analysts being
effectively removed from large portions of this case.â Ap-
pellantâs Br. 36. This prejudice, MFA contends, would be
unlikely to serve as âground for reversal of any adverse de-
cision.â Appellantâs Br. 25, 36. MFAâs prejudice arguments
are unavailing.
The collateral order doctrine asks whether the order at
issue would be âeffectively unreviewableâ in an appeal fol-
lowing final judgment, not whether the appellant would be
unlikely to succeed when it later appeals. See Swint, 514
U.S. at 42. Even assuming MFA would be unlikely to se- cure reversal on final appeal, that is insufficient to satisfy the third requirement. See Mohawk,558 U.S. at 110, 114
(affirming Eleventh Circuitâs judgment dismissing appeal for lack of jurisdiction under collateral order doctrine de- spite recognizing â[m]ost district court rulings on [discov- ery] matters . . . are unlikely to be reversed on appealâ). Moreover, it is far from clear MFA will suffer prejudice. MFA has access to outside counsel, and MFA could hire Case: 21-1838 Document: 53 Page: 8 Filed: 12/29/2022 8 MODERN FONT APPLICATIONS LLC v. ALASKA AIRLINES experts to support its technical analysis. 3 See J.A. 37. Any âprejudiceâ alleged by MFA from its in-house counsel lack- ing access to certain documents is merely speculative until a final judgment is complete. See Richardson-Merrell, Inc. v. Koller,472 U.S. 424, 439
(1985). And any evaluation of that prejudice would be intertwined with the merits of the case, violating the second requirement of the collateral or- der doctrine.Id.
at 439â40.
Nor do we agree with MFAâs argument about financial
prejudice. Even if MFA were to suffer financial hardship
from the district courtâs order here, that financial interest
is ânot sufficient to set aside the finality requirement im-
posed by Congress.â Richardson-Merrell, Inc., 472 U.S. at
436. In Richardson-Merrell, the Supreme Court recognized that erroneous disqualification of a clientâs counselâa far greater burden than would occur hereââimposes financial hardship on both the disqualified lawyer and the client.âId.
Nevertheless, the court declined to allow an interlocu- tory appeal to permit review of the disqualification order.Id.
at 436â40. At bottom, MFA does not qualify for an in-
terlocutory appeal. 4
3 The magistrate judge considered the prejudice to
MFA before excluding its in-house counsel from accessing
Attorneysâ Eyes Only materials, concluding that â[e]ven if
reliance on outside counsel and experts causes some finan-
cial hardship, the normal burdens of patent litigation are
insufficient to outweigh the significant risk of inadvertent
disclosure of confidential information in this case.â Magis-
trate Decision, at *6.
4 The cases cited by the dissent are inapposite. They
do not say that we have discretion to ignore the require-
ments of the collateral order doctrine. First, most concern
28 U.S.C. § 1292(b), which explicitly provides that federal
Case: 21-1838 Document: 53 Page: 9 Filed: 12/29/2022
MODERN FONT APPLICATIONS LLC v. ALASKA AIRLINES 9
Where we have found jurisdiction under the collateral
order doctrine, we have usually done so to address some
harm that cannot be undone on appeal from a final judg-
ment. For example, where a district court denied requests
to seal certain information, we applied the collateral order
doctrine to permit interlocutory appeal because, among
other things, âonce the partiesâ confidential information is
made publicly available, it cannot be made secret again.â
Apple Inc. v. Samsung Elecs. Co., 727 F.3d 1214, 1217, 1220(Fed. Cir. 2013) (considering appeal of order âdenying re- quests to seal various confidential exhibits attached to pre- trial and post-trial motionsâ); see also DePuy Synthes Prods., Inc. v. Veterinary Orthopedic Implants, Inc.,990 F.3d 1364, 1368
(Fed. Cir. 2021) (considering interlocutory courts of appeals have discretion to decline to hear certain appealsâunlike § 1295, which governs our jurisdiction here and does not provide discretion. Blackie v. Barrack,524 F.2d 891, 900
(9th Cir. 1975); A. Olinick & Sons v. Dempster Bros., Inc.,365 F.2d 439, 442
(2d Cir. 1966); ICTSI Or., Inc. v. Intâl Longshore & Warehouse Union,22 F.4th 1125, 1131
(9th Cir. 2022); In re Convertible Rowing Exerciser Pat. Litig.,903 F.2d 822, 822
(Fed. Cir. 1990); Moorman v. UnumProvident Corp.,464 F.3d 1260, 1272
(11th Cir. 2006). Second, two cases conclude that denials of immunity from suit are immediately appealableâan ap- proach the Supreme Court endorsed because denials of im- munity meet the requirements of the collateral order doctrine. See Bd. of Regents, 936 F.3d at 1371â72; Metlin v. Palastra,729 F.2d 353, 355
(5th Cir. 1984); see also Mitchell v. Forsyth,472 U.S. 511
, 525â27 (1985). Finally,
the remaining cases that analyze jurisdiction under the col-
lateral order doctrine required that the doctrineâs prereq-
uisites be met before the courts would exercise
jurisdictionâexactly as we do here.
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10 MODERN FONT APPLICATIONS LLC v. ALASKA AIRLINES
appeal of order unsealing amended complaint). No such
dire circumstances exist here.
Notably, this case does not involve whether Alaskaâs
information should be sealed or unsealed, but rather
whether its information could be disclosed to MFAâs in-
house counsel, which is an entirely different issue. Moreo-
ver, the district court did not permit disclosure of Alaskaâs
confidential information to MFAâs in-house counsel, in-
stead protecting that information by denying MFAâs in-
house counsel access. Because there is no risk Alaskaâs in-
formation will be revealed to an improper recipient, the dis-
trict courtâs order does not fall within the âsmall classâ of
collateral rulings appropriate for appellate review.
Importantly, parties routinely raise discovery disputes
multiple times throughout a lawsuit. Protective order is-
sues represent only a small subset of the many discovery
disputes district courts resolve. To permit MFAâs interloc-
utory appeal here would encourage parties to âunduly de-
lay the resolution of district court litigation and needlessly
burdenâ this court by seeking appellate review of any pre-
trial discovery dispute in any patent case. See Mohawk,
558 U.S. at 112.
III. CONCLUSION
Accordingly, we dismiss MFAâs interlocutory appeal for
lack of jurisdiction under the collateral order doctrine.
DISMISSED
Case: 21-1838 Document: 53 Page: 11 Filed: 12/29/2022
United States Court of Appeals
for the Federal Circuit
______________________
MODERN FONT APPLICATIONS LLC,
Plaintiff-Appellant
v.
ALASKA AIRLINES, INC.,
Defendant-Appellee
______________________
2021-1838
______________________
Appeal from the United States District Court for the
District of Utah in No. 2:19-cv-00561-DBB-CMR, Judge
David Barlow.
____________________
NEWMAN, Circuit Judge, dissenting.
The panel majority holds that we do not have jurisdic-
tion to consider this appeal of the district courtâs eviden-
tiary ruling. However, our authority to review this ruling
is not a matter of appellate jurisdiction, but of appellate
discretion. A courtâs jurisdiction is established by statute,
and the question concerning this particular protective or-
der is within our jurisdiction and subject to our discretion
to review and resolve.
I believe that in the circumstances hereof it is prefera-
ble to exercise this discretion and decide the question
Case: 21-1838 Document: 53 Page: 12 Filed: 12/29/2022
2 MODERN FONT APPLICATIONS LLC v. ALASKA AIRLINES
concerning this protective order. Nonetheless, the panel
majority holds that we do not have jurisdiction, and rele-
gates our decision of this aspect until after final judg-
mentâthus creating inefficiency and possible injustice. I
respectfully dissent.
DISCUSSION
I
We have jurisdiction to review this protective
order at this stage of trial proceedings
Jurisdiction is a rigorous concept, for it establishes âa
tribunalâs power to hear a case, a matter that can never be
forfeited or waived.â Union Pac. R.R. Co. v. Brotherhood of
Locomotive Engârs & Trainmen Gen. Comm. of Adjustment,
Cent. Region, 558 U.S. 67, 81(2009) (quoting United States v. Cotton,535 U.S. 625, 630
(2002)). The Supreme Court
explained:
Recognizing that the word âjurisdictionâ has been
used by courts, including this Court, to convey
âmany, too many, meanings,â Steel Co. v. Citizens
for Better Environment, 523 U.S. 83, 90 (1998), we
have cautioned, in recent decisions, against profli-
gate use of the term. Not all mandatory âprescrip-
tions, however emphatic, are . . . properly typed
jurisdictional,â we explained in Arbaugh v. Y & H
Corp., 546 U.S. 500, 510.Id.
(citations omitted). The Court has discussed the differ- ence between subject matter jurisdiction and a claim-pro- cessing matter, see Kontrick v. Ryan,540 U.S. 443, 456
(2004), and the distinction between a courtâs jurisdiction founded on legislative action, and a courtâs discretion to act on matters within its jurisdiction. See Bowles v. Russell,551 U.S. 205
, 211â12 (2007) (âThis Courtâs treatment of its
certiorari jurisdiction also demonstrates the jurisdictional
distinction between court-promulgated rules and limits en-
acted by Congress.â).
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MODERN FONT APPLICATIONS LLC v. ALASKA AIRLINES 3
Appellate courts have jurisdiction to resolve issues that
arise in cases within their appellate assignment. Appellate
review is a matter of appellate discretion, as illustrated in
Metlin v. Palastra, 729 F.2d 353, 355(5th Cir. 1984) (âOur jurisdiction can, in the interest of judicial economy, extend as a matter of discretion to review of the closely related de- nial of qualified immunity.â). See also, e.g., Blackie v. Bar- rack,524 F.2d 891
, 900 (9th Cir. 1975) (âBecause the record is hazy, because we have granted the extensions, and be- cause the issues have now been briefed and argued and are ripe for decision, we think the preferable course is for us to decide the appeal and provide guidance to the trial court.â). In A. Olinick & Sons v. Dempster Bros., Inc.,365 F.2d 439
(2d Cir. 1966) the appellate court discussed its discretion to accept or reject a certified question and applicability of the writ of mandamus, and stated that âthe Court of Ap- peals has total discretionâakin to that exercised by the Su- preme Court on petitions for certiorariâin deciding whether or not to permit review.âId. at 442
.
Protective orders concerning confidentiality and dis-
covery have been reviewed, applying the standard of abuse
of discretion. The court in SEC v. Merrill Scott & Assocs.,
Ltd., 600 F.3d 1262, 1271 (10th Cir. 2010) stated that âor-
dinarily requests to modify [a protective order] are directed
to the district courtâs discretion and subject to review only
for abuse of discretion,â quoting 8 Charles Alan Wright, Ar-
thur R. Miller & Richard L. Marcus, Federal Practice &
Procedure § 2044.1 at 575â76 (2d ed. 1994), and stating:
âWe conclude that we have jurisdiction to address the mer-
its of the challenged order of the district court.â Id. at 1270.
Other circuits have acted similarly. E.g., SEC v.
TheStreet.Com, 273 F.3d 222, 228 (2d Cir. 2001) (conclud- ing that the appellate court has jurisdiction to review mod- ification of a protective order); Moorman v. UnumProvident Corp.,464 F.3d 1260, 1272
(11th Cir. 2006) (âUn-
der § 1292(b), appellate review, even for certified ques-
tions, is discretionary . . . . By extension, review by
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4 MODERN FONT APPLICATIONS LLC v. ALASKA AIRLINES
appellate courts of noncertified questions is also discretion-
ary.â).
We discussed this discretion in In re Convertible Row-
ing Exerciser Patent Litig., 903 F.2d 822 (Fed. Cir. 1990):
The granting of the appeal is also discretionary
with the court of appeals which may refuse to en-
tertain such an appeal in much the same manner
that the Supreme Court today refuses to entertain
applications for writs of certiorari.
Id. at 822. We explained that appellate review of an inter-
locutory order is a matter of discretion:
It should be made clear that if application for an
appeal from an interlocutory order is filed with the
court of appeals, the court of appeals may deny
such application without specifying the grounds
upon which such a denial is based. It could be
based upon a view that the question involved was
not a controlling issue. It could be denied on the
basis that the docket of the circuit court of appeals
was such that the appeal could not be entertained
for too long a period of time. But, whatever the rea-
son, the ultimate determination concerning the
right of appeal is within the discretion of the appro-
priate circuit court of appeals.
Id. (citing S. Rep. No. 2434 (1958), 85th Cong., 2d Sess. 3,
4, reprinted in 1958 U.S.C.C.A.N. 5255).
We have applied these principles to discovery matters.
In In re Deutsche Bank Trust Co. Americas, 605 F.3d 1373,
1377(Fed. Cir. 2010), we recited that â[f]inal decisions con- cerning discovery matters are reviewed by this court under the abuse of discretion standard.â See also Baystate Tech- nologies, Inc. v. Bowers,283 F. Appâx 808
(Fed. Cir. 2008)
(per curiam) (reviewing denial of a motion to modify a pro-
tective order, applying the standard of abuse of discretion).
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MODERN FONT APPLICATIONS LLC v. ALASKA AIRLINES 5
The collateral order doctrine is a guide to dis-
cretion, not a rule of jurisdiction
The collateral order doctrine, on which the panel ma-
jority relies, recites factors relevant to discretionary review
of aspects within the courtâs jurisdiction. See Kell v. Ben-
zon, 925 F.3d 448, 453 (10th Cir. 2019) (â[T]he collateral-
order doctrine would ordinarily apply only if an appellate
court would probably not need to consider the merits a sec-
ond time.â).
Applying this guidance, in Board of Regents of the Uni-
versity of Texas System v. Boston Scientific Corp., 936 F.3d
1365(Fed. Cir. 2019), we held that a transfer order was immediately appealable, rather than requiring the appel- lant to wait for final judgment. Id. at 1370. In Apple Inc. v. Samsung Electronics Co.,727 F.3d 1214
(Fed. Cir. 2013), we exercised our discretion and accepted immediate appeal concerning the unsealing of certain discovery documents, reasoning that the harm of erroneous unsealing could not be undone if appeal were delayed.Id. at 1220
.
The Supreme Court has explained that â[t]he collateral
order doctrine is best understood not as an exception to the
âfinal decisionâ rule laid down by Congress in § 1291, but as
a âpractical constructionâ of it.â Swint v. Chambers Cty.
Commân, 514 U.S. 35, 41â42 (1995) (quoting Dig. Equip. Corp. v. Desktop Direct, Inc.,511 U.S. 863, 867
(1994));id.
(âtentative, informal, or incompleteâ rulings are not imme- diately appealable)) (quoting Cohen v. Beneficial Indus. Loan Corp.,337 U.S. 541, 546
(1949)).
Imprecise usage of âjurisdictionâ is not a new phenom-
enon, as the Court acknowledged in John R. Sand & Gravel
Co. v. United States, 552 U.S. 130, 134 (2008) (âAs conven-
ient shorthand, the Court has sometimes referred to the
time limits in such statutes as âjurisdictional.ââ). My col-
leagues appear to have adopted this convenient shorthand,
for their holding that we do not have jurisdiction over this
appeal is otherwise unsupported.
Case: 21-1838 Document: 53 Page: 16 Filed: 12/29/2022
6 MODERN FONT APPLICATIONS LLC v. ALASKA AIRLINES
II
The Utah district courtâs Standard Protective
Order
This appeal concerns designations by Alaska Air-
lines under the Standard Protective Order of the Dis-
trict of Utah, which authorizes parties to designate
discovery items as âAttorneys Eyes Onlyâ for the exclusion
of in-house attorneys. 1 Alaska also seeks to preserve the
confidentiality of its source code.
The Standard Protective Order states the right of a
party to challenge a confidentiality designation at any
time:
9. Challenge to Designation
(a) Any receiving party may challenge a producing
partyâs designation at any time. A failure of any
party to expressly challenge a claim of confidenti-
ality or any document designation shall not consti-
tute a waiver of the right to assert at any
subsequent time that the same is not in fact confi-
dential or not an appropriate designation for any
reason.
(b) Any receiving party may disagree with the des-
ignation ofâŚATTORNEYS EYES ONLYâŚstating
with particularity the reasons for the request⌠.
The producing party shallâŚexplain the reason for
the particular designation and to state its intent to
seek a protective order⌠.
(c) âŚThe burden of proving that the designation is
proper shall be upon the producing party. . . .
1 Available at: https://www.utd.uscourts.gov/sites/utd
/files/Standard_Protective_Order.pdf.
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MODERN FONT APPLICATIONS LLC v. ALASKA AIRLINES 7
The Utah local rules provide for appeal of Protective Order
designations:
Rule 26-2(a)(2). Any party or person who believes
that substantive rights are being impacted by ap-
plication of the [Standard Protective Order] rule
may immediately seek relief. . . .
Applying this rule, Modern Font Applications (MFA) chal-
lenges Alaskaâs âAttorneys Eyes Onlyâ designations, MFA
stating that it will be âirreparably prejudicedâ in this liti-
gation if its in-house counsel is denied access to Alaskaâs
confidential information. MFA draws analogy to the situ-
ation in Osband v. Woodford, 290 F.3d 1036(9th Cir. 2002), where the court held that it has jurisdiction to hear the ap- peal concerning a habeas petition, reasoning that âhaving never discussed the discovered materials with the âprose- cutorial personnelâ who prosecuted Osband, the State may never know how it could have done a better job in defending against the habeas petition . . . . It therefore could never show prejudice [and] even if the State could show prejudice, it is unlikely that this could serve as a ground for reversal of a grant of habeas.âId. at 1041
.
The district court rejected MFAâs challenge and sus-
tained Alaskaâs confidentiality and âAttorneys Eyes Onlyâ
designations. 2 The court found that the balance of harms
weighs against disclosure to MFAâs in-house counsel of
Alaskaâs confidential business and technological infor-
mation. The court explained that: âThis is not a case where
in-house counsel engages in only limited licensing activi-
ties as in Live Eyewear, but rather, [MFA]âs entire business
2 Modern Font Applications LLC v., Alaska Airlines, Inc.,
Case No. 2:19-cv-00561-DBB-CMR, 2021 WL 364189(D. Utah Feb. 3, 2021);2021 WL 3729382
(D. Utah Mar. 2,
2021) (âDist. Ct. Order.â).
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8 MODERN FONT APPLICATIONS LLC v. ALASKA AIRLINES
model revolves around the licensing of patents through lit-
igation with the assistance of its in-house counsel[.]â Dist.
Ct. Order at *5.
With respect to MFAâs access to Alaskaâs source code,
the district court observed that the source code âcontains
both sensitive and valuable information,â id. at *4, and
held that MFA had not adequately explained why it needs
Alaskaâs source code. It is well-recognized that source code
may be a companyâs âcrown jewels,â Unwired Planet LLC
v. Apple, Inc., 2013 WL 1501489, at *5 (D. Nev. Apr. 11, 2013), and âits secrecy is of enormous commercial value,â Viacom Intâl Inc. v. YouTube Inc.,253 F.R.D. 256, 259
(S.D.N.Y. 2008). In Deutsche Bank we stated:
A determination of the risk of inadvertent disclo-
sure or competitive use does not end the inquiry.
Even if a district court is satisfied that such a risk
exists, the district court must balance this risk
against the potential harm to the opposing party
from restrictions imposed on that partyâs right to
have the benefit of counsel of its choice. U.S.
Steel, 730 F.2d at 1468; Brown Bag Software v. Sy-
mantec Corp., 960 F.2d 1465, 1470 (9th Cir. 1992).
In balancing these conflicting interests the district
court has broad discretion to decide what degree of
protection is required. Seattle Times Co. v. Rhine-
hart, 467 U.S. 20, 36 (1984); Brown Bag Soft-
ware, 960 F.2d at 1470.
605 F.3d at 1380. These principles, as applied by the
district court, are appropriate for our review.
The panel majority states its concern that â[permitting]
MFAâs interlocutory appeal here would encourage parties
to âunduly delay the resolution of district court litigation
and needlessly burdenâ this court by seeking appellate re-
view of any pretrial discovery dispute in any patent case.â
Maj. Op. at 10 (quoting Mohawk Indus., Inc. v. Carpenter,
558 U.S. 100, 112 (2009)). This policy concern is not a
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MODERN FONT APPLICATIONS LLC v. ALASKA AIRLINES 9
criterion of appellate jurisdiction, but of appellate discre-
tion as applied to an appeal of which we have subject mat-
ter jurisdiction.
The panel majority, while denying this courtâs appel-
late jurisdiction, discusses the merits of MFAâs argument
but nonetheless declines to make a final decision, citing
MFAâs ability to request âreview[] after final judgment.â
Maj. Op. at 7. In my view, the preferable path at this stage
of this case is to exercise our discretion and finally resolve
these confidentiality and protective order issues, for if
MFAâs in-house counsel is indeed entitled to receive this
information, the information should be available before,
not after, trial.
From the ruling that we do not have jurisdiction, I re-
spectfully dissent.