A federal judge in Oakland has signaled his intent to impose sanctions on patent attorney Bill Ramey and his firm, Ramey LLP, for violating a protective order by sharing Netflix Inc.’s confidential information with a litigation funder. The case stems from a patent infringement lawsuit filed by Finnish inventor Lauri Valjakka against Netflix, in which Ramey represented Valjakka.
During a hearing the U.S. District Court indicated that attorneys’ fees would be an appropriate sanction, noting that they would likely be substantial. The dispute centers on Ramey’s disclosure of Netflix’s source code and financial information to AiPi LLC, a litigation funding company, without proper authorization. Netflix contends that these materials, described as the “crown jewels of its business,” were shared in violation of the court’s protective order, which restricts access to sensitive information to authorized individuals only.
At the hearing, Netflix’s attorney, Sarah Piepmeier of Perkins Coie, argued that AiPi had access to the confidential information before Netflix was aware of the funding arrangement. She expressed concern that AiPi’s possession of Netflix’s proprietary data could influence its decisions in future litigation or inspire new lawsuits. Ramey defended his actions, asserting that the protective order allowed him to share the information with “affiliates,” a category he believed included AiPi’s attorneys. He further claimed that no harm had occurred because AiPi’s lawyers assured him they hadn’t used the materials inappropriately.
Judge Tigar expressed skepticism about Ramey’s defense, stating that having individuals affiliated with a litigation funder review Netflix’s source code constituted a situation of harm. He also indicated that he would consider referring Ramey to the California State Bar or another disciplinary body for further review.
This development adds to a series of legal challenges faced by Ramey and his firm. Earlier this year, Judge Tigar denied Ramey’s application for pro hac vice admission in a separate case, CyboEnergy Inc. v. Netflix Inc., ruling that Ramey had been practicing law in California without a state bar license. Additionally, Ramey has faced scrutiny over his firm’s handling of multiple patent cases in California without proper licensure, leading to questions about his compliance with state ethical standards .
The case, Valjakka v. Netflix Inc., continues to unfold, with potential implications for the intersection of patent law, litigation funding, and the protection of confidential business information.