Court Upholds Work-Product Protection in Haptic v. Apple Discovery Dispute
June 2025 – Northern District of California
In a recent decision that may influence how courts approach discovery requests involving litigation funding, Judge Jacqueline Scott Corley of the U.S. District Court for the Northern District of California denied Apple Inc.’s motion to compel production of documents related to Haptic Inc.’s litigation funding arrangements.
Haptic, which is suing Apple for infringement of U.S. Patent No. 9,996,738, had secured litigation finance and Apple sought access to communications and agreements between Haptic and both current and potential funders, arguing that the materials were relevant to damages, standing, and witness credibility.
The court found that while certain documents—such as pre-litigation damages analyses and patent evaluations—were relevant, they were protected under the work-product doctrine. Judge Corley emphasized that these materials were prepared in anticipation of litigation and shared under confidentiality agreements, which did not constitute a waiver of privilege.
Notably, the court held that:
Work-product protections were not waived by sharing documents with funders under confidentiality agreements.
The common interest doctrine did not apply to potential funders with whom no final agreement was reached, but this did not result in waiver.
The funding agreement itself was not relevant to the core issues of standing or damages.
This ruling reinforces the importance of confidentiality protocols in litigation funding and provides guidance on the limits of discovery into third-party funding arrangements. While the court did not expand privilege protections, it affirmed that standard practices—such as the use of nondisclosure agreements and the absence of funder control—can preserve the confidentiality of litigation-related materials.
- James Blick, Director
California Office
