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A California federal judge has indicated that he is likely to grant Netflix's request for monetary sanctions against William Ramey, a prominent patent attorney, and his firm, Ramey LLP, for improperly sharing Netflix’s confidential information with AiPi LLC, a nonparty to the ongoing patent litigation. However, U.S. District Judge Jon S. Tigar noted that he is unlikely to pursue Netflix’s request for a civil contempt finding against Ramey.

The judge’s remarks were made during a remote hearing regarding Netflix's motion for sanctions following allegations that Ramey violated a protective order in a patent case filed by Lauri Valjakka against Netflix. The protective order, issued in July 2022, prohibited the disclosure of confidential Netflix information to nonparties, including AiPi LLC.

Netflix claims that Ramey disclosed sensitive Netflix documents—such as financial records and source code—to AiPi attorneys, who were not involved in the litigation. Despite AiPi's nonparty status, Ramey allegedly treated its lawyers as though they were covered under the protective order and shared confidential materials with them. This breach was reportedly revealed during discovery in an ongoing patent dispute between AiPi and Netflix in Virginia.

Sarah E. Piepmeier, Netflix’s attorney, argued that Ramey acted in disregard of the court’s protective order by sharing Netflix’s confidential information with AiPi employees without disclosing their involvement. Piepmeier further stated that Netflix is still unaware of the full extent of the breach and the individuals at AiPi who may have had access to Netflix’s information. Netflix has requested that Ramey be held financially responsible for legal fees incurred due to the breach and referred for potential disciplinary action by the state bar.

In defense, Ramey argued that he acted in good faith, believing that the AiPi attorneys were considered “affiliated” with his firm and thus permitted to access confidential information. He claimed that the attorneys had appeared at a deposition and were not intentionally concealed from Netflix. Ramey also emphasized that the AiPi attorneys were not involved in AiPi's litigation funding.

Judge Tigar acknowledged that Netflix had made a strong case that Ramey's actions had breached the protective order, but he expressed reluctance to pursue a civil contempt proceeding, favoring sanctions in the form of legal fees. The judge also indicated that he would not need to pursue contempt proceedings if he grants Netflix’s request for sanctions.

The sanctions request is part of an ongoing, high-stakes patent dispute between Valjakka and Netflix, which began in 2021. In addition to the patent issues, Netflix has raised concerns about the potential fraudulent transfer of intellectual property in relation to Valjakka's companies, which is currently under investigation in the case.

While the judge has not yet issued a ruling on the sanctions motion, his comments suggest that Ramey and his firm will likely face consequences for the breach, though a contempt finding remains unlikely.