July 8, 2011
Companies ranging from direct product manufacturers to web-based distributors often need to advertise that their goods possess a certain brand recognition factor or meet a specific standard of quality. Such advertising inadvertently may infringe on a trademark, and the company may face litigation as a result. As evidenced by a recent case involving a company sued by the NFL for selling allegedly infringing clothing, companies confronted with such lawsuits should look to their Comprehensive General Liability (“CGL”) policies for “advertising injury” insurance coverage. Although insurance companies often attempt to take an overly narrow view of the broad “advertising injury” insurance coverage included in CGL policies sold to policyholders, presenting “advertising injury” claims the right way will allow policyholders to access valuable insurance coverage for infringement claims.