Intellectual Property accounts for the majority of all property owned by modern corporations. Because it is therefore fiercely protected, liability for alleged Intellectual Property infringement is a major risk facing corporations today. Indeed, corporations face lawsuits for copyright infringement, trademark and “trade dress” infringement, patent infringement and piracy, antitrust violations, unfair competition, defamation, privacy violations, and even blast faxes.
Corporations confronted with such lawsuits should look to their Comprehensive General Liability (“CGL”) policies for “advertising injury” insurance coverage. Unfortunately, insurance companies continue to take an overly narrow view of the broad “advertising injury” insurance coverage included in CGL policies sold to corporate policyholders. When faced with insurance coverage denials for “advertising injury” claims, policyholders should be prepared to contest them, considering the points below.