Intellectual Property

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Artificial intelligence (AI) is rapidly changing the way businesses operate, from the way we research and write, to the way data is processed, to the way inventory is measured and distributed, to the way employees are monitored and beyond. Soon, artificial intelligence might be providing life advice, saving hospital patients or accelerating the development of cities. It is already reshaping corporate America. Very few, if any, industries—including the insurance industry—are immune. As the consultancy McKinsey wrote in 2021, artificial intelligence “will have a seismic impact on all aspects of the insurance industry.” McKinsey’s prediction has proved prescient.

As AI continues to influence the insurance industry and the broader economy, new opportunities and risks abound for policyholders. It is therefore essential for policyholders to keep up-to-date about insurance law’s latest frontier. To help policyholders navigate this new frontier, Hunton Andrews Kurth LLP’s insurance recovery team is introducing a new resource: The Hunton Policyholder’s Guide to Artificial Intelligence.
Continue Reading Introducing The Hunton Policyholder’s Guide to Artificial Intelligence

In September, we discussed a Florida district court’s finding that an insurer must defend a Miami strip club in a lawsuit filed by 17 models who alleged the club used their images to promote its business without authorization. Recently, an Illinois federal judge ruled similarly, ordering that First Mercury Insurance Company defend its insured, Triple Location, against a similar lawsuit.

In First Mercury Insurance Co. v. Triple Location LLC, three models sued the insured strip club after it allegedly published their images without consent. The models claimed the unauthorized postings created the false impression that they had agreed to promote the insured business, Club O, which harmed their image, brand, and marketability. The models also alleged that the club was negligent in failing to adopt and implement policies and procedures to prevent the misappropriation of images.…

Continue Reading Insurer Must Bare All and Defend Strip Club Against Infringement Claims

On November 25, 2020, an Illinois federal judge ruled in Grinnell Mutual Reinsurance Co. v. S.B.C. Flood Waste Solutions, Inc., that an Iowa based insurance company must continue to defend a waste disposal company in an underlying trademark infringement and defamation lawsuit.
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Continue Reading General Liability Insurer Must Defend Trademark and Other IP Claims

On November 19, 2020, a Delaware judge ruled in Indian Harbor Ins. Co. v. SharkNinja Operating LLC, et al., that insurer Indian Harbor must defend SharkNinja against underlying patent infringement and false advertising claims despite a patent infringement exclusion.
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Continue Reading Insurer Ordered to Clean Up Robot Vacuum Cleaner’s IP-Related Suit

A Florida district court recently held that an insurer wrongfully refused to defend a Miami-based strip club in a lawsuit filed by 17 models claiming that the club used their images to promote its business without their authorization. The insurer was required to defend the club for allegations of defamation under the policy’s personal and advertising coverage even though 16 of the 17 plaintiffs’ claims alleged conduct outside the covered policy period and no plaintiffs brought a cause of action for “defamation.” The decision highlights the broad duty to defend, in Florida and elsewhere, that policyholders should emphasize when pursuing coverage.
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Continue Reading Miami Strip Club Entitled to Coverage for Models’ Defamation Lawsuit

A federal court in Pennsylvania has held that Liberty Mutual must defend its insured, Hershey Creamery Company, in an intellectual property infringement lawsuit because the suit raises claims that potentially implicate coverage under the policies’ personal and advertising injury coverages. The court further found that the alleged wrongful conduct was not subject to the policies’ IP infringement exclusion.
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Continue Reading IP Lawsuit Triggers Insurers’ Duty to Defend

The Massachusetts Supreme Judicial Court recently construed the undefined term “advertising idea” in a case of first impression in the Commonwealth, holding that a footwear company’s insurers must provide a defense against an underlying claim alleging unfair use of a former Olympian’s name to promote a line of running shoes.
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Continue Reading Massachusetts High Court Says Use of Olympian’s Name Is Covered “Advertising Idea,” Not An Excluded IP Violation

A Colorado district court held last week that a general liability insurer must defend a product disparagement claim despite a broadly-worded intellectual property exclusion in the policy. The court reached its ruling even though the alleged disparagement involved representations about patent infringement. In so holding, the court rejected the insurer’s attempt to deny coverage where the “crux of the dispute” fell within the policy’s personal injury coverage part and the insurer had failed to show that the underlying allegations “unequivocally” fell within the ambiguously worded exclusion.
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Continue Reading District Court Unlocks Carrier’s Duty to Defend Key Maker’s Product Disparagement Claims

In June, Syed S. Ahmad and Jennifer E. White published an article in Risk Management Magazine about how commercial general liability (CGL) policies may help with trademark infringement litigation, despite common exclusions. A recent federal court opinion out of California conforms with the precedent we described in that article, holding that the insurer, Great Lakes Reinsurance (UK) PLC (“Great Lakes”), is required to defend In and Out Fashion, Inc. (“IOF”) in a trademark suit filed by Forever 21, Inc. (“Forever 21”). The fashion giant alleged that IOF essentially sold Forever 21 products as its own by obscuring or removing Forever 21’s marks. IOF requested that its CGL insurer, Great Lakes, defend it in the underlying suit. The relevant CGL policies covered damages because of “personal and advertising injury,” defined to include “infring[ing] upon another’s copyright, trade dress or slogan in your ‘advertisement’.” The policies excluded damages arising from trademark infringement and, according to the insurer, did not cover copyright, trade dress or slogan infringement in non-“advertisement” mediums. Great Lakes refused to defend IOF, and sued for declaratory relief regarding its obligations under the policies.
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Continue Reading Forever 21 Suit Cut from “Potentially Covered” Cloth: Alleged Copycat’s Insurer Required to Defend Trademark Litigation with Affordable Fashion Behemoth

On Tuesday, Syed Ahmad and Jennifer White published an article in Risk Management magazine about how commercial general liability (CGL) policies may help policyholders looking to recover attorney’s fees or fund settlements in trademark infringement litigation. Historically, like the Johnny Lee song “Lookin’ for Love,” CGL policies were the wrong place to look for coverage,…