Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

Insurance Coverage for Trademark Infringement Lawsuits

By Richard D. Milone and and John W. McGuinness
July 29, 2009

Given the current economic climate, every company in America is looking to minimize legal costs. To that end, companies should be taking a closer look than ever at their existing insurance program as a means to cover legal fees in areas that they may not have considered previously. Standard liability insurance policies contain, in addition to the well-known bodily injury and property damage coverages, an often-forgotten section known as “advertising injury,” which affords coverage that too many companies overlook.

If a company has been sued for trademark infringement, it likely can obtain insurance coverage under the advertising injury section of its standard business liability policy, and this coverage includes the duty to pay the costs of defense. Insurers generally contend that no such coverage exists because their policies do not contain the word “trademark,” and all too often insurance brokers and corporate risk managers accept the insurers' position at face value and fail to press the issue any further. This is a costly mistake ' even when a case ends with no liability, defending a trademark infringement suit can cost upward of $1 million. Since the majority of cases to address the coverage issues have found coverage for defense costs and liability, companies that choose not to pursue coverage for trademark lawsuits are likely leaving money on the table.

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
New York's Latest Cybersecurity Commitment Image

On Aug. 9, 2023, Gov. Kathy Hochul introduced New York's inaugural comprehensive cybersecurity strategy. In sum, the plan aims to update government networks, bolster county-level digital defenses, and regulate critical infrastructure.

Law Firms are Reducing Redundant Real Estate by Bringing Support Services Back to the Office Image

A trend analysis of the benefits and challenges of bringing back administrative, word processing and billing services to law offices.

Bit Parts Image

Summary Judgment Denied Defendant in Declaratory Action by Producer of To Kill a Mockingbird Broadway Play Seeking Amateur Theatrical Rights

Risks of “Baseball Arbitration” in Resolving Real Estate Disputes Image

“Baseball arbitration” refers to the process used in Major League Baseball in which if an eligible player's representative and the club ownership cannot reach a compensation agreement through negotiation, each party enters a final submission and during a formal hearing each side — player and management — presents its case and then the designated panel of arbitrators chooses one of the salary bids with no other result being allowed. This method has become increasingly popular even beyond the sport of baseball.

One Overlooked Element of Executive Safety: Data Privacy Image

Executives have access to some of the company's most sensitive information, and they're increasingly being targeted by hackers looking to steal company secrets or to perpetrate cybercrimes.