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Hyundai Motor America v. National Union

By Maximilian A. Grant, Christine G. Rolph, Clement J. Naples and Gregory K. Sobolski
August 26, 2010

Defendants in patent infringement actions have new reason to scrutinize their Commercial General Liability (“CGL”) insurance policies. On April 5, 2010, the Court of Appeals for the Ninth Circuit held that allegations of patent infringement involving a method of advertising constitute “advertising injury,” triggering an insurer's duty to defend a patent infringement suit. Hyundai Motor Am. v. Nat'l Union Fire Ins. Co. of Pittsburgh, PA, No. 08-56527 (9th Cir. Apr. 5, 2010). Hyundai is the first case to find under California state insurance law that patent infringement allegations constitute advertising injuries covered by a CGL policy. This decision may have significant implications for insurers and defendants in patent actions related to methods of advertising.

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