Patent Infringement Coverage

Insureds accused of infringing patents that are incorporated into the structure of a product will often make claim on their CGL policy for defense and indemnity claiming that patent infringement is an “advertising injury” covered under the Personal Injury Coverage of the CGL. As a subset of the Personal Injury Coverage for “advertising injury,” patent infringement claims are presented with greater frequency since the decline of “dot com” industries and the growth of consumer electronics and computer industries. 

In Green Machine Corporation v. Zurich-American Insurance Group, 313 F.3d 837 (3d Cir. 12/20/2002) the Third Circuit found no duty to defend a patent infringement claim where it was alleged that the insured made a concrete cutting machine in violation of another manufacturer’s patent.

Copyright Infringement Coverage

The CGL agrees to defend and indemnify an insured if the insured is accused of infringing a copyright as long as the infringement is tied to the advertising of the insured. When a symbol, word, or series of words that are protected by a copyright the person who uses the protected symbol, word, or series of words is subject to a suit for damages for copyright infringement.