9th Circuit Rules that Advertising Injury Insurance Covers Patent Claim
This week’s Ninth Circuit decision in Hyundai Motor V. National Union Fire Ins. reminded me that advertising injury insurance coverage should be considered when a claim – that doesn’t seem to fit under any other coverage -- comes in to a business.
The court ruled that the insurer had a duty to defend Hynudai in a patent litigation because the patent infringement claim involved method of advertising used on Hyundai’s web site. Although the court referred to many other cases where advertising injury coverage had been rejected in patent violation claims, it examined the context of the claim and determined that it was implicated in this case. (A jury had found against Hyundai in the underlying case and awarded the patent holder $34,000,000 in damages. This suggests a pretty large defense bill.)
This claim was decided using California law, but the court noted that California law was essentially the same as that of Washington on this point.
