California Court Finds Coverage for Patent Infringement Claims Under CGL Policies

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In Hyundai Motor America v. National Union etc. et al., No. 08-56527 (April 5, 2010) Hyundai Motor America was sued for patent infringement after placing certain “build your ownfeatures on its website. As a result, Hyundai sought a defense from liability insurers under a comprehensive general liability policies (“issued by National Union Fire Insurance Co. of Pittsburgh and American Home Assurance Co. Hyundai (“Defendants”) clathe alleged patent infringement concerned an advertising metand thus, the lawsuit alleged an "advertising injury" as defined in the insurance policy. The insurers disagreed and declined to defend Hyundai. Consequently, Hyundai represented itself in the underlying patent infringement action.

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