Patent Insurance Coverage--Get Ready for More Like This
The District Court of Minnesota settle a patent insurance coverage dispute in Carlson Marketing Group, Inc. v. Royal Indemnity Co., 2007 WL 951683 (D. Minn. 3/28/07).
From 1997 - 2003, Carlson purchased several layers of insurance coverage from Royal Indemnity (now purchased by Arrowhead) and National Union. Each policy had its own limitations and exclusions. In 2002, Carlson was sued by Maritz and Meridian Enterprises for patent infringement. Both insurers denied coverage, and Carlton ultimately settled both suits. Carlton then filed the present suit against both insurers.
All three parties filed motions for partial summary judgment, which were all granted in part and denied in part. Carlson was largely successful from this result, although National Union successfully argued that $5 million of the $16 million Meridian settlement was covered by its policy.
This case presents a new trend in intellectual property litigation. As more companies procure insurance for patents, trademarks, and copyrights, more insurance coverage disputes will arise. Cases like this one could become the norm rather than the exception. It is also important to note that no less than 16 lawyers are listed in the case syllabus.
