Agent not responsible for uncovered patent infringement claim against farmers
Intellectual property rights exposures can affect a surprising variety of clients. Farm agents may be surprised to learn that they may have an exposure if they don't talk to their clients about this risk.)
A seed seller in Tennessee brought a claim against a group of farmers for patent infringement and breach of contract. In their operations, they routinely saved seed from their cotton and soybean crops and planted them in subsequent years. The seed seller alleged that the farmers “knowingly and intentionally used, saved, transferred, made, sold and/or offered for sale” the patented seed.
The farmers' insurer refused to defend under its farm liability policy, saying its policy did not cover patent infringement. The farmers sought a declaratory judgment against the insurer. They did not contend that their policy would protect them against liability for damage to intangible, intellectual property, but they asserted the seed seller's claim was covered under other policy provisions:
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