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Insured loses slogan infringement coverage dispute

Coverage depends on whether the underlying claims allege slogan infringement, triggering Praetorian's duty to defend and indemnify the insured.

By Steven A. Meyerowitz, Esq., Director, FC&S Legal | Updated on August 11, 2015
Most insureds aren't sure of the differences between trademarks and slogans, and what is covered in an infringement claim. (Photo: Shutterstock/filmfoto)

Auto Mobility Sales, the insured, sells and rents handicap-enabled vehicles. Florida Van Rentals, d/b/a Discount Mobility USA and Medical Travel, filed a lawsuit against Auto Mobility alleging claims of unfair competition and trademark infringement for using the terms “discount mobility” and “medical travel” in advertisements.

Auto Mobility was insured under a general liability policy issued by Praetorian. This policy applied to damages because of personal and advertising injury but excluded coverage for infringement of copyright, patent, trademark, or secret. An exception to the exclusion allowed coverage for infringement in the named insured’s advertisement, of copyright, trade dress, or slogan. When the insured was sued, it sent the complaint to Praetorian, but the insurer declined coverage, asserting that the policy excludes the trademark infringement claims made by Florida Van Rentals.

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