April 19, 2010

Our customer is insured with Westfield Ins. Co. under a CGL policy, 2007 edition. They have entered into a license agreement to use a software package. Over the course of a few years, with the knowledge of the software company’s support staff, the insured has written and integrated applications into the software. Recently, the software company accused the insured of “copyright infringement” and is making an exorbitant monetary demand. Your thoughts regarding coverage? We extensively researched the “infringement” exclusion and “breach of contract” exclusion under Coverage B and are not seeing how we can even trigger a duty to defend. We think the claim is bogus, but will be expensive nevertheless.

Kentucky Subscriber