New England Patriots Owner Alleges Insurer Fumbled Media Liability Claims

Kraft Sports and Entertainment, owner of the NFL’s New England Patriots, has sued Hiscox Insurance alleging the insurer has failed to respond under media liability insurance policies to multiple claims of copyright infringement brought against the sports company.

Kraft Sports, which also owns a soccer team and other sports businesses, said it has been regularly notifying Hiscox of multiple alleged claims for possible infringement since January 2021 and has received only sporadic and inconsistent responses for 18 months until as late as this past August.

According to the complaint, after delays, Hiscox has denied some of the claims, then withdrawn some of its denials with reservations of rights, and committed to participating in the defense but then not followed through on that or other promises. The insurer has not responded to Kraft’s requests for settlement authority or requests for it to participate in mediation over coverage, the complaint further alleges.

“Hiscox has abandoned its insureds by breaching and repudiating its insuring obligations,” the complaint states.

The case was originally filed in state court but has been removed to federal court in Massachusetts, where Kraft is headquartered.

The media liability policies Kraft purchased from Hiscox have a $5 million limit with a $50,000 per claim retention.

The Kraft complaint does not identify the nature or source of the infringement claims or the grounds for denials cited by Hiscox.

Requests to lawyers for Kraft and Hiscox for more information were not answered by press time.

Kraft is seeking a judicial order that Hiscox is obligated to participate in the defense and settlement of the alleged infringement claims and is obligated to pay or reimburse Kraft for amounts paid or incurred. The sports firm also wants an order that Hiscox has waived its rights under the alternative dispute resolution provision of the policies. It is also asking for unspecified damages.

The attorney for Hiscox asked the court for an extension until November 11 to answer the complaint as it is still reviewing the multiple infringement claims brought against Kraft.

The exact nature of the claims against Kraft is unknown. It is possible they are similar to those brought recently against other sports organizations over creative content.

In 2020, CBS reported that the music industry was stepping up its monitoring of the use of unlicensed music and videos by sports teams in social media postings and that one NFL team, the Arizona Cardinals, had reached a settlement over such claims. While teams may have licenses to use certain media content in their stadiums, they may not have agreements to use them on social-media, according to the report.

NBC and the NFL have been sued over their use of the 1988 hit song “Rocket 2 U” during a Sunday Night Football broadcast, according to Billboard Magazine.

Also, NBC and two U.S. figure skaters have been accused by composers Heavy Young Heathens of violating copyright law by using their song, “The House of the Rising Sun,” without permission in a program at the 2022 Winter Olympics in Beijing, Reuters reported.

Topics Carriers Claims