Travelers Insurance Off Hook for $30M Trademark Claim: Court

August 28, 2014

Travelers Companies Inc.’s U.S. Fidelity & Guaranty doesn’t have to pay a $30 million judgment in a trademark infringement case against one of its insureds.

The insurance company filed suit in federal court against New York’s Ashley Reed Trading Inc., which had been found liable for selling counterfeit products that infringed the trademarks of the Italian luxury fashion house Fendi SpA.

Ashley Reed claimed that the insurer should pay the damages under the “advertising injury” section of the company’s liability policies.

U.S. District Judge Richard M. Berman in New York rejected that claim, saying the section of the policy doesn’t apply because Ashley Reed’s liability was based on the sale of counterfeit items rather than advertising them.

The case (embedded below) is U.S. Fidelity & Guaranty Co. v. Ashlem Reed Trading Inc., 1:11-cv-04782, U.S. District Court, Southern District of New York (Manhattan).

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