Patent

Patent - Insurance Coverage Advice and Litigation

Gauntlett & Associates is a trailblazer whose attorneys have set precedent throughout the United States compelling insurance companies to pay client legal expenses incurred in defending patent, infringement lawsuits. It is presently representing a number of major corporations either evaluating, negotiating or litigating claims for insurance recovery for select business method patent infringement claims where his clients "occurrence" based commercial/umbrella/excess insurance coverage predate the inception of express patent infringement exclusions.

Representative Cases:

Homedics, Inc. v. Valley Forge Ins. Co., No. SA CV 99-0928 DOC (ANx), 1999 WL 33301457 (C.D. Cal. Oct. 29, 1999) (Ownership rights to patent conveyed "title" which was allegedly infringed by Homedics' use in advertisements of similar products to those Nikken maintained rights to exclude others from offering for sale. This advertising conduct was an "infringement of title" triggering "advertising injury" coverage.).

Bradleys' Electric Co., Inc. adv. Cigna Lloyds Ins. Co., 993 S.W.2d 673 (Tex. Ct. App. 1998) (On May 14, 1998 Justice Linda Reyna Yanez filed an Opinion on Motion for Rehearing, finding that the case was improperly transferred. The judgment of the trial court was reversed and the case was remanded with instructions that it be returned to Harris County. On June 10, 1999, the Supreme Court of Texas, in an opinion styled as Bradleys' Electric, Inc. v. Cigna Lloyds Ins. Co., 995 S.W.2d 675 (Tex. 1999), granted Bradleys' Electric's, Cigna Lloyds', United National's, and Texas Pacific's petitions for review, and without hearing oral argument, reversed the judgment of the court of appeals and remanded the case for a determination of the rendition issue. The court found that the court of appeals erred by not deciding the rendition issue before the remand issue.).

Land & Sky, Inc. adv. Union Ins. Co., 247 Neb. 696 (1995) (The Nebraska Supreme Court, the first state supreme court to address coverage for patent infringement issues, found that the insured was entitled to a defense for claims of inducing patent infringement of a waterbed patent. The court, applying Nebraska law, found that no Nebraska public policy intruded to avoid coverage for claims of inducing patent infringement.

It also found that piracy could encompass patent infringement and that a causal nexus could arise between claims of inducement and the insured's advertising activities. There was separate evidence that various farmers used the bladder (i.e., bag) to carry water in the back of pickup trucks. Based on the advertisements, the preferred use, which led to infringement (i.e., use of the bag in an assembled waterbed), was the cause of injury to the patent owner.).

Arbek Mfg., Inc. v. Select Ins. Co., 28 U.S.P.Q.2d (BNA) 1435, 1993 WL 528182 (C.D. Cal. Aug. 31, 1993) (Claims of inducement of patent infringement through promotion of furniture as a receptacle for liquid containers that, combined with water, created an infringing waterbed, triggered a defense. Furniture advertising emphasized its use for waterbeds, thereby making Arbek's advertisements a basis for its potential patent infringement liability.).

Omnitel v. Chubb Group of Ins. Companies, 26 U.S.P.Q.2d (BNA) 1933, 1993 WL 438839 (Cal. Super. Ct. Mar. 26, 1993) (Modem distributor sued by Hayes for inducing infringement through its dissemination of advertisements and manuals procured a defense under 1976 ISO CGL policy language including coverage for "advertising injury" offenses of "piracy" and "unfair competition" which the court found could encompass the patent infringement claims at issue or liability for "unfair competition" if the former tort was not established at trial. Without its advertising, Omnitel's product was merely a standard modem box with which a pair of users could use any communications protocol - among which Hayes' patented method of including codes in communications between computers was only one possibility.).