In Axelrod v. Magna Carta Companies, Axelrod sued its insurer for coverage in an underlying copyright infringement action. The plaintiff in the underlying action sued Axelrod for “reproducing, manufacturing and/or distributing” charms that the plaintiff had created. The underlying plaintiff attached a copy of Axelrod’s catalog as evidence that Axelrod had sold the infringing charms. The court found that because the underlying plaintiff did not allege harm based on the catalog itself, the claim was not an “advertising injury” under the policy.
Thanks to Cheryl Fuchs for her contribution to this post.