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Theodore Baroody Guest Column in Law360: Hyundai's Case For Coverage Of A Patent Suit
Theodore G. Baroody
Law360, New York (September 30, 2010)
Carmaker Hyundai Motor America recently engineered insurance coverage for a patent infringement defense of its website. The Ninth Circuit Court of Appeals held that the “advertising injury” clause of Hyundai’s insurance policies covered the cost of defending a patent infringement lawsuit brought in the Eastern District of Texas by patent holding company Orion IP LLC.
Orion IP accused Hyundai of infringement based on its build-your-own (BYO) vehicle feature on Hyundai’s website. Hyundai Motor America v. National Union Fire Ins. Co., et al., __ F.3d __ (9th Cir., April 5, 2010).
Orion IP asserted U.S. Patent No. 5,367,627 (the ‘627 patent) and U.S. Patent No. 5,615,342 (the ‘342 patent) against hyundaiusa.com and hyundaidealer.com. The patents claim methods of creating customized proposals using a computer to sell parts or vehicles.
This article is excerpted from a Law360.com guest column. To read the full text, please click here (subscription required).