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The California Court of Appeal, Second Appellate District, found that an insurance company wasn't obligated to defend an insured record company in a lawsuit filed against the label by one of its recording artists. The Oglio Entertainment Group Inc. v. The Hartford Casualty Insurance Co., B224156. Comic lounge singer Richard Cheese (a.k.a., Richard Davis) had sued Oglio over an offer of a low advance on a second album and for then hiring other artists to record in his style. Hartford refused to defend Oglio under an insurance policy the record company had with Hartford. Oglio and Cheese later settled their case, and Oglio sued Hartford. The insurance policy covers certain types of advertising injury claims. The court of appeal noted: “The policy language defines advertising injury as an injury arising out of '[c]opying, in your 'advertisement,' a person's or organizations 'advertising idea' or style of 'advertisement.' Davis's complaint alleged that Oglio sought out other recording artists to record lounge-style versions of popular songs, and released the Competing Albums by Bud E. Luv and Jaymz Bee & The Deep Lounge Coalition while the recording agreement was in effect ' diverting sales away from Davis's album and reducing the value of Davis's professional name, Richard Cheese. This does not allege that Oglio copied, in an advertisement, Davis's advertising idea or style of advertisement ' [T]he policy defines advertisement as the widespread dissemination of information or images with the purpose of selling a product, and the complaint alleged that Oglio copied Davis's product.”

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