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Insurance Coverage In Trademark Disputes
On Aug. 20, 2014, summary judgment was granted to the plaintiff insurance company, upholding its denial of coverage to indemnify judgments in two trademark counterfeiting cases. United States Fidelity & Guarantee v. Ashley Reed Trading, 'F. Supp. 2d', 2014 WL 4160218 (SDNY). The opinion provides insight to trademark practitioners about insurance coverage and provides information about strategies for trademark owners' enforcement efforts.
The Facts
Ashley Reed Trading and its principals, Scott and James Ressler, are well-known to the trademark counterfeiting bar. They have been sued by a number of trademark owners for counterfeiting activities (including Gucci, Tommy Hilfiger, Polo, and Fendi). The United States also sued them in a civil action for unlawful importation of counterfeit goods, and James Ressler was a defendant in two criminal cases brought in the Northern District of Georgia related to the importation of counterfeit goods, eventually pleading guilty to the charges in one of them.
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