Seventh Circuit Finds Insurance Company Has Duty to Defend Against Trademark Infringement

In Santa’s Best Craft, LLC. v. St. Paul Fire & Marine Ins. Co., 2010 U.S. App. LEXIS 13470 (7th Cir. July 1, 2010), Santa’s Best Craft, LLC (SBC) sought a decision requiring its insurance company St. Paul Fire & Marine Ins. Co. (St. Paul) to defend SBC against a charge of trademark infringement brought by JLJ.  JLJ alleged that SBC copied JLJ’s “Stay Lit” lights packaging design, and specifically that SBC sold Stay-On lights using false and deceptive language.  As such, JLJ sued SBC for trademark infringement, false designation of origin, false advertising, trademark dilution and deceptive trade practices. SBC asked its insurer, St. Paul, for a defense citing the coverage for advertising injuries included in its Commercial General Liability (CGL) policy.