An e-cigarette vendor has defense coverage because an Illinois
federal judge found that the party suing it "has a very thin
reed on which to rest a disparagement claim that is potentially
separate and distinct from its trademark infringement claims."
The Court recently found in favor of the e-cigarette vendor seeking
coverage for the defense of trademark related claims against it,
construing ambiguities in the policy in favor of the insured.
The language at issue is typical of language in the personal and
advertising injury coverage in commercial general liability
policies.
Brent Duke and 21 Century Smoking, Inc. (the e-cigarette vendor)
were sued by DR Distributors, LLC, CB Distributors, Inc., and
Carlos Bengoa in a trademark infringement and unfair competition
lawsuit. 21 Century put its insurer, Diamond State Insurance
Company, on notice and Diamond defended the insured pursuant to a
reservation of rights. After some time, the insurer filed a
declaratory
