Hershey Creamery Covered for Milkshake Machine Patent Dispute

Liberty Mutual Fire Insurance Co. has a duty to defend Hershey Creamery Co. against patent and trademark infringement claims over the design and marketing of a milkshake machine.

The allegations against Hershey triggered Liberty’s defense duty because the infringement claims may fall within the policy’s advertisement-related coverage, the U.S. District Court for the Middle District of Pennsylvania said May 6.

The court rejected the insurer’s argument that none of the allegations in the complaint implicates infringement of intellectual property in an “advertisement.”

The insurance policy excludes coverage for injuries stemming from intellectual property infringement, but provides coverage for injury from ...