Coverage for DOJ Investigation Not Barred Because No Way to Determine Whether There Was Substantial Overlap with Earlier Lawsuits

A federal court in California has held that an investigation did not relate back to earlier lawsuits against the insured, nor was coverage barred by the policy’s prior or pending litigation exclusion, because the investigation was “shrouded in secrecy,” and it was therefore impossible to determine whether the investigation or allegations arose out of or were based upon the prior litigation.

Claim Asserting Innocence in Alleged Copyright Infringement “Arises Out of” Copyright Infringement and Triggers Exclusion

By | Executive Summary Blog | October 7, 2015

Applying Massachusetts law, the United States District Court for the District of Massachusetts has held that a policy exclusion for injury “arising out of” copyright infringement bars coverage for a lawsuit alleging that the claimant infringed the insured’s software copyrights, even in the absence of a claim for infringement by the insured.