Global Computing, Inc. v. Hartford Cas. Ins. Co., No. 05 C 6753, 2007 WL 844618 (N.D. Ill. Mar. 14, 2007) (Hibbler, J.).
Judge Hibbler granted defendant-insurer summary judgment that it had no duty to indemnify or defend plaintiff-insured. Microsoft brought suit against plaintiff alleging that plaintiff distrbuted counterfeit Microsoft software and used Microsoft logos in its advertising for the software, thus infirning Microsoft’s copyrights and trademarks. Plaintiff tendered the claim to defendant, its insurer, but defendant refused to defend plaintiff stating that its policy did not cover Microsoft’s allegations. After settling with Microsoft, plaintiff brought the instant suit alleging defendant breached its duty to defend and indemnify. The Court noted that by refusing to defend, defendant estopped itself from denying coverage for policy reasons if it breached its duty to defend. But because Microsoft’s alleged infringement of its copyrights and trademarks (which were exempted from coverage), instead of the use of Microsoft’s advertising ideas, the suit was not covered by the insurance policy.