Trademark Exclusion Clause In Insurance Policy
The interpretation of the trademark exclusion clause does not cause the insuring agreement, insofar as it covers "injury arising out of . . . piracy or unfair competition," to make an empty promise.
Many situations remain potentially covered, as may be seen from the following examples found in the Restatement. "A and B are plumbing firms.
A has a contract to provide plumbing services to the University of Nebraska. B falsely represents to prospective customers that it is the firm that does the plumbing work for the University. B is subject to liability to A." ( Rest.3d Unfair Competition, 4, illus. 1, p. 51).
"A designs dresses and sells the designs to dress manufacturers. B, a dress manufacturer, C, a wholesaler, and D, a retailer, sell dresses to their respective customers with the false representation that the dresses were designed by A. B, C, and D are subject to liability to A." (Id., 4, illus. 3, p, 51).
"A manufactures baseball gloves. In its advertising, a uses without consent a photograph of B, a famous baseball player, in a manner that falsely implies that B endorses A's product. a is subject to liability to B . . . ." (Id., 4, illus. 5, p, 51; see cases cited in id., 4, rptr.'s notes, p. 55).