A Third Circuit decison interpreting the advertising injury provision of a commercial general liability insurance policy, holding that the insurer is obligated to pay for the insured’s defense against trademark infringment involving misuse of a domain name.  A plainitff had alleged that the insured had infringed its trademark in MAGAZINES.COM by utilizing MAGAZINE.COM to send traffic to an adult entertainment site.

Held: The allegation of mis-use of the domain name constitutes misappropriation of an advertising idea or style of doing business under Pennsylvania law..

Cat Internet Services v. Providence Washington Insurance Co., No. 01-4166 (3d Cir June 17, 2003) (note: this decision came out in November as non predental and has now been made precedental).

A previous piece on advertising injury insurance here.