Legal Definitions - advertising injury

Advertising injury refers to specific types of harm or damage that can arise from a company's advertising, promotional activities, or published material. These harms are typically covered by certain commercial insurance policies and often involve claims related to:

• Defamation: Making false statements that harm someone's reputation (libel if written, slander if spoken).
• Disparagement: Making false or misleading statements about a competitor's products, services, or business practices.
• Violation of Privacy: Illegally using someone's name, likeness, or private information without their permission for commercial gain.
• Misappropriation of Advertising Ideas: Using another company's unique advertising concepts, slogans, or styles without authorization.
• Infringement: Unauthorized use of copyrighted material, trade dress (the visual appearance of a product or its packaging), or slogans in an advertisement.

Here are some examples illustrating "advertising injury":

• Example 1: Disparagement of a Competitor

  A new online electronics retailer launches a marketing campaign claiming that its main competitor's customer service is "notoriously slow and unhelpful, often leaving customers stranded for weeks." This statement is false and harms the competitor's reputation. If the competitor sues for disparagement, the new retailer's insurance policy might cover the legal defense and any resulting damages under its advertising injury clause.

• Example 2: Misappropriation of Likeness

  A local bakery creates a new series of advertisements featuring a picture of a well-known local food critic enjoying one of their pastries, implying an endorsement. However, the bakery never obtained the critic's permission to use her image or imply her endorsement. The food critic could sue the bakery for misappropriation of her likeness, claiming advertising injury because her image was used without consent for commercial gain.

• Example 3: Copyright Infringement in Advertising

  A small apparel company designs a new T-shirt line and uses a distinctive graphic pattern and a unique phrase in its online advertisements that are nearly identical to those of a much larger, established clothing brand. This creates confusion among consumers who might believe the smaller company's products are associated with the larger brand. The larger brand could sue the smaller company for copyright infringement and trade dress infringement related to its advertising, which would fall under the definition of advertising injury.