In Acuity v. Bagadia, 2008 WL 2439653 ( Wis. ), the Supreme Court of Wisconsin ruled that Acuity Mutual Insurance Co. must pay an almost $1 million claim by Unik Associates. Unik and its owner, Kishan Bagadia, were ordered by a federal court in Oregon in 2005 to pay $958,253.40 to Symantec Corp. for unauthorized distribution of some computer programs owned by Symantec.
Acuity, which provided Unik with business insurance, claimed it was not responsible for paying the judgment because the policy covered advertising, and the actions Unik engaged in did not include that. In particular, it claimed that samples sent out by Unik to potential clients did not meet the definition of advertising.
The lower courts disagreed with Acuity and ordered it to pay the claim. The supreme court upheld the decision.
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