Court Holds Trademarked and Service-Marked Title Coverage Encompasses More than the Names of Literary Works

When Villa Enterprises Management Ltd. ("Villa") was sued for its use of VILLA PIZZA(r), it sought coverage from Federal Insurance Company ("Federal"). Villa Enterprises Management Ltd. v. Federal Ins. Co., 360 N.J. Super. 166 (N.J. Super. Ct. 2002). Federal denied Villa a defense and indemnification, claiming its liability policy's "trademarked or service-marked title and slogan" coverage applies exclusively to infringement of the names of literary works. A New Jersey state court disagreed, holding Federal's interpretation renders its policy ambiguous and violates its policyholder's reasonable expectations. Id. at 185-87. The court observed that trademarks and service marks can be titles or slogans, but also can be emblems, color configurations, audible sounds or fragrances. Id. at 185. No reasonable policyholder, according to the court, would think it had coverage for infringement of Catcher in the Rye Bread(r), but not Wonder Bread(r). Id. at 186. The court, therefore, found that infringement claims involving any trademarked or service-marked names (literary or non-literary) are "titles" falling within Federal's policy, whereas infringement claims arising from other trademarked or service-marked words, symbols or devices are not covered. Id. at 186 & 190.