Travelers Must Cover Scholastic's IP Suit Costs, Not Damages

By Editorial Team

A Manhattan federal judge has ruled that a Travelers unit must cover Scholastic Inc. for costs incurred in its defense and settlement of a trademark and copyright infringement suit, but not pay consequential damages Scholastic had sought.

The ruling came from U.S. District Court for the Southern District of New York Judge Jesse M. Furman.

According to the court documents, the case involved a trademark and copyright infringement suit where Scholastic Inc. sought coverage from its insurer, a Travelers unit, for the costs incurred in defending and settling the case. The court ruled in favor of Scholastic Inc., stating that the insurer must cover the costs but not the consequential damages sought by the company.

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