This is the question being litigated in a high-stakes cyber insurance coverage dispute between global snack food giant, Mondelez International, and its insurer, Zurich American Insurance Company, in Illinois state court. “NotPetya” was a 2017 ransomware attack in which infectious code impacted a number of global corporations, including Mondelez, encrypting computer hard drives and demanding payment for access to the data. Mondelez claims that it suffered damage to its hardware and operation software systems valued in excess of $100 million as a result of the attack. In early 2018, the U.S. and its allies publicly attributed the cyberattack to the Russian government. Russia denied the allegations. Modelez submitted an insurance claim to Zurich under an all-risk property insurance policy. Mondelez alleges that Zurich denied the claim based on a policy exclusion that excluded coverage for “loss or damage directly or indirectly caused by or resulting from … [a] hostile or warlike action … by any government or sovereign power … or agent or authority [thereof].” In October 2018, Mondelez filed suit against Zurich in Cook County, Illinois to determine whether the exclusion applies. According to the docket the case is currently pending, and working its way through the discovery process.
This case is being closely watched by corporations and insurers alike as it may have broad implications on cyberattack coverage for both traditional and specialized cyber insurance policies that contain the same or similar exclusions. What evidence will the insurer present to seek to prove that this war exclusion applies?
Pieces by Brian Corcoran on Lawfare (here) and Jeff Sistrunk on Law360 (here) each contain in-depth discussions of the case and its potential implications on the cyber insurance market. The docket for the case can be found here (select the Law Division and enter Case Number 2018-L-011008).
Posted by R. Brandon McCullough attorney at Houston Harbaugh, P.C. 401 Liberty Avenue, Pittsburgh, PA 15222. Brandon concentrates his practice primarily in the areas of insurance coverage and bad faith litigation, complex commercial and business litigation and appellate litigation. Please contact Mr. McCullough at 412-288-4008 or firstname.lastname@example.org any questions pertaining to this article or any other legal matters.
@Proskauer Rose Attorney Steve Kayman and Judicial Law Clerk Lauren Davis published this opinion piece on Law 360 to all of whom we acknowledge their copyright protection.http://tinyurl.com/yaaonlmd “A Call for Nationwide Consistency on Noncompetes” rightly urges for more consistency in the construction and application of laws on Restrictive Covenants and Non-Competes in employment agreements and in the workplace. The authors correctly point out the difficulty that lawyers have in advising corporations, particularly large ones, about the enforceability of restrictive covenants especially when the business and/or employee have interstate commerce. Some states are essentially outlawing non-competes and if an employee leaves one state to work in another, the choice of law and jurisdiction issues generally erupt in any litigation. Kayman rightly points out that courts are looking to extra contractual facts to assist in making a breach of contract decision in lawsuits over these agreements. Finally – Kayman and Davis suggest a possible parallel between this issue and the Defend Trade Secrets Act (DTSA) which has now created a federal remedy for misappropriation of trade secrets. Trade secret claims are often paired with non-compete claims so this parallel, and new federal legislation might be the solution. The law on these issues is clearly in a state of flux. We thank Kayman and Davis for this opinion piece.
Posted by Henry M. Sneath, EsquireCo-Chair Litigation Practice Group and Chair of the IP Practice Group: Houston Harbaugh, P.C.401 Liberty Avenue, Pittsburgh, Pa. 15222. Sneath is also an Adjunct Professor of Law teaching two courses; Trade Secret Law and the Law of Trademarks and Unfair Competition at Duquesne University School of Law.Please contact Mr. Sneath at 412-288-4013 email@example.com.
Blackberry is still in the hunt. I have one. I need the keyboard. Can’t seem to make even my skinny fingers hit the virtual keyboard letters and numbers on an iPhone. I get teased by my kids. People on airplanes pull out their Blackberrys and say “Hey – you’re a dinosaur too.” However, look at Blackberry now flexing their patent muscles and suing Facebook, WhatsApp and Instagram. Take that big boys. Thanks to Steve Brachmann and IPWatchdog for bringing us the story at this link: http://tinyurl.com/y9drr6hk . Blackberry pleads pre-emptory claims that seek to avoid dismissal per §101 “Alice” defenses. This “getting ahead of 101” in pleading is becoming the rage in patent suits. Great article. Thanks IPWatchdog.
Walmart has applied for a Drone Pollinator presented in the recently published application as “Systems and Methods for Pollinating Crops Via Unmanned Vehicles.” Here is Application # US2018/0065749 A1 at this link from FreshPatents.com: http://images2.freshpatents.com/pdf/US20180065749A1.pdf
The PTO App abstract describes essentially the same process used by Bees, and scientists at Walmart, Harvard and many other institutions have been working to create an efficient way to pollinate many of the plants from which we get our food during the last two decades of declining bee populations. Here is a good article from Science Alert detailing and linking to some of the efforts to create a drone pollinator:http://tinyurl.com/y93a7z7y
Here is a photo of the Harvard latest edition drone “RoboBee” which allegedly cannot yet be remotely controlled. The Walmart patent claims such an ability. We will follow.
Posted by Henry M. Sneath, Esq. at HoustonHarbaugh, P.C. in Pittsburgh, Pa.
From our friends at Law.Com: In the growing market for cyber insurance, carriers are trying to compete on price. One carrier, Coalition is offering discounts if your company creates a partnership with a “white hat hacker” and establishes a bug bounty with that hacker. The hacker gets a bounty for finding vulnerabilities. Legal Tech author Rhys Dipshandetails the program in the article at this link: http://tinyurl.com/ydck3nxg
Dipshan reports that “bug bounties” are becoming a popular weapon in combating cyber attacks. “Unsurprisingly” Dipshan reports, “bounty programs are becoming increasingly common in the tech and corporate world, with companies such as Facebook, Microsoft and Uber offering compensation for vulnerability disclosures. They also have caught on in the federal government as well, with the Department of Defense launching its “Hack the Pentagon” and “Hack the Air Force” programs.” Do you need a cyber bounty hunter?
Pittsburgh based law firmHouston Harbaugh, P.C. has announced its merger with the former and preeminent litigation boutique Picadio Sneath Miller & Norton, P.C. (PSMN®) effective January 1, 2018. The merger creates a 43 lawyer firm with particular strengths in Business Law and Business Litigation, Employment, Employee Benefits/ERISA, Environmental and Energy Law, Estates and Trusts, Health Care, Insurance Coverage and Bad Faith Defense, Immigration, Intellectual Property, Oil and Gas, Products Liability and Catastrophic Injury Defense, Public Finance and Real Estate. This blog will feature posts on the law and litigation of Patent, Trademark, Copyright, Trade Secrets, Defend Trade Secrets Act (DTSA), Cyber-Security, Technology matters and updates on the tremendous growth of the technology sector in Pittsburgh. Houston Harbaugh is proud to be among the regional law firms which are poised to provide high level, efficient, cost effective legal services for the new Eds, Meds, Energy and Technology economy in Pittsburgh, Ohio and West Virginia.
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Contact our Pittsburgh Intellectual Property, Data Security, Trade Secret, DTSA and Technology Attorneys at Houston Harbaugh, P.C. through IP Section Chair Henry M. Sneath at 412-288-4013 or firstname.lastname@example.org. Some posts herein were published by the law firm Picadio Sneath Miller & Norton, P.C. (PSMN®) which has merged with HoustonHarbaugh, P.C. and are used by permission. DTSALaw® is a federally registered trademark. See Firm Website at: www.hh-law.com
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