Superior Court - TRANSCORE, LP, F/K/A TRANSCORE, INC., TRANSCORE HOLDINGS, INC., AND AMTECH SYSTEMS, LLC, F/K/A AMTECH SYSTEMS CORPORATION v. CALIBER

TRANSCORE, LP, F/K/A TRANSCORE, INC., TRANSCORE HOLDINGS, INC., AND AMTECH SYSTEMS, LLC, F/K/A AMTECH SYSTEMS CORPORATION v. CALIBER ONE INDEMNITY COMPANY, PMA REINSURANCE CORPORATION AND PMA CAPITAL CORPORATION No. 3352 EDA 2007 2009 PA Super 81 Atlantic: 972 A.2d 1205 Petition for Reargument Denied 6/30/2009 Filed: 4/27/2009
	Appeal from the Judgment entered November 5, 2007 in the Court of Common Pleas of Philadelphia County, Civil, No. 002657 October Term, 2005
Before: KLEIN, SHOGAN, JJ. and McEWEN, P.J.E.
Opinion by: KLEIN, J.
In this declaratory judgment action, Caliber One Indemnity Company (Caliber) appeals from the judgment ordering it to reimburse TransCore, LP, F/K/A TransCore, Inc., TransCore Holdings, Inc, and Amtech Systems, LLC, F/K/A Amtech Systems Corporation (Amtech) $822,981.95 for legal fees Amtech incurred in defending itself against a patent infringement claim brought not by a customer, but by another vendor. The insurance policy issued by Caliber covered, in relevant part, professional liability. For two reasons, we reverse and direct that judgment be entered in Caliber’s favor. First, because we find that a patent infringement action brought by another vendor is not a “professional liability” action under the terms of the policy. Second, this is an action for inducing a third party to violate a patent, not a direct patent infringement action. Because that patent action can only be brought if the violation is knowing, and there is an exclusion in the police for “knowing” actions, there is no coverage for this action.

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