National Union Fire Insurance v. Seagate Technology, Inc.

MEMORANDUM *

Seagate Technology, Inc. (“Seagate”) appeals the district court’s grant of summary judgment to its liability insurer American International Specialty Lines Insurance Co. (“AISLIC”) in this diversity action. Seagate argues that, pursuant to the Technology Liability Insurance Policy (“the Policy”) issued by AISLIC, AISLIC has a duty to defend Seagate in a lawsuit filed in the Southern District of New York against Seagate by Convolve, Inc. and the Massachusetts Institute of Technology (hereinafter collectively referred to as “Convolve”). We agree with Seagate and reverse.

Convolve has alleged acts by Sea-gate that fall within the Policy’s coverage. The policy covers wrongful acts by Sea-gate in its performance of “technology services,” defined to include marketing and selling, for others. Convolve’s complaint alleged that Seagate developed a competing technology in cooperation with, or at the request of, its customer Compaq Com *616 puter Corp., and that, “based on its press releases, Seagate is claiming that its technology performs the same functions as Convolve’s proprietary technology.” In an answer to an interrogatory, Convolve added that Seagate had embarked on a…