A California-based advertising company is taking an insurer to court after it refused to defend the company in a trademark lawsuit. Ad.com Interactive Media, also known as AdMedia, claims Gemini Insurance Company wrongly denied coverage in a case filed late last year.
The original lawsuit, brought by Shopnomix LLC and Pronomix.AI LLC, accused Ad.com of using trademarks owned by the Nomix Group without permission. The claims include trademark infringement, unfair competition, and cybersquatting. When Ad.com asked Gemini to handle its defense in December 2025, the insurer declined the following month.
Gemini’s refusal is based on a claim that the lawsuit is related to an earlier Shopnomix case, which was never reported under a previous policy and occurred before the current coverage began. Ad.com disagrees, saying the two cases are different in facts and legal claims and should not be linked.
At the heart of the dispute is how the insurance policy defines a "wrongful act." It covers errors, omissions, or professional mistakes tied to the services the company offers. Ad.com argues this should include the trademark claims it now faces. There’s also a rule in the policy that requires the insurer to defend claims involving intentional misconduct until intent is proven in court. Since the accusations of willful infringement have not been legally confirmed, Ad.com says Gemini cannot refuse coverage based solely on those allegations.
Another key point comes from California’s notice-prejudice rule. This law means insurers can’t reject a claim just because the notice came in late—they have to prove the delay hurt them. Ad.com asserts Gemini has not shown any actual harm.
The lawsuit, filed on March 4, 2026, asks the court to declare Gemini’s duty to defend Ad.com. It also accuses the insurer of breaching the contract and violating the implied promise to act in good faith. Ad.com says it has already spent over $75,000 defending itself and wants that money back with interest.
The case is still in its early days, with no decisions made yet. The dispute highlights challenges insurers face when denying coverage based on “related claims.” It also shows how insurance and intellectual property issues overlap more and more in our digital world.
The full case is Ad.com Interactive Media, Inc. v. Gemini Insurance Company, Case No. 2:26-cv-02300, in the U.S. District Court for the Central District of California.