Insurers target new media liability - 1997-10-01
In another case, the Church of Scientology sued Netcom for copyright infringement after an individual used the ISP to publish allegedly infringing materials on the Net. The Church of Scientology and Netcom ultimately settled the case.
Neither case resulted in a judgment against the companies, but both likely faced hundreds of thousands of dollars in legal fees, attorneys estimate.
To help companies manage their risks, insurance companies are now offering insurance that will cover attorneys fees and potential judgments that arise from lawsuits against the services. In many cases, coverage will extend to those who provide content, such as forum hosts and system operators.