You launch a new course using the “5-Step Freedom Method.” Your former mentor, who taught you a similar 5-step method, sues you for Copyright Infringement and Theft of Trade Secrets, claiming you stole her proprietary framework.
Key Takeaways
- Copyright vs. Method: You cannot copyright a “method” (an idea), only the specific expression of it (text, graphics). But you can be sued for it anyway.
- Media Liability: Standard Professional Liability often excludes IP disputes. You need “Media Liability” coverage to defend against Copyright/Trademark suits.
- The “Prior Knowledge” Trap: If you knew the mentor claimed ownership before you bought the policy, it’s a “Prior Act” and excluded.
- Infringement Defense: Defense costs are huge ($100k+). You need insurance primarily for the lawyer, not the settlement.
The “Why” (The Trap): The IP Exclusion
I reviewed a standard consultant policy.
“Exclusion: Intellectual Property Rights.” It states they won’t pay for claims alleging infringement of patent, copyright, trademark, or trade secret.
Why? Because stealing ideas is considered an intentional business decision, not an accidental slip-and-fall. You need a specific “Media Liability” endorsement to fill this gap.
The Investigation: Defending Your Content
I checked policies for “Content Creators.”
1. Hiscox (Media Liability)
- My Analysis: They offer specific coverage for “Infringement of Copyright.”
- The Verdict: If you are creating courses, you need this. It defends you if you accidentally use a photo or a framework that is too similar to someone else’s.
2. The Hartford
- My Analysis: Their “Personal and Advertising Injury” covers some copyright issues in advertisements, but not necessarily in your product (the course itself).
3. Professional Liability (E&O)
- My Analysis: Some high-end E&O policies cover “Plagiarism.” Check the definition.
Comparison Table: IP Defense
| Policy Section | Covers Marketing Copy? | Covers Course Content? | Covers Trade Secrets? |
| Advertising Injury | Yes | No | No |
| Media Liability | Yes | Yes | Yes |
| Standard E&O | No | No | No |
[IMAGE: Graphic showing ‘Fair Use’ vs ‘Infringement’ checklist]
Step-by-Step Action Plan
- Rename Your Method: If the names are identical, change yours immediately.
- Compare the Materials: Put your workbook next to hers. Is it a copy-paste? If so, you are liable. If it’s just the “concept,” you have a defense.
- Call Carrier: Report the “Cease and Desist” letter immediately.
- Hire IP Counsel: Don’t use a general lawyer. IP law is specific. Your insurance (Media Liability) will assign a specialist.
FAQ Section
Can I use the same concepts?
Ideas are free. The expression (words/images) is protected. You can teach the same concept in your own words.
What if I gave credit?
Giving credit doesn’t avoid infringement. If you don’t have a license to use it, saying “Source: Mentor” is just admitting you used it.
Is a framework a Trade Secret?
Only if it was kept secret (e.g., inside a signed NDA program) and you leaked it. If it was public on her website, it’s not a trade secret.