By Kenneth J. St. Onge
Insurance Journal

A document management company that allowed a client's sensitive documents to be taken is not covered by a professional liability policy with an intellectual property exclusion, the Massachusetts Supreme Judicial Court has ruled.

In September 2002, a Uniscribe supervisor authorized an employee working on the DirecTV project to bring his nephew to assist the Uniscribe employees in meeting Jones Day's deadlines. The nephew worked for approximately 10 days and was paid cash by his uncle, who recorded the nephew's hours as overtime. The nephew came across documents containing confidential trade secret information from DirecTV and sent that information to a Web site to help the "hacker" community.

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