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Google AdWords don't infringe Trade Mark law

23 September 2009

Google has been offering advertisers the right to buy keywords corresponding to well known trade marks. These AdWords allow businesses to ensure their web page appears whenever a relevant keyword is used by someone using Google's search engine.

French luxury brand Louis Vuitton objected to such advertising on the basis that its name and reputation were being used by other brands to promote their own sites.

The key question was whether Google had the right to sell AdWords in the form of brand names for the purposes of internet search advertising.

Advocate General’s opinion

The Advocate General has published an opinion that Google has not infringed trade mark rights for the following reasons:

What does this mean?

It appears from the Advocate General’s ruling that those whose trade marks carry with them a reputation will have a tougher job in arguing that Google has caused damage to their trade mark purely as a result of AdWords.

The trade mark owner will have to be able to point to a specific instance where the association with a third party has caused damage to their trade mark, beyond mere use of a keyword.

In light of this opinion, the value of the sponsored link to brand owners may be diminished; if anyone can use a brand name as a keyword, the public may end up discounting the relevance of the sponsored link as they will know it is not really associated with the brand they are looking for.

Of course the flipside is that Google searches will just become pages and pages of sponsored links, as search engine hits can be very lucrative business. Can brands afford to miss out?

What should you do?

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