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Google Ogles More Permissive Ad Policy

By Douglas Wolf
June 01, 2004

The announcement in April by Google to revisit its Adwords trademark policy has already resulted in trademark litigation against the search engine giant in several countries. The decision by Google to allow third-party advertisers to purchase the rights to any keyword, even if those keywords are trademarks held by another, has become a hot topic for brand owners fearful of the potential business consequences.

Previously, Google would not allow these third parties to purchase trademarked keywords unless they had permission from the trademark owner. A trademark owner, such as Acme Company, could prevent others from buying the term “Acme” and being highly ranked on Google's “Sponsored Links” list ' a list along the right hand of its search results page. Under Google's new policy, advertisers are allowed to purchase “Acme” or other trademarked names, as long as the advertisement text presented in the “Sponsored Links” area does not confuse consumers.

In late April, AXA, one of the world's largest insurance companies, commenced an action in Paris against Google for sale of the AXA trademark in Google's Adwords service. Another insurance company, Geico, as well as a German company, Metaspinner Media, have also brought litigation against Google for sale of trademarks. These cases have yet to yield any significant rulings.

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