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<i>WhenU</i> Helps Keyword Companies See Clearly

By Douglas Wolf
July 28, 2005

The recent decision in 1-800 Contacts, Inc. v. WhenU.com (2d Cir. June 27, 2005) is an important case in the murky law relating to keywords. Many companies use keywords in some form to generate revenue, from search engines selling keywords to trigger banner ads or the pop-up business described in the WhenU decision.

The case is particularly important for companies such as Google not only because keyword sales represent a substantial portion of their revenue, but also because obtaining legal precedent supporting this kind of business has been inconsistent. The WhenU decision, issued from the influential Court of Appeals for the Second Circuit, could therefore be precisely the boost that many of these companies have been hoping for. While the holding in the case appears relatively narrow, the court did provide keyword supporters much ammunition in their attempts to expand its impact.

[Editor's note: For more on various courts' reasoning and the application of laws in trademark law to pop-up advertising, see, "Trademark Law Shapes Internet Pop-up Ads."]

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