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Wednesday, February 16, 2005

Does Google Enable Trademark Infringement ?

A bunch of lawsuits that charge search engines and google with trademark infringement could upend online advertising, transforming the current system in which competitors jockey to have paid ads appear alongside the organic/natural search results.

The car insurer Geico, Playboy Enterprises, American Blind and Wallpaper a home furnishings company in Plymouth Michigan , have filed formal lawsuits with google and other companies like When U, HP, Lowe's and The Sign Design Company , are all interested parties.

In it's suit American Blind and Wallpaper charges that by directing searches for the phrase American Blinds to ads for its rivals, Google abets infringement. At presstime, a Google search of the firm's name produced natural results, including American Blind's homepage, along with ten sponsored links, six of which belong to competitors.

Google beat a similar lawsuit brought on by Geico Insurance, but Netscape settled out of court with Playboy Enterprises over banner ads triggered by the trademarked words Palyboy and Palymate. Still, American Blind and Wallpaper faces an uphill battle. Many in the legal community view the American Blind company name as just too generic.

Google AdWords needs to address Pay Per Click upgrades to ensure trademark protection policies and also to reduce or eliminate Pay Per Click Fraud. We expect precendent setting court rulings in the coming months that could alter the paid search advertising systems in place at Google and Yahoo/Overture.