Rosetta Stone Claims InfringementA maker of language software is suing a smaller competitor for alleged trademark violations in an effort to combat what it claims is "piggybacking," a practice in which companies use major players' brand names or other trademarked words in the text of search ads to lure Web surfers to their own sites.
The case highlights a particular struggle for companies that rely heavily on the Internet for advertising and putting their brands before the public.
Rosetta Stone Ltd., an Arlington, Va.-based maker of software for teaching and learning foreign languages, filed a suit in federal court in California last week against Rocket Languages Ltd., Libros Media Ltd., members of an affiliated advertising program and other defendants, who were not identified. The complaint alleges, among other things, that Rocket Languages and its affiliates purchased and used the words Rosetta Stone, which are trademarked, or confusingly similar variations as "keywords" in several Internet advertising programs, including Google's AdWords program and Yahoo's Marketing Solutions program.
As a result, according to the complaint, when a user of one of those search engines types in "Rosetta Stone" or "Rosetta Spanish," the search may produce ads for Rocket Language's products or other ads as well as the Rosetta Stone ad. The complaint also alleges the defendants used the trademarked words Rosetta Stone in the headlines of the links they sponsored that appear on the right side of the Google search page.
Rocket Languages, which is based in New Zealand, did not return a call placed to its Los Angeles office, where it conducts its U.S. operations.
"A number of these cases have been filed against Google itself," said Paul C. Llewellyn, a trademark lawyer in New York. "But Google has been vigorous in defending their cases, because the AdWords program is one of their main sources of revenue."
While the mere purchase of the Rosetta Stone trademark for a sponsored link might be enough to trigger federal trademark law, Mr. Llewellyn said, the case may come down to whether Rosetta Stone can prove there is a substantial likelihood that a significant number of consumers are going to think Rosetta Stone is somehow affiliated with the ads.
That may be a more difficult claim to prove. As late as Monday afternoon, a Google search for "Rosetta Stone" turned up sponsored links titled "Don't Buy Rosetta Software," and "Rosetta Spanish a Scam?"
Mr. Llewellyn says consumers are unlikely to believe Rosetta Stone is associated with those Web sites.
By: Dan Slater
Wall Street Journal; July 8, 2008
