Trademark owners take note: whether or not you participate in Google’s Adwords program to advertise your business, your competitors may be using your trademark as a keyword in promoting their competing business. Google not only allows this potentially infringing practice, it encourages it! The company actively and openly sells competitors’ trademarks to advertisers seeking to divert potential customers to the advertisers’ websites.
It remains to be seen, however, how long the courts will permit this practice to continue. On April 3, 2009, a federal appeals court sitting in New York decided to allow a case to go forward in which a computer-repair company called Rescuecom sued Google for trademark infringement. The case is Rescuecom Corp. v. Google, Inc., Case No. 06-4881 (2d Cir.).
The complaint involves two of Google’s programs used in Internet advertising: AdWords and Keyword Suggestion Tool. With AdWords, advertisers purchase keywords relevant to their business. When a purchased keyword is used in a Google search, the advertiser’s ad and link appear on the search results page, either in the right margin or in a horizontal band immediately above the relevance-based (i.e., non-sponsored) search results. The Keyword Suggestion Tool recommends keywords to advertisers. Among its recommendations might be the trademark owned by the advertiser’s competitor.