topics that matter; ideas worth sharing

share a tip, submit a link, add something new

Trademark owners battle search engines

December 23, 2004, 12:10 PM —  IDG News Service — 

Google Inc.'s informal corporate motto is "Don't be evil" but the search engine provider isn't viewed as particularly nice by a growing list of companies that claim Google is misusing their trademarks and, in so doing, hurting their businesses.

Search engines such as Google deliver users both a list of Web sites and a list of ads triggered by the users' query terms, also known as keywords. For example, a seller of art supplies may pay Google to run its ad whenever a user enters a query containing keywords such as "easel" or "stencil." The dispute at hand arises when advertisers sell keywords that are trademarks without authorization from the trademark owner.

Rescuecom Corp. is one company challenging Google's practice in court. The Syracuse, New York, computer services franchising business says Google is seriously hurting it by serving up competitors' ads when users search for "Rescuecom" in Google's search engine.

Google and the Rescuecom competitors buying the ads are profiting without authorization from the Rescuecom trademark, which the company spends significant amounts of money promoting and protecting, Rescuecom claims in a lawsuit filed against Google in September in U.S. District Court for the Northern District of New York. The practice can also confuse potential customers and franchisees, leading them to incorrectly assume that Rescuecom is associated with a competitor, which results in lost business for Rescuecom, the lawsuit claims.

"Defendant Google is promoting, encouraging, enabling and profiting from Rescuecom's competitors 'free-riding' on (Rescuecom's) goodwill and the name recognition it enjoys in its marketplace," the lawsuit reads, and adds further down: "Rescuecom would have realized additional sales, franchisees, customers and revenue from such diverted Internet users were it not for Google's intentional and improper sale of (Rescuecom's) protected trademark 'Rescuecom' as a keyword."

Rescuecom, which had 67 franchisees when the lawsuit was filed, asks the court, among other things, to forbid Google from using "Rescuecom" as a keyword for ads in its search engine and to have Google pay damages.

Google has said the lawsuit is without merit.

So who will prevail? With U.S. law unclear on the legality of using trademarks without authorization to trigger online ads, search engines and trademark owners will spend a lot of time and money in coming years battling the issue in court, experts say.

Search engines such as Google and Ask Jeeves Inc. are fighting over the issue with trademark owners in several ongoing cases at the federal district court level. Although Google won a partial victory last week against Government Employees Insurance Co. (Geico) in one of those cases, experts say a solid legal precedent is likely to be years away.

"There have to be more cases and the cases need to get appealed," said Sheldon Klein, an attorney specializing in intellectual property matters and a partner at Arent Fox PLLC in Washington, D.C. "When you have one of the circuit courts of appeals ruling on something, it carries more weight (than at the district court level) and it's a binding precedent within that entire circuit. We may end up having two

I like it!
Post a comment
The content of this field is kept private and will not be shown publicly.
  • Allowed HTML tags: <a> <em> <strong> <cite> <code> <ul> <ol> <li> <dl> <dt> <dd>
  • Lines and paragraphs break automatically.
Resources
White Paper

Symantec Backup Exec 12 and Backup Exec System Recovery 8 deliver industry leading Windows data protection and system recovery. Download this whitepaper to find out the top reasons to upgrade and how to get continuous data protection and complete system recovery.

Webcast

Data and system loss — from a hard drive failure, malicious attack, natural disaster, or simple human error — can happen anytime. Don’t leave your business vulnerable. Make sure you have a secure recovery strategy in place. Symantec's latest backup and system recovery technology can efficiently restore critical applications, individual emails and documents and even restore your entire system in minutes in the event of a loss.

White Paper

Businesses face a growing challenge to ensure that the IT environment is properly protected. Backup Exec 12 integrates with other applications in the Symantec family of products, to complement your current data protection strategy, keep your data securely backed up and make it recoverable when you need it most.

Free stuff
Featured Sponsor

Get a broad understanding of important regulations and how you can make sure your site is in adherence.





Learn how VeriSign SGC-enabled SSL Certificates can help improve site security and customer confidence in the free white paper, "How to Offer the Strongest SSL Encryption." In this paper you will learn the differences between weak and strong encryption and what they mean for your site's performance.

Get VeriSign's free white paper: "The Latest Advancements in SSL Technology" and learn about the benefits of strong SSL encryption, Extended Validation (EV) SSL and security trust marks and what these SSL offerings can do for your site.

Now with Extended Validation (EV) SSL available from VeriSign, you can show your customers that they can trust your site. Learn about EV SSL benefits in this free VeriSign white paper.

More Resources