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Google wins the war of Adwords
Over the last few years, there have been a number of skirmishes between brand owners and the operators of internet search engines, such as Google and Yahoo, over the use of trade marks as keywords. Brand owners are annoyed by the fact that such websites sell keyword sponsorship, which Google calls Adwords, to advertisers so that an advert and hyperlink to the advertiser's website appears prominently in the search results for that keyword. As competitors can sponsor keywords containing a brand name, brand owners have accused Google (and other search engine providers) of allowing their competitors and counterfeiters to target their brands.
In the much anticipated judgment of the European Court of Justice in the joined cases of Google v Louis Vuitton and Others (C-236/08 - C238/08) handed down on 23 March 2010, the ECJ held that making available an Adword consisting of a trade mark to rivals and counterfeiters and subsequently displaying ads and sponsored links to their websites does not constitute trade mark infringement. Therefore, brand owners will have no cause of action against Google or other internet search engine providers. Whilst brand owners will be disappointed that they cannot take action against Google, the ECJ did however confirm that brand owners could have a right of action against the advertisers who sponsor Adwords in order to display adverts for their own goods and services where the advert does not enable the internet user to ascertain (or to easily ascertain) whether the goods and services being offered originate from the brand owner or a third party.
Click here to read the full eBulletin.
24 March 2010
