Google will, from next month, allow some advertisers in Europe to use
third party trademarks as keywords to generate advertisements under AdWords,
even if they do not own that trademark or have explicit approval from the trademark
owner to use it.
In March this year, the European Court of Justice (ECJ) decided that Google
had not infringed trademark law by allowing advertisers to purchase keywords
corresponding to their competitors’ trademarks.
Legal proceedings were initiated in France against Google by a number of trademark
owners, as to the legality of the use, in its AdWords advertising system, of
keywords corresponding to trademarks, which can lead to the display of ads for
sites of, such as, resellers, sellers of similar goods and sites
offering counterfeit versions of the products covered by the trademark.
The ECJ ruling allowed Google to continue selling ads linked to searches for
brand names, thus protecting a vital revenue stream for the company. However,
the ruling also stipulated that advertisers themselves cannot, by using such
keywords, arrange for Google to display ads which do not allow internet users
easily to establish from which undertaking the goods or services covered by
the ad in question originate.
Google has said that its new policy has taken account of that ruling. In Europe,
it will not prevent the use of trademarks as keywords, but, from September 14,
trademark owners will be able to complain about the selection of their trademark
by a third party if they feel that it leads to a specific ad text which confuses
users about the origin of the advertised goods and services.
It confirmed that it will then conduct a limited investigation, and if it is
found that the ad text does confuse users as to the origin of the advertised
goods and services, Google will remove the ad.
Under the policy, Google has said that its permitted advertisements will include,
but are not limited to ads: using a trademarked term in a descriptive or generic
way, such as not in reference to the term as a trademark; for competing products
or services; for reviews about a product or service corresponding to the trademark;
for resale of the trademarked goods or services; and for the sale of components,
replacement parts, or compatible products corresponding to a trademark.
Google believes that its “goal is to provide our users with the most
relevant information, whether from search results or advertisements, and we
believe that users benefit from having more choice. Our policy aims to balance
the interests of users, advertisers, and trademark owners.”
In a separate change, Google has announced that it will realign its policy
in Canada, the United Kingdom and Ireland with that in the United States allowing certain advertisers to use third
party trademarks in the text of their advertisements from September 14 this year.