New Battle Over Google Key Word Advertising
By: CYNTHIA A. MOYER
June 2009
On May 11, 2009, FPX, LLC, a software company, filed a class action lawsuit against Google, Inc. and other trade partners (e.g., youtube, AOL, Myspace) over Google’s continued practice of selling registered trademarks as keywords. Recall that Google allows anyone to purchase any word, including a registered trademark, as a “keyword,” which, when that word is typed into the search engine, will direct traffic to the site owned by the person or entity purchasing the keyword. Thus, Google’s practice allows a competitor to buy your name, and direct internet traffic to the competitor’s site by typing your trademark into Google.
FPX contends that Google’s practice of selling trademarks as key words confuses consumers and has the potential to divert potential customers from the trademark owners’ sites. Moreover, according to the complaint, sponsored links do not always identify themselves as such, thereby causing additional consumer confusion. The plaintiff has asserted claims of unjust enrichment, vicarious trademark infringement, contributory trademark infringement, common law trademark infringement, false designation of origin, and violations of the Lanham Act.
We will update you on this case as it progresses, and continue to report on key word advertising as the law continues to evolve.