Playboy Enterprises lost its trademark infringement lawsuit against Internet search engines Excite.com and Netscape.com, when a Federal District Court in Santa Ana, California ruled that the search engines had not made commercial use of Playboy's famous trademarks.
Playboy claimed that the two Internet search engines were violating trademark laws by displaying pornographic banner advertisements from other companies on a search results page when the words "playboy" or "playmate" were entered. This technique of linking keywords to banners is known as banner ad keying and Playboy asserted that it could confuse and divert its customers, as well as tarnish its reputation.
Federal District Court Judge Alicemarie H. Stotler didn't agree with Playboy. In a June 24 ruling, Stotler stated that even though Playboy holds the trademarks for "Playboy" and "Playmate," the words are also a part of the English language. Stotler asserted that to restrict their usage in the manner Playboy was asking would constitute an online monopoly on the common usage of those words. She also added that even if the search engines had used Playboy's actual trademarks they would not be breaking trademark laws, because there was no evidence that consumers would be confused between the word "Playboy" and a banner ad for an adult Website.
The decision is good news for search services. At least according to Marissa Gluck, analyst for the research firm Jupiter Communications, who says these services derive 20 to 30 percent of their advertising revenue from banner ad keying. An attorney for Playboy said the company will appeal the court's decision.
