A franchised computer services company has sued Google for trademark infringement, based on Google's AdWords program using trademarks as keyword triggers.
Rescuecom has argued in a court filing that Google allows other computer service companies to use the Rescuecom brand in its sponsored links program. Rescuecom argued also that the practice violates trademark law and leads Google users to contact and use rival companies they might think tie to Rescuecom.
Earlier this month, a federal court expanded Websites' ability to use competitors' names in metatags if all that's involved is a truthful identification of the competitor's goods – and the product can't be identified without the competitor's brand name, with no suggestion the brand name owner endorses the usage. Previously, former Playmate of the Year Terri Welles won a court decision allowing her to metatag her Website with Playboy and Playmate brands because they described an actual part of her career.
Citing the Lanham Act, the court held that Devco, which makes replacement machinery parts for Bijur Manufacturing Corp.'s equipment, did not infringe Bijur's brandname with its metatags. American trademark law allows "nominative use" – a competitor using another company's brand name to identify the competitor's goods, and it is also allowable provided the competitor brand name is used only to that extent absolutely necessary.
But whether that covers brand name usage in search keywording or in selling trademarked keywords may be for another court to decide.
Rescuecom isn't the first company to sue Google over the AdWords program. Companies like Geico, American Blind and Wallpaper, and others have filed trademark infringement against the search kings over selling trademarked keywords. Rescuecom said in its filing they formerly sent cease-and-desist letters to competitors directly, threatening litigation if Rescuecom trademark use wasn't stopped, but Rescuecom said in the filing they learned keywords had been given to those competitors by Google.
In April, Google changed its policy to allow advertisers to use others' trademarks as keywords, a practice it formerly had not allowed.
