across the bar

google victory in EU adwords case

by Steve - Posted 24 March 2010

The European Court of Justice ruled in favour of Google  yesterday in the Louis Vitton Adwords case, finding that Google's practice of allowing online advertisers to buy keywords which were the same or similar to their competitors' trademarks, did not in itself amount to trademark infringement.  

There must have been the proverbial deep gasp of relief from Google's headquarters as the search giant derives a large portion of its income from its Adwords online advertising service.

The court did rule that online advertisers who use another party's trademarks in keyword-based advertising in order to confuse consumers or to piggyback on their competitors' business success could be held liable for trademark infringement. This clarifies the law as it relates to online advertising and the decision is to be welcomed.

Now Google can concentrate on its fight with Viacom and others in the Youtube case.