How Far Can You Go? service. One of its features is sponsored links, advertisements triggered by keywords supplied by the advertiser. When a user conducts a Google search with a keyword, the search results display the sponsored link in addition to organic search results. It is common for advertisers to use competitors' trademarks as keywords advertiser's sponsored link ad will appear when someone searches for their competitor or their competitor's products/ services. It makes sense from a marketing perspective to target competitors' potential customers after all, they are searching for a product/service that the advertiser offers. In this article we compare the legality of competitive keyword advertising in Australia, the United States and Europe. including a competitor's trademarks as keywords does not constitute trademark infringement. In "Veda," in keywords was not trademark "use" (and hence trademark infringement) for the purposes of local trademark law for a number of reasons. selected keywords and provided them to Google. This is not "use" that indicates a connection between the services provided by Malouf and the services provided by Veda. Second, keywords involving the word "Veda" may be used by anyone under the Google AdWords program, including Malouf's competitors. When a consumer searches using one of these keywords, sponsored links of Malouf's competitors may appear. They may also appear in organic search results. Third, the keywords are invisible to consumers. Justice Katzmann stated "the proposition that using words which are invisible and inaudible, indeed imperceptible, to consumers is using them as a trademark makes no sense." After all, keywords of one trader from another when no one can see the keywords. In trademarks as keywords and displaying a competitor's trademark in the text of the sponsored link advertisement. Whether this amounts to trademark infringement depends on the circumstances, and whether the use is considered to be descriptive (which is acceptable) or to be used as a badge of origin. SA the Court of Justice of the European Union (CJEU) stated that the test is whether the selection of trademarked keywords has an adverse effect on one of the functions of the trademark, such as the function of indicating the origin of the mark. This depends in particular on the manner in which that ad is presented. affected where the ad does not enable an average internet user, or enables that user only with difficulty, to ascertain whether the goods or services referred to therein originate from the proprietor of the trademark or an undertaking economically connected to it or, on the contrary originate from a third party." consumer may wrongly think that the goods advertised are from the trademark proprietor. In internet websites that took orders for the delivery of flowers. The plaintiff alleged that in using its trademark, "Interflora," and associated terms, the defendant was at Carroll & O'Dea Lawyers. His practice includes advising on a variety of issues for businesses including marketing disputes, acquisitions and disposals, joint ventures, contracts and employment arrangements, international supply, license and distributorship arrangements and associated disputes and regulatory issues. advocacy for clients in the Carroll & O'Dea Lawyers business lawyers team. Level 18, St. James Centre 111 Elizabeth Street Sydney New South Wales 2000 Australia +61.2.9291.7100 Phone +61.2.9221.1117 Fax codea.com.au sblack@codea.com.au simone_black@codea.com.au |