A distributor of window blinds and wallpaper has filed a
lawsuit against Google, claiming the search engine's keyword-based
advertising violates its trademarks.
American Blind & Wallpaper Factory argued that Google, by
selling keyword-based advertising to competing retailers when
Google users search on "American Blind" or "American Blinds", is
violating the company's trademark.
Google argued that "American" and "Blind" and other words
claimed to be trademarks by American Blind are descriptive and
should not enjoy trademark protection.
The two companies had been sparring over the trademark dispute
for about a year.
American Blind has asked the court for an injunction requiring
Google to stop keyword-based advertising on its trademarks. The
retailer is also seeking damages, said David Rammelt, American
Blind's lawyer.
"Every time they've diverted a potential customer to one of our
competitors, we've been harmed," Rammelt said. "American Blind has
spent more that 50 years and $70m building its reputation."
American Blind has asked the California judge to throw out the
request from Google that its keyword-based advertising model be
ruled legal. A hearing is scheduled for 29 March.
Other companies, such as General Motors and National Car Rental
System use generic words in their names and could be targeted for
keyword-based advertising, Rammelt said.
The American Blind lawsuit could have huge implications for
keyword-based advertising and trademarks on the internet.
"Google has decided what trademarks it will honour and what
trademarks it will not," Rammelt said. "You have decades and
decades of trademark law, and it's trying to grapple with new
technology."
Earlier this month, Netscape settled a similar lawsuit brought
by Playboy Enterprises. In the five-year-old lawsuit, Playboy sued
Netscape for using its trademarks to deliver search engine
advertisements. Terms of the settlement were not disclosed.
Grant Gross writes for IDG News Service