Google cleared in AdWords trademark suit

From CNET News.com: Google does not violate the trademarks of companies when it allows online advertisers to use keywords identical to those trademarks, according to a ruling handed down by a European court.

On Tuesday, the European Union's highest court cleared Google in a trademark lawsuit filed by luxury goods maker Louis Vuitton and two other companies. One of several businesses owned by LVMH, Louis Vuitton had argued that the search giant was infringing on its rights by allowing other advertisers to use its trademarks as search terms for Google's AdWords. The concern is that by using such keywords, competing products could show up in search results alongside the trademarked items.

The Luxembourgh-based European Court of Justice (ECJ) disagreed as far as Google's culpability, issuing a statement on Tuesday that "Google has not infringed trademark law by allowing advertisers to purchase keywords corresponding to their competitors' trademarks." But the decision doesn't leave Google completely in the clear.

The court also found that Google is obligated to remove ads if trademark owners complain that their rights have been violated. The judges sidestepped the issue of whether Google is responsible for policing AdWords on its own to track down and remove any violations. Instead, the ECJ said, that is a matter for national courts to examine.

The ruling did indicate that the actual online advertisers, rather than Google, could be found culpable of violating registered trademarks.

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