The whole keyword-advertising-violates-our-trademark debate hasbeen brought to court more than once and more than once has beenunsuccessful. American Airlines, though, is perhaps the largest companyto make the claim, filing a trademark violation suit against Google.
American isn't thrilled that competitors and travel sites can bid onits company name as a keyword. Though the competitor-keyword argumenthas been made before, this may be a first where the plaintiff citesonline retailers selling competitor wares.
It would appear, if the suit were successful, Coke could sue television stations advertising that 7-11 sells Pepsi too.
American complains that competitor keyword bidding and the addisplay associated with the keywords are tantamount to getting a "freeride on American Airlines' brands through use of Google's technology,"and that Google is guilty of "vicarious trademark infringement."
In the 55-page complaint,American asserts that "Google's 'Sponsored Links' may instead redirect[searchers] to: (i) websites of airlines that compete with AmericanAirlines; (ii) websites that sell air travel not only on AmericanAirlines, but also on a variety of airlines that compete with AmericanAirlines; or (iii) websites that are entirely unrelated air travel."
It may be the second argument that's disturbing to many. Technology and Law Blog's Eric Goldman is also skeptical:
…my working theory is that this was not a goodlawsuit for American Airlines to bring. I've noted many times beforethat lawsuits over consumer "diversion" often cost more than the lostprofits from the allegedly diverted consumers.