Is AdWords Illegal?
Of course, Google AdWords per se is not illegal. But the very tenets of the AdWords system—which lets advertisers bid for ad space based on keywords—may be in trouble. 901am reports of a recent lawsuit involving Google and a company called American Blind & Wallpaper Factory, Inc. American Blinds argues that Google is infringing on its trademarks by allowing competitors to bid on their keywords (i.e., “American Blinds”). This way, the company’s competitors can get top spot in relevant AdSense ad units, and even in AdWords for search units.
According to Reuters, American Blinds complaint argues that Google’s system violates trademark law by allowing competitors of American Blinds to use Google’s system to buy keyword search terms, such as “American Blind,” which trigger ads from rival companies.
“We spend millions of dollars annually to build brand awareness and cannot stand idle while Google allows our competitors to ride our coattails,” said a statement from Steve Katzman, CEO of American Blind.
Is this reasonable? Well, I’m no lawyer, but if they are using this argument, then perhaps they can also consider the possibility of competitors optimizing for those keywords. Macalua.com says some companies are already using their competitors’ names to optimize for search engine ranking. And they’re succeeding.
But Marc Macalua cites the Google AdWords policies in saying this practice is not acceptable.
Smart Communications Inc. is bringing the telco wars to search. Do a search for “globe visibility” (the product name for Globe Telecom’s flagship 3G/HSDPA mobile broadband service) and you’ll see the Smart 3G Adwords ad in the top PPC spot.
Is this keyword hijacking strategy legal? No, it’s not legal. That’s according to the Google Adwords FAQ:
Google takes allegations of trademark infringement very seriously and, as a courtesy, we’re happy to investigate matters raised by trademark owners. Also, our Terms and Conditions with advertisers prohibit intellectual property infringement by advertisers and make it clear that advertisers are responsible for the keywords they choose to generate advertisements and the text that they choose to use in those advertisements.
But then it’s not easy to monitor each and every AdWords bid to see if it’s potentially infringing on another company’s trademarks or copyrights.
Again, things like these bring up more questions, especially in the light of a changing media landscape, and changing practices and norms in the fields of PR and even law. Google is turning out to be the biggest player of them all, but is still not immune to criticisms and legal liabilities.
So is using a competitor’s keywords or name illegal? Probably, from the perspective of Google’s ToS, yes. But is Google liable when a client uses a competitor’s trade name as keywords? That’s what we have to find out soon.









