Google's ad sales tested in court

Iria · Feb 14, 2006, 06:09 AM

Another lawsuit is poised to challenge Google's lucrative advertising-based business model by arguing it encourages unlawful use of trademarks as keywords.

The parent company of a payday loan provider called Check 'n Go has sued Google in federal court in Ohio, saying that the search engine permits other payday lenders to purchase ads that appear when the trademarked phrase "check n go" is typed in.

CNG Financial, a Cincinnati-based company that operates more than 1,300 Check 'n Go stores through its subsidiaries, has asked a federal court to halt the practice.

"Google is enriched by the misappropriation" of the trademark, CNG said in court documents filed Jan. 24. "Consumers may click on the links to the competitors of Check 'n Go (and) may not realize that they have unwittingly 'clicked' on a competitor's Web site."

Because no federal appeals court has addressed the practice of selling trademarked keywords, the law in this area remains relatively unsettled. That means Google and other search engines that follow similar practices could be found liable for trademark violations, which would slice into future profits.
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Read More / Source: News.com

Feb 14, 2006, 06:09 AM	#1
Iria DriverHeaven Extreme Member Join Date: Apr 2004 Posts: 7,275 Rep Power: 89	Google's ad sales tested in court Another lawsuit is poised to challenge Google's lucrative advertising-based business model by arguing it encourages unlawful use of trademarks as keywords. The parent company of a payday loan provider called Check 'n Go has sued Google in federal court in Ohio, saying that the search engine permits other payday lenders to purchase ads that appear when the trademarked phrase "check n go" is typed in. CNG Financial, a Cincinnati-based company that operates more than 1,300 Check 'n Go stores through its subsidiaries, has asked a federal court to halt the practice. "Google is enriched by the misappropriation" of the trademark, CNG said in court documents filed Jan. 24. "Consumers may click on the links to the competitors of Check 'n Go (and) may not realize that they have unwittingly 'clicked' on a competitor's Web site." Because no federal appeals court has addressed the practice of selling trademarked keywords, the law in this area remains relatively unsettled. That means Google and other search engines that follow similar practices could be found liable for trademark violations, which would slice into future profits. ___________ Read More / Source: News.com