Thursday, November 01, 2007
A Court Case Web Advertisers Should Watch Closely
U.S. District Court Judge John H. McBryde has decided to let American Airlines proceed with its lawsuit against Google.
The airline's complaint alleges that Google allows rivals to pay to have links to their sites appear when computer users search Google for American trademark terms, such as AAdvantage. American claims that Google was infringing on its trademarks and deceiving consumers.
Google has successfully fought lawsuits making similar claims in the past. GEICO had sued Google for similar reasons but Google prevailed in that matter. And reportedly other companies have filed similar lawsuits against Google alleging that paid advertising by competitors amounts to trademark infringement.
The Judge actually gave no reason for his ruling, but it is interesting that he must have found reason to ignore the precedence established by the GEICO case against Google.
Should American prevail, and odds are an actual trial is still far off in the future (not to mention the appeals that will no doubt follow), the case has the potential to change the face on online advertising. Worse for Google, it potentially could strike a blow to their whole business model.
We'll keep track of the case as it slowly develops.
