1 April 2010Trademarks

Google wins AdWords battle against Louis Vuitton

The European Court of Justice has ruled that Google is not liable for trademark infringement by allowing companies to use rivals' trademarks as advertising keywords through its AdWords programme.

The court ruled that although Google provides a platform for the adverts, it is the responsibility of individual advertisers to ensure that they do not infringe trademarks.

The case began in 2004 when LVMH, parent of Louis Vuitton, sued Google complaining that it permitted companies selling counterfeit products to link advertising to searches for Louis Vuitton. LVMH won early victories in the French courts, but the matter was referred to the ECJ by France's Court of Cassation.

While the ruling looks like good news for Google, AdWords users may be concerned that the court opened the door for companies such as LVMH to sue them for trademark infringement. Google will have to act swiftly if a company informs it of infringement, and companies using others' trademarks as keywords will have to make it clear that they do not have an affiliation to the company concerned.

“Although Google provides a platform for the adverts, it is the responsibility of individual advertisers to ensure that they do not infringe trademarks.”

Dr Harjinder Obhi, senior litigation counsel at Google, said: “We believe that user interest is best served by maximizing the choice of keywords, ensuring relevant and informative advertising for a wide variety of different contexts...the Court confirmed that Google has not infringed trade mark law by allowing advertisers to bid for keywords corresponding to their competitors’ trade marks. It also confirmed that European law that protects internet hosting services applies to Google’s AdWords advertising system. This is important because it is a fundamental principle behind the free flow of information over the internet.”

The court also ruled on joined cases concerning travel agent Viaticum and dating service CNRRH.

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