Google: Anyone can buy “Louis Vuitton”. (So what?)

Google has announced this month that it is changing its search policy in Europe to allow advertisers to buy trademarked brand names as keywords. Here’s a rundown, in the simplest terms, of what this story is all about.

What does the decision mean in practice?

It means that advertisers that do not own the brand name can buy and use trademarked brand names as keywords in their paid search ads. For example, it you’re a second hand fashion store specialising in designer goods, you can now buy the keyword “Louis Vuitton” to use it in your pay-per-click advertising.

Why does the decision only affect Europe?

Google has been allowing third-party advertisers to buy trademarked brand names as keywords since 2004 in the USA and Canada. It extended this policy to Britain and Ireland in 2008.

The decision to extend this policy in Europe follows a European Court of Justice ruling in March that found Google had not broken any trademark law by allowing advertisers to bid for keywords corresponding to third party trademarks.

Why was it in court?

The French luxury goods manufacturer LVMH Moet Hennessy Louis Vuitton, and a group of other brand owners, took Google to court in France, saying that Google breached trademark law by showing other sources in search results when internet users searched for “Louis Vuitton” on Google. In other words, Louis Vuitton believed that only Louis Vuitton or other authorised sites had the right to purchase its name for use in search results.

The French court originally ruled in its favour, but the appeal at the European Court of Justice overturned the ruling.

What do the brand owners say about the change in policy?

Brand owners feel that third party ads confuse customers and make it difficult for them to determine the origin of the goods and services. They feel they should be able to protect their brand identity.

Dominic Batchelor, a corporate partner at the legal firm Ashurst based in London, told the New York Times that the decision “will come as a blow to rights holders” in the battle “over policing content in a challenging online environment.”

“The onus will be on rights holders to monitor and assert their rights,” he said.

“How readily Google responds to complaints about infringing use remains to be seen.”

What does Google say about it?

Trademark owners who still feel that third-party ads are confusing customers will have the right to file a complaint with Google and Google has agreed to take down ads that they agree are confusing to customers.

Google also says it remains determined to work with brand owners to ban ads for counterfeit products.

Ben Novick, Google’s communications manager in Europe told the New York Times that “users will benefit from seeing more relevant ads following a search on Google,” because selling brand names as ad keywords to third parties allows customers to find product reviews, sellers of second-hand goods and other information.

When does the change in policy come in to affect?

14 September 2010.

Read more:

New York Times, Google Will Sell Brand Names as Keywords in Europe, 4 August 2010

BtoB Magazine, Google to sell brand-name keywords in Europe, 5 August 2010

The Telegraph, Google ‘can sell brand names to other advertisers’, 22 September 2009

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