On November 9, Google will face trial over its AdWords programme, following allegations by American Blind & Wallpaper Factory that the system represents an abuse of US trademark law. Under the pay-per-click AdWords system, related adverts appear on a page of search results - it is very possible that by searching for a company, the company's competitor may appear as an advert next to the search results. In an April decision denying Google's motion to dismiss the case, the court ruled that the "
evidence suggests that Google used [ABWF's] mark with the intent to maximise its own profit [and] ABWF has produced sufficient evidence of likelihood of [consumer] confusion [to allow the case to be decided by a jury]".
Kelley Drye & Warren, the law firm representing ABWF, and its lead attorney David Rammelt, said: "
The downside of search optimisation based on use of trademarks is rarely discussed. The reality is that companies large and small are hurt when Google uses a company's trademark, without permission, for the benefit of the company's competitors and Google. This is the first time that a jury will have the chance to hear how Google's business model takes advantage of companies that have built the value of their trademarks through hard work and investment."
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