Google has already won suits over its ad system, which
allows companies to buy the right to display their advert when a
certain term is searched for. The new case will be the first to be
heard before a jury, according to the lawyers acting against
Google.
Trade mark owners have argued that they should be the only firms
allowed to advertise when their trade mark is searched for.
American Blind & Wallpaper Factory (ABWF), the US's biggest
reseller of window blinds, has sued Google for abuse of trade marks
because of rivals' right to buy adverts when web users search for
its name. The ad system does not affect the actual search results
delivered by Google's search engine.
Google applied for summary judgment in the case, asking the US
District Court for the Northern District of California to rule
immediately in its favour. That court's judge Jeremy Fogel refused,
saying that the issue should go to trial.
"The large number of businesses and users affected by Google's
AdWords program indicates that a significant public interest exists
in determining whether the AdWords program violates trademark law,"
said the judge's ruling.
Google has previously won two federal cases on similar grounds
against car insurance company Geico and computer repairer
Rescue.com, which is appealing against the verdict.
“We are gratified that our client will get its day in court, and
that Google will finally face a jury for its trafficking in other
companies’ intellectual property," said David Rammelt of Kelley
Drye, the law firm which is representing ABWF. “The case also
carries implications for other global companies who resent Google's
profiting off the sale of their brand names and trademarks."
