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GEICO vs Google Ads: Google Wins

abertoll writes "A federal judge decided that Google is able to sell ads under the GEICO trademark, claiming that this is fair use of the trademark. GEICO's contention was that competing insurance companies were using the name GEICO under which to buy Google Ads, so that when someone searches for GEICO, their ad would come up."

42 of 205 comments (clear)

  1. Better Stick by fembots · · Score: 5, Insightful

    The ruling is fine, as long as other judges/courts are sticking to the same ruling in the future.

    Moreoever it's quite widely recognized that companies are allowed to use/refer/compare other competitors under the terms of fair use, how else are companies going to mention competitors' products without infringing a TM?

    The judge said that "as a matter of law it is not trademark infringement to use trademarks as keywords to trigger advertising".

    Does that mean that it's okay to use "BesidesGoogle.com" or "BetterThanGoogle.com" for another online search engine service? Since it's only promoting fair competition as argued by Google. And domain name is simply a form of advertising keywords that people use to find a product.

    1. Re:Better Stick by Scarblac · · Score: 4, Interesting

      Moreoever it's quite widely recognized that companies are allowed to use/refer/compare other competitors under the terms of fair use, how else are companies going to mention competitors' products without infringing a TM?

      I wonder if there's going to be a repeat of this sort of law suit in some other country. After all, Google is an international business, and for instance in the Netherlands it is not allowed to mention competitor's products in advertising.

      --
      I believe posters are recognized by their sig. So I made one.
    2. Re:Better Stick by viva_fourier · · Score: 2, Informative
      A trademark includes any word, name, symbol, or device, or any combination, used, or intended to be used, in commerce to identify and distinguish the goods of one manufacturer or seller from goods manufactured or sold by others, and to indicate the source of the goods


      So, with that definition in mind, I think a domain name does give an indication of the source of goods, and www.googlesucksadonkey.com would not be valid for a search engine name...

      --
      and now back to the fallout shelter...
    3. Re:Better Stick by rokzy · · Score: 2, Interesting

      good point.

      if domain squattig is bad, why not trademark squatting?

      if there's one thing that's more annoying than the whole patent/trademark/copyright mess, it's the sleazy companies that try peddling their 2nd rate rip-offs on the back of confusion. c.f. "buy g3n3ric v1a.g.ara.!!!!!"

    4. Re:Better Stick by harvardian · · Score: 5, Informative
      I went to a panel discussion on this topic, and one of the lawyers on the panel mentioned that Google has already incurred fines in France and Germany for this practice.

      For example: this story

      As a result of the ruling, searches under 'bourse de vols' will only generate search results linking to Mr Dariot's site. Google is looking to appeal the decision.
      So as happy as we are about this ruling in the States, it looks like France isn't so keen on letting companies bid on their competitors' trademarks.

      I don't know how this influences broad-match type scenarios, though. What happens if somebody searches for "(trademark term) cars", and a competitor buys "cars" rather than the trademarked term? This seems like it would be prohibitively difficult to stop.
    5. Re:Better Stick by Spad · · Score: 2, Informative

      The UK is the same - adverts always use "Another leading brand" or similar - or an older version of the same company's product - to compare to.

  2. One thing to keep in mind.... by wcitechnologies · · Score: 5, Funny
    ...is that google always wins. ALWAYS.


    Google for president.

    --
    Electrons are free; it is moving them that becomes expensive.
    1. Re:One thing to keep in mind.... by nutshell42 · · Score: 2, Interesting
      Yeah great perhaps we can even replace the Evil Microsoft Empire with the equally evil google empire.

      Now write 100 times "google is a corporation now"

      Btw am I the only one disillusioned that google seems to concentrate on flashy new services (kitchensink.google.com) and less on improving their search algorithm. I know that the growth of the web makes it more and more difficult but google fails to provide even simple things like a possibility to filter out blogs or removing the most blatant dialer pages (you can't tell me that it's not possible to realize that page that has a whole dictionary in its meta tags and is linked to by thousands of other identical sites isn't fishy)

      --
      Don't think of it as a flame---it's more like an argument that does 3d6 fire damage
  3. Wow! by odano · · Score: 2, Funny

    That was quick. Slashdot posting the story and the decision within a day.

    Could this be the start of a trend in which news moves at the pace of slashdot?

  4. Next Play by scribblej · · Score: 2, Informative

    Geico sues the Yellow Pages for letting competitors advertise right in the "Auto Insurance" section!

    Seriously. I'd like to say this is the stupidest lawsuit ever, but there's been a rampant stupidity in the courts.. well, for as long as I can remember.

    1. Re:Next Play by KillerDeathRobot · · Score: 2, Insightful

      While I agree with the verdict, the case isn't nearly as silly as you make out. If you looked under Geico in the yellowpages and the things you found under that heading were Geico's competitors, I could understand Geico being a bit upset.

      --
      Thinkin' Lincoln - a web comic of presidential proportions
  5. How does this case come out against Yahoo!? by Grotius · · Score: 5, Interesting
    I wonder how this case would have come out against Yahoo! where the paid advertisers' ads appear at the beginning of the search results (albeit with "sponsor results" faintly printed above). The court could have found that it gives consumers more of an impression that Geico was somehow involved in those sites which could cause consumer confusion. Google is a harder search engine for Geico to take on because Google puts its advertisers links on the side of the results so it is clear to people that they are paid advertiser links.

    Nevertheless, it seems like the right result to me. It is difficult to imagine there is any consumer confusion when using a web search engine like Google. You enter any word, even a brand name, and you expect there to be at least a few hundred totally irrelevant results. In Google's case, you expect there to be irrelevant results including insurance companies unrelated to Geico.

    1. Re:How does this case come out against Yahoo!? by harvardian · · Score: 4, Insightful

      Overture is significantly more hands-on with ad copy and keyword selection than Google is. They routinely reject ads that might potentially violate copyright because they're "not relevant". For example, Overture probably won't let a competitor bid on the term "Geico" because "Geico" isn't relevant to an ad for "ACME Insurance" (or say they'll say). What they do explicitly allow is comparative advertising, where an ad explicitly identifies the company as a competitor and offers an alternative.

      For example, if you search for "Geico" on Yahoo you see that the ad text says things like "instant quotes from insurance companies that compete with Geico." This is an example of comparative advertising that Overture allows.

      Google, on the other hand, is much looser with what they'll allow in ads, to some degree because they have less human editor intervention and more algorithmic relevance scoring. Their business philosophy is more free marketplace/large volume oriented.

      So this is one reason you'll see companies go after Google rather than Overture. They're lower-hanging fruit.

  6. Does this mean that it's okay for everyone? by Neil+Blender · · Score: 5, Interesting

    Our company got a cease and desist from Google for using another company's name in our keywords.

    1. Re:Does this mean that it's okay for everyone? by kfg · · Score: 2, Insightful

      Yes, yes it does. That's the thing with all this suing everyone for everything. There comes a time when you might need to put up a defense that is counter to what you yourself have actually been doing.

      The sword of justice has two edges.

      KFG

    2. Re:Does this mean that it's okay for everyone? by Scrameustache · · Score: 2, Interesting
      using another company's name in our keywords

      Spamming search results is not the same thing as having an ad next to the search results.

      ...if that is what you meant by "in our keywords", I'm not entirerly sure what you meant exactly.

      --

      You can't take the sky from me...

    3. Re:Does this mean that it's okay for everyone? by Neil+Blender · · Score: 2, Informative

      Ok. It's clear to me that everyone who responded to my post either A. knows nothing about Adwords or B. did not read the article or C. both. The keywords are used in an ad campaign to show ads that you pay Google to display. Geico sued Google for allowing other companies to use the keyword Geico in their ad campaigns. Geico lost.

      Our company put the name of our biggest competitor in our keywords so that if someone search for that company, our ad would show up. Google told us in legal form to stop. In our case, I believe the company we used complained. Since we only spend about $20,000/year on AdWords and that particular keyword probably only made Google $500 out of that $20000, I am sure Google thought it easier to send us a cease and desist instead of risking a lawsuit. In the case of Geico, that keyword most likely generates millions of dollars for Google. That is the reason they went to court.

      The moral is: Google is a little more evil today than they were yesterday. (Evil in a Slashdot mentality type of way. I personally do not care.)

      ps Other companies use our name in their keywords but we don't complain.

    4. Re:Does this mean that it's okay for everyone? by Epistax · · Score: 2, Interesting

      Sorry I misread. I thought you meant you used your competitor's name as a keyword for your actual search result, not for a paid advertisement.

      However I think the google stance still makes since from their point of view. The there are two ways they can stop people from using competitors as keywords. 1) filter before hand 2) yell a complaint is filed. If they do #2, which is the easy way, they might still get sued for allowing it in the first place, unless the courts say it's legit. Even if the courts say it's legit, google can say it's against their rules so will comply when someone complains.

      I'm not saying it's the right thing to do, but I think it makes sense from Google's prespective.

  7. Hypocrisy? by coolsva · · Score: 3, Insightful

    Why is it what when claria/gator or anyone else does simillar things, it is evil, but when google does it, it is fair. I'm not against google, in fact I think they are the best thing that happened to the internet but then Geico does have a valid position. When a prospective policy buyer hears about geico on the radio or tv (paid for by Geico), they go to google and search for the web site.
    Now, I understand the ads are on the right side but the home page summary looks very bland on the search result, while the ad on the side is more attractive and the customer might go there instead.

    1. Re:Hypocrisy? by rokzy · · Score: 4, Insightful

      if I search for car insurance, I expect ads from car insurance companies.

      if I search for a specific brand, all the other brands saying "me too" piss me off. when searching for an official accessory, I don't want to see the million third-party companies selling shoddy rip-offs.

      ymmv.

    2. Re:Hypocrisy? by RobertB-DC · · Score: 2, Interesting

      f I search for a specific brand, all the other brands saying "me too" piss me off. when searching for an official accessory, I don't want to see the million third-party companies selling shoddy rip-offs.

      Then Google AdWords is doing you a huge favor! If you enter "Geico", and you see an ad for "AAA Fly-By-Night Auto Insurance & V1a6ra Outlet", you know that they think it's appropriate to buy Geico's name. As an informed consumer, you can then make an informed choice.

      Another example: I just did a Google search on "Amazon". The AdWords bar gave me two Amazon affiliates and some outfit called "superelectronics.com". I now know that "superelectronics.com" (or "freesuperelectronics.com", which is where the redirect actually points) should be avoided.

      Of course, there are always those people out there who think a little blue pill in their car insurance bill is a Good Thing...

      --
      Stressed? Me? Of course not. Stress is what a rubber band feels before it breaks, silly.
  8. or googlegear... by Anonymous Coward · · Score: 2, Interesting

    What about googlegear.com? They were forced to change names to zipzoomfly. How does that fit into all of this?

    1. Re:or googlegear... by DrinkDr.Pepper · · Score: 2, Informative

      Forced? According to zipzoomfly, they voluntarily changed their name to better reflect what they do.

      --
      0xfeedface
    2. Re:or googlegear... by Changa_MC · · Score: 2, Interesting

      but googlegear.com sounds like a subdivision of google, where betterthangoogle.com does not.

      --
      Changa hates change.
  9. All Gone by Zegnar · · Score: 2, Interesting

    Although it seems that 'at time of going to print' Google have removed all ads from a search for 'GEICO'. How nice of them :/

  10. correlation? by viva_fourier · · Score: 3, Insightful

    Hmmm, Google goes public, stock price soars 100 points.... how can we grab some of that cash...
    Let's ask our lawyers!

    --
    and now back to the fallout shelter...
  11. save 15% or more by Nitroshock · · Score: 4, Funny

    Google Adwords, because 15 minutes could steal you 15% or more potential Geico customers. -Nitro

  12. Of course I didn't RTFA by 31415926535897 · · Score: 3, Insightful

    I didn't read the article or the judgment, but this is common sense.

    Google shouldn't have to babysit every ad that is sold. At the same time, the article summary gives the impression that Google is allowed to advertise themselves using a trademarked name, but Google is just selling ads to whomever will buy them and allowing these users to place whatever text they want.

    I would be willing to bet that there is trademark infringement, but Geiko is going to have to go after the companies that are buying the ads.

    You know, this seems very similar to the whole P2P argument going on. The *AA are trying to stop the vehicle of p2p when it can be used for good or evil when they should be going after the specific infringers. This seems very similar. Google just provides a vehicle for advertisement. This can be used for good or evil, but Google should not be held liable for the evil of others. And I almost wish this could be used as a sort of precedence, but I don't think our legal system would understand the logic.

    Nevertheless, I digress...

  13. Its all about advertising by eneville · · Score: 2, Insightful

    I think the whole case is an effort to gain advertising hype. I could be wrong though.

  14. The bad news is by Anonymous Coward · · Score: 2, Funny

    that Geico Lost.

    The good news is I made hundreads using google stocks.

  15. Already Someone Bandwagoning On This by shawnmchorse · · Score: 5, Funny

    The first sponsored link I saw with the Google search for "geico" was this:

    It's Only Me, Dave Pell
    I'm taking advantage of a popular
    case instead of earning my traffic.


    Cute. So cute I felt compelled to click on the ad once just because I knew he'd get billed for it by Google at the end of the month.

  16. Coincidence? by mikeswi · · Score: 4, Funny

    I wonder if it is a coincidence the six of the first eight google results for a search for Geico comes up with links to information about Geico's lawsuits?

  17. Good news for GEICO by GillBates0 · · Score: 2, Funny

    I saved a bunch on my car insurance!

    --
    An Indian-American Hindu committed to non-violent thought/speech/action alarmed by the global explosion of radical Islam
  18. I'm a little unsure why they sued google by Clockwurk · · Score: 2, Interesting

    I think this was a good decision by the judge, it frees google of having to research trademarked keywords and yet it still keeps the door open for companies like Geico to sue companies that abuse their trademark.

  19. And the Lord broke the sixth seal... by Weaselmancer · · Score: 2, Funny

    ...and a federal judge made a ruling with computers involved that made sense.

    --
    Weaselmancer
    rediculous.
  20. My business also targets competitor keywords by Goldenhawk · · Score: 4, Interesting

    My small business has a product we advertise using both Google Adwords and Overture... very useful methods of advertising. I've found one of my most productive ad buys is using my primary competitor's product name as a search term. And I'm absolutely certain I'm not the only one doing this, and frankly I don't feel the slightest bit bad about it. Customers looking for a product are often looking for a class of products, not the specific product, and simply only know one particular brand name to search. (How many people are looking for copiers in general when they type "xerox"?)

    After all, it wasn't too long ago that it was ruled okay to refer to your competition in an advertisement (like Coke mentioning Pepsi, etc.), so this is just another example of the same thing.

    Also, even in the non-targeted (non-paid) results, you'll often find multiple competing products, simply by virtue of similar characteristics and reviews of multiple products on a given page.

    --
    --Brandon / Split Infinity Music

  21. Geico is cheap by Aggrazel · · Score: 4, Interesting

    When the lawsuit story broke, just for fun I added "geico" to my list of adwords. I put it on as 0.05 per click.

    Guess what, even then my ad was placing 2nd or 3rd on the list, for a nickel!

    If Geico is so bent up about people searching their name finding other competitors, why don't they just pay for some ads on their name themselves. Its not like it costs a mint, and they are rich bastards.

  22. Geico routinely sues by cat_jesus · · Score: 5, Informative

    Geico sends C&D's and sues people all the time over weird shit like this. Upper management seems to be pretty clueless about the internet. If you have a domain name with Geico in it, you will be contacted eventually and threatened.

    It's funny though because they took the domain http://geicosucks.com from someone and decided to point that domain name to the same ip address as geico.com. So you can get a quote and everything from geicosucks.com. They could have done a simple redirect but their internet "expert" claims that they would have to get another $10K web server in order to do a redirect from geicosucks.com to geico.com

    Of course the PHBs won't listen to anyone but the buttmunch who insists that they'd need a new server for a redirect. Funny how the useless and clueless IT people end up in managment.

  23. Re:In other news... by TCQuad · · Score: 3, Funny

    Ben Affleck, star of such films as Gigli, recently sued AFLAC insurance, claiming that their ads implied that he was a duck.

    The AFLAC duck then sued for defamation, claiming that being associated with Affleck diminished any chances of being taken seriously as an actor. He was awarded $10 million.

  24. Clarification of French Advertising Law by rsborg · · Score: 3, Informative
    So as happy as we are about this ruling in the States, it looks like France isn't so keen on letting companies bid on their competitors' trademarks.

    As grim as it sounds, I think that you first have to understand the law in that country first...

    AFAIK and IANAL/JNSPUA (Je ne suis pas un avocat), but French law dictates that all advertising cannot be comparative, ie, Evian can't say they're better than Perrier, for example. They have to use non-comparative sales tactics.

    So, naturally, extending this policy to the internet, when you lookup GEICO in this case, you should not expect to see their competitors (assuming search == advertising in legal terms). And cosumers in those countries would not expect to see it either.

    --
    Make sure everyone's vote counts: Verified Voting
  25. New GEICO Ad Transcript by rock_climbing_guy · · Score: 2, Funny
    Exec: How is that lawsuit going? I heard that we were expecting a ruling from the judge today.

    Lawyer: I just got back from the court where the judge issued the ruling today, and I have great news!

    Exec: We've been awarded damages from Google?

    Lawyer: I just saved a load of money on car insurance by switching to GEICO!

    --
    Wh47 d1d j00 541, 31337 15n't t3h r0xor5 ne m0r3???
  26. Sensitive About Trademarks by Dynamic1 · · Score: 2, Informative

    This reminds me of Penthouse sending nasty cease & desist emails to webmasters that included the word "penthouse" in META tags or web content. Webmasters will typically do something like that to try and draw traffic from search engines by using such keywords as "penthouse".