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Google Ruled a Trademark Infringer

Stephan writes "Google lost a trademark-infringement case in France. News.com is reporting that a Paris District Court ruled yesterday against Google in a lawsuit filed by high-end fashion designer Louis Vuitton. The company is suing Google for allowing its competitors to buy targeted ads on the search engine's search results pages that use or are associated with the Vuitton trademark. The court charged Google with trademark counterfeiting, unfair competition and misleading advertising. Google was ordered to pay $257,430 (200,000 euros). Google is facing similar lawsuits in different countries. In the United States, the company recently won a favorable ruling in a similar case brought by GEICO, the car insurance company."

30 of 537 comments (clear)

  1. This is plain stupid. by tomhudson · · Score: 3, Insightful
    What next - being sued because you bought yellow pages advertising on the same page as a competitor?

    How the f$ck is this trandemark infringement?

    1. Re:This is plain stupid. by Moby+Cock · · Score: 3, Insightful

      Because they are making money of a trademark they don't own.

      It's not complicated.

    2. Re:This is plain stupid. by tomhudson · · Score: 5, Insightful
      They are selling AD SPACE. If I have a Mazda to sell, I can mention the Mazda trademark in ads. If I buy ad space in the newspaper opposite a full-page Honda ad, or on the same page as a story about GM opening a new plant, that's their tough shit. Sure, my ad will be seen by more people because it's next to something else - that's life.

      People doing searches for Louis V-whatever-the-frig-handbags are going to see ads for others - boo hoo.

    3. Re:This is plain stupid. by Moby+Cock · · Score: 1, Insightful

      They don't charge Coke a fee to be in the store. They buy the Coke and sell it.

    4. Re:This is plain stupid. by hanssprudel · · Score: 2, Insightful


      Have you used Google lately? It isn't the yellow-pages, it is a search engine, and searching for Louis-Vuitton turns up guess who as the first hit.

      The advertisements pruchased by competitors where clearly marked as such and on the sides.

    5. Re:This is plain stupid. by tomhudson · · Score: 2, Insightful
      So what?

      It's not like there's a finite amount of ad space - advertising space grows as the budget for it grows.

      Let's reverse your scenario - according to your way of thinking, Microsoft shouldn't be allowed to advertise in Linux Magazine.

      It's advertising, and that's the nature of the beast. Or would you also restrict people from mentioning openoffice when people ask about Microsoft Office? Or Firefox when people search for Internet Exploder?

    6. Re:This is plain stupid. by squiggleslash · · Score: 5, Insightful
      It's more the case of (to use your example) Ford outbidding Mazda for the advertising space on their name. You search for Mazda and up comes Ford.
      I honestly don't think Mazda would mind...

      Anyway, I still don't see the issue with respect to Google. You can't buy "all the advertising space" related to your rival with Google, all you can do is have it so your advertising comes up if you search for that rival.

      From the point of view of an end user, this is far from evil or misleading. This isn't about people trying to pass themselves off as a company, it's simply marketing to people interested in a particular product. If I search for "Biro", the chances are I want a pen. If I'm searching for something specific to Biro (like "How do I contact them about repairing this pen"), then the relevent links will appear on the left, as always. If I'm looking to buy a biro, then I'll be interested in the unobtrusive links on the right from companies that feel I may be interested in their product. Maybe I would prefer a Parker. Maybe I want to buy the Biro from WHSmiths.

      I think the fairest comparison is actually Parker Pens going to a newspaper and saying "When you next do a story concerning Biros, can you put our ad next to it?"

      That shouldn't be considered trademark infringment, and it's certainly not evil business practices. Trademarks were intended as a way to guarantee against fraud, as one group passing its products off as the other's. It strikes me that the laws here are being taken to go far beyond that remit, to the point that it threatens speech instead. If they carry on this way, just as the DMCA is undermining the legitimacy of copyright, and software patents the legitimacy of the patent system, they risk undermining trademarks too. Legislatures need to intervene and stop this abuse.

      --
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    7. Re:This is plain stupid. by h4rm0ny · · Score: 2, Insightful


      I've already answered this below (both typing at the same time, I guess), but as this is directed at me, I'll just make two points.

      There is a finite amount of ad space, you're wrong in this. The space is limited by the readers attention span. Probably the first few entries count, maybe the whole page if she's really doing comparison shopping. At most though, seven or eight little google ads are going to be looked at. The issue is whether someone else can use your own name for advertising against you.

      My second point, and the main reason for replying, is that you've either misunderstood me or deliberately misinterpreted what I said. I never said that Microsoft should or shouldn't be allowed to advertise in Linux Magazine. I just thought this was a better analogy for people who don't RTFA than using the word Mazda in a small ad selling a Mazda, which is not the same principle at all.

      All that I did in fact, was clarify the issue for people who might have been misled and said their were interesting issues to think about. Contrary to what you say - "advertising - it's the nature of the beast" - we together can decide the nature of that beast; it isn't set in stone. You will find that as of today, advertising is a slightly different beast in Europe than it is in the USA.

      You can see my other post for my thoughts on which beast suits society the best.

      (And for the record, MS can advertise in Linux Magazine all they like - it's probably the biggest admission of fear they could ever make ;)

      --

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    8. Re:This is plain stupid. by tomhudson · · Score: 3, Insightful
      First - I'm not from the US (though I had to go down there 4 times a couple of weeks ago).

      Second - as another poster pointed out, it's perfectly legal in France to mention competitors in ads, but it hasn't been done until recently.

      Third: the article is bullshit. Look at this quote:

      "This milestone ruling grants protection for the first time to both consumers and brand owners by finding that Google's Adwords and Premium Sponsorship services as misleading advertising services," the representative added.
      How is restricting letting consumers find competitors a "protection to consumers"? It's a boot heel on their neck, by brand owners over-extending their "rights" to help stifle competition, that same competition which is what really benefits consumers.

      Fourth: Misleading advertising? The ads were clearly labeled as ads. And, unlike most media, where you have to "contact their media department", google's policies are a click away.

  2. Versus Billboards by dominator · · Score: 4, Insightful

    IMHO, this is a pretty bogus ruling. The ads are distinct from the regular results and marked as such, so there's little grounds for any of the typical trademark "confusion" statues to apply. I don't think that this case would pass muster in a US court.

    In short, I fail to see how Google selling Louis Vuitton adwords to LV's competitors is any different than State Farm putting up billboards across the street from Geico offices or Viagra buying an ad on the page after a Cialis article in Men's magazine. It's nothing more than good business sense. It isn't TM infringement.

    1. Re:Versus Billboards by dominator · · Score: 3, Insightful

      Here, I have to disagree. Putting up billboards across the street is not the same thing. This is more like putting a phone tap on the line, and setting it up so that each time someone calls Geico, they get an intercept telling them how wonderful State Farm is.

      Importantly, nothing gets intercepted, because the main search results still go through to Geico. What's added is a small annotation saying that if you're interested in Geico, you might want to check out State Farm instead.

      If rulings like this stand, I think the next rung of lawsuits against search engines happens when Geico isn't the first search hit for "Geico" or if "State Farm" shows up second on the search results page. [tongue-in-cheek]Brand Confusion, I tell you![/tongue-in-cheek] At least in the current case, "State Farm" is marked as an advertisement and displayed *distinctly* from the main results.

      What else would rulings like this ban? Miller ads that say - "half the carbs of Bud light" Or "Aleve lasts twice as long as Tylenol"? Comparitive advertisement is a cornerstone of the US marketplace. I understand that it is much less so (if not altogether verboten) in Europe.

      In any case, whatever you want to call this, it ain't TM infringement.

    2. Re:Versus Billboards by DirePickle · · Score: 5, Insightful

      It's more like looking up a company in the yellow pages, and finding competitors' ads right next to it.

    3. Re:Versus Billboards by PxM · · Score: 2, Insightful

      Here, I have to disagree. Putting up billboards across the street is not the same thing. This is more like putting a phone tap on the line, and setting it up so that each time someone calls Geico, they get an intercept telling them how wonderful State Farm is.

      Except that a phone intercept prevents the person from talking to Geico. This would be more like the Time magazine have an ad in Newsweek or cable providers carries ads for satellite TV. Neither interferes with the customer's ability to achieve their original goal.

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    4. Re:Versus Billboards by St.+Arbirix · · Score: 2, Insightful

      Here, I have to disagree. Putting up billboards across the street is not the same thing. This is more like putting a phone tap on the line, and setting it up so that each time someone calls Geico, they get an intercept telling them how wonderful State Farm is.

      It's probably more like an advert on a train timed to show off State Farm ads when the train is pulling up to the Geico stops. The ads can be ignored.

      I think the bigger factor here is that Google was bringing to France foreign competition to French companies. As protectionist as much of their government has been lately the simplest explanation is that their judicial system is the same.

      --
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  3. Stupid! by hanssprudel · · Score: 4, Insightful

    Stallman likes to point out that the term "Intellectual Property" is a fallacy in the sense that copyright, patents, and trademarks are very different things that need to be discussed seperately. But one can at least identify one problem that they are all suffering from: courts and lawmakers forgetting their actual purpose, and treating them like they exist to protect incumbant companies.

    In the case of Trademark, it's purpose is not to protect companies that take out trademarks, but to protect _consumers_. The point with trademark is that if I want a Coca-Cola, or a Louis-Vuitonn bag, I can be sure that what I buy is actually such a product, and not a cheap knock-off. Without trademark laws, it would be next to impossible to know what you are buying. That this leads to brands with incredible value is entirely incidental, and possibly not entirely positive.

    So, in this context, the ruling could not be more stupid. How does it, in any way, hurt the consumer that competitors can advertise under queries for Louis-Vuitonn? As long as the ads are clearly marked as being adds for somebody else (as they are on Google), this will only increase competition and give the consumer more choice.

    One can understand why Louis-Vuitton might not like that, but the role of the courts ought not be to do their bidding!

    1. Re:Stupid! by cpt+kangarooski · · Score: 2, Insightful

      Actually it is both -- trademarks mainly exist to protect customers, but there is also a recognition that it is not a fair trade practice for one company to leech off of the goodwill in the minds of the public that another company has accumulated.

      --
      -- This and all my posts are in the public domain. I am a lawyer. I am not your lawyer, and this is not legal advice.
    2. Re:Stupid! by Anonymous Coward · · Score: 1, Insightful
      Bullshit. Those ads are selling knock-off crap.


      Then Louis Vuitton should sue the companies selling the knock-offs, not google.

  4. Re:Screw France by nkh · · Score: 4, Insightful

    There is no anti-americanism in France, it's just a stupid court order. As for the nazi Yahoo auctions, it's just that Europe has a different version of what is free speech, which is comprehensible from a geographical point of view: Germany (with the Hitler guy) is in Europe.

    Of course I don't pretend I can explain this court order, but it has absolutely nothing to do with the USA, GWB, the Irak war, the Nazis or an international Jewish/Freemasonry conspiracy, just some trademark issues.

  5. Re:Screw France by Richie1984 · · Score: 3, Insightful

    The fact that they are messed up to begin with...France is irrelevant.

    That's rather extreme. Just because the French state has different political views and opinions to you, doesnt mean they are any less valid. We don't know enough about the case to judge whether or not their was any bias, so jumping to these sort of conclusions is not particularly helpful.

    --
    I'm not stressed. I'm just terribly, terribly alert.
  6. Re:Unfair Ruling by bersl2 · · Score: 3, Insightful

    I thought France had a relatively free market?

    Choice quote from Wikipedia entry "Economy of France": Government spending, at 53% of GDP in 2000, is the highest in the G-7.

    Usually, that's indicative of a planned economy.

  7. Pay 'em and Cut 'em Off by Simonetta · · Score: 1, Insightful

    If (and I suspect that is a big if) Google is forced to comply with this extortion on the part of the French government, then Google should absolutely refuse to allow of their search engine or advertising services to anyone accessing their site from a .fr domain.
    What the French government doesn't quite seem to understand is that, in the information age, France is just another brand. And, a minor legacy historical empire one at that. Notwithstanding the fact that the government of France is the king of all shit in the hexagon of land between Germany and Spain, Atlantic, and Mediteranian. And fully recognizing that France is the mother of western civilization and the primal definer of the good life, outside of France the French government doesn't amount to much.
    Attention, mes amis, don't put yourselves in the position of forcing us to choose between Google and France. You won't be happy with the results. We like France; we need Google. We don't particularily need or like Louis Vitton company or their rich parasitic customers.

  8. The real reason this is stupid by drinkypoo · · Score: 4, Insightful

    LV is trying to claim that Google, a company which is not beholden to them, has somehow diluted their trademark by associating other companies with it. However, if google didn't index pages linking to them, or their pages, then they wouldn't come up at all. When X is the amount of business driven to LV by google, and Y is the percentage of that business lost by people buying competing (and sometimes knockoff) products, Losing Y percent of X still leaves you with infinitely more profit from that source than you paid for.

    In other words, google is a free resource and they have no right to bitch about what ads are shown along google searches for their trademark.

    The counterargument is probably that because google is ubiquitous in search, they have an unfair position in the market from which to do things like this. However, they are anything but a monopoly, so that argument really doesn't wash - especially since it's not illegal to sell LV and a competing product in the same store (unless the competing product is illegal anyway) so it makes no sense to make it illegal to mention them together on the same web page. But then, most legal systems since Hammurabi are not based on what makes sense for the most people.

    --
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  9. Re:Microsoft buys "Linux": An interesting parallel by geekoid · · Score: 2, Insightful

    "This is clearly not an acceptable practice. "

    why not?

    As long as it's an ad.

    On a poractical note, if someone is looking into Linux, then they know the MS viewpoint already.
    This will be true with just about any product.

    It is perfectly reasonably for me to put an ad for my product on a billboard near a competitor.

    --
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  10. Re:Most People Can't The Difference by RWerp · · Score: 1, Insightful

    So it is google's fault that some people are functionally illiterate? I can tell the difference between the search results and the ads. They are very, very clearly marked. What should google add? "HEY PEOPLE! THESE ARE ADS!!! BEWARE!!! BIG, GREASY, STINKING ADS!!!"

    --
    "Long run is a misleading guide to current affairs. In the long run we are all dead." (John Maynard Keynes)
  11. Shunning. by ninejaguar · · Score: 2, Insightful
    What do I suggest to stop this sort of sillyness ? Anyone who goes after google like this should quite simply have their pages removed from the index. "Got a problem with our system? then you dont need to be in it, goodbye". Now THAT is a strong deterrent. Those whiny bastards would think twice.

    It would be similar to a village turning their collective backs on a miscreant in their midst as if he/she never existed. They've been shunned. Imagine, any reference whether it be a personal page, or a blog, or even a particular page from a store advertising the trademarked name completely being wiped off any possible combination of searches. The beauty of it is, they could just set the filter for France, just like they probably do or eventually will set up human-rights filters for China. That company would get no free advertising within their own country on Google. Pretty powerful statement. However, in America, Google could continue business as usual with the trademark since it's legal there.

    = 9J =

  12. Re:Extremely misleading translation. by gronofer · · Score: 2, Insightful

    This is interesting. But in this case, is it reasonable to hold Google responsible for this violation of French law? Google provides an automated system where others can pay to have ads attached to particular search results. I would have expected whoever commissioned the ad to be responsible in this case and not Google.

    I am not sure what the consequences of this decision will be for Google. Must they now maintain a list of every trademark registered in France (I suppose there will be millions) and apply personal judgement on whether a particular advertisement would be acceptable? This would completely destroy their business model, and without a business model, why bother to provide a search engine to the French?

    When you say "we don't care", who are you speaking for exactly? The average Internet user in France, or French lawyers?

  13. Think about it by mynameismonkey · · Score: 2, Insightful

    "Psst. Hey, if you give me $1,000 I'll make sure the next 100 customers trying to buy an LV bag get to your site instead, where possibly no LV bags are sold, although similar products are available for sale."

    Of course, that's not Google's intent, but it *is* what happens. Company X is profiting from LV's trademark. LV spent huge amounts of money to build that mark, and it is common in Europe to disallow mention competitor's names or marks in advertising, let alone attempt to divert spending power by redirecting customers.

    --
    -- Religion is not an exact science
  14. Why is Louis Vuitton acting unethically? by Jamesday · · Score: 2, Insightful
    It should work in exactly the manner you've said is wrong. If Ford pretends to be selling Toyota cars, that would be a passing off problem but that's not what is happening here. The ads are correctly describing what is being sold and the trademark is used solely to ensure that the ads appear in their correct position, adjacent to the intended search results. Not replacing them, but adjacent to them.

    Google is acting in the manner most consistent with the interests of the consumer.

    I suggest that Louis Vuitton deal with the fact that yes, they do have competitors who do buy ad space adjacent to their products. Trying to insist that competitors products not be placed adjacent to theirs is not in the interests of consumers. It's Louis Vuitton which is acting improperly and should be fined in this case.

    Meanwhile, I'll remember that Louis Vuitton apparently has so little confidence in their products that they need to try approaches I consider to be unethical to try to stop consumers from finding out about the alternatives in the marketplace.

    Please note that Slashdot displays the destination of links adjacent to them, so no reader of this post can possibly be confused about where any of the links I have used goes. And yes, this post is intended to be amusing as well as make a serious point about competition, lack of consumer confusion and ethics.

  15. Typical: Attacking the biggest, not the guiltiest by DunbarTheInept · · Score: 2, Insightful

    Do I think a wrong is done when someone buys an ad that hijacks a competitors trademark and redirects it to a knockoff business? Yes, of course. But the guilty party is the one who bought the ad, NOT the one whom the ad was bought from (Google). What this ruling says is that it is Google's responsibility to have hordes of people manually checking on every single keyword anyone ever buys to check it for trademark overlap. Yah, that's really fucking fair.

    If I take out a classified Ad in the newspaper that makes fradulent claims, then *I* am the one responsible for the fraud, not the newspaper. This should be the same way.

    But, of course, that's not the way the bullshit courts in the world work. Instead people attack the richest party that was even slightly involved, because that's where the big payout is, instead of attacking the guiltiest party.

    --

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  16. Re:Unfair Ruling by Anonymous Coward · · Score: 1, Insightful

    or that they care for their people and provide health care, transportation etc.