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French Court Orders Google to Stop Competing Ad Displays

charleste writes "NPR is reporting that a French court has ordered Google to stop displaying ads when users search for competitors (e.g. if you search for Louis Vuitton, no more ads for Dior). If this holds up, wouldn't this affect most business models for free web tools?" CNET also has details , and information about previous cases.

52 of 630 comments (clear)

  1. And who by JPelorat · · Score: 5, Insightful

    Is going to determine and keep track of which companies are competitors? How the hell is anyone supposed to do that for every single company in existence?

    --
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    1. Re:And who by cybersaga · · Score: 5, Insightful

      The government doesn't enforce it. They just wait for someone to sue. It's like every other law.

    2. Re:And who by saider · · Score: 2, Insightful

      Is going to determine and keep track of which companies are competitors? How the hell is anyone supposed to do that for every single company in existence?

      The company taking the orders. Remember this is a trademark issue and another company paid Google to serve up ads on a trademark that was not theirs.

      This will end up as a legal phrase in the contract on the lines of "all the adwords that you are requesting are not trademarked by other companies in your industry". And I'm sure the fine folks at google will simply develop a tool to help them determine if a company has rights to a particular word.

      So Chevrolet cannot get ads when people search for Mustang. BMW cannot get ads when people search for Boxter. Etc. This is not suprising or unreasonable.

      --


      Remember, You are unique...just like everyone else.
    3. Re:And who by mzwaterski · · Score: 3, Insightful
      The government doesn't enforce it. They just wait for someone to sue. It's like every other law.

      Maybe you just weren't clear with what you were saying, but trademark law is not like EVERY other law. Take for example any criminal law. Whereas trademark matters are almost entirely civil matters (person A sues person B), criminal law is, well, criminal (Gov't/State vs. person B). Its a really big difference.

    4. Re:And who by gowen · · Score: 2, Insightful

      You don't have to. You just stop companies buying keywords that are other people's trademarks. And you don't even have to enforce that -- just reserve the right to unilaterally cancel the contract in the case of a rival pointing out that this has been done.

      Easy peasy.

      --
      Athletic Scholarships to universities make as much sense as academic scholarships to sports teams.
    5. Re:And who by leoboiko · · Score: 2, Insightful

      I'm sorry, but your Linux company has been demeed a competitor by Microsoft. Now when your users search "microsoft samba incompatibility" they won't be able to find that useful error description in the help forum.

      --
      Prescriptive grammar:linguistics :: alchemy:chemistry. Stop being a nazi and learn some science.
    6. Re:And who by arkanes · · Score: 2, Insightful

      I think it is unreasonble, because it essentially makes Google liable for litigating trademark claims. Remember that trademarks are only within a certain market, but that the scope of that market can vary considerably depending on the court and the company involved - you aren't going to get away with marketing a Coca-Cola anything, but a Compaq washing maching is much more reasonable. Does BMW compete with Hitachi? I don't know. Do you? How about IBM? And, more likely, who does Anderson Computing compete with? Fred's Computing? Jack's Repair Shop?

    7. Re:And who by null+etc. · · Score: 5, Insightful
      This is not suprising or unreasonable.

      In which world do you live?

      I find this highly unreasonable. Right now, it is permissible for Company A to advertise its products on a huge billboard right in front of Company B's building. Are you suggesting this practice be banned too?

      A magazine has an article about Microsoft security. On the adjoining page is a full page advertisement for Red Hat Linux. Should that practice be banned too? Because that's done in nearly every major magazine.

      Extend this theory a little farther. A user enters a search for "Mustang", and gets back a link to a website. The user clicks the website, and sees information and advertising regarding both Mustangs and Chevrolets. Is that permissible?

      A trademark is just that - a mark under which a company performs trade. A company that owns a trademark is only entitled to protection that guarantees that no other company sells similar products or services under the same trademark.

      I fail to see how this protection entitles the obstruction of a competitive free market, just to protect some company who can't compete on other fronts.

    8. Re:And who by paganizer · · Score: 5, Insightful

      Remember all the problems Yahoo had with france?
      I think it makes more sense for any information company to block all french government IP's; If a bunch of idiots is going to continually harass and annoy you, don't deal with them.

      --
      Why, yes, I AM a Pagan Libertarian.
    9. Re:And who by jrockway · · Score: 3, Insightful

      I agree with you here. Google and Yahoo are constantly harassed by the French. I would just pull out of the country and tell the government to fuck off. French "law" doesn't apply in the US. If they don't like google, then they can block it.

      --
      My other car is first.
    10. Re:And who by Lord+Apathy · · Score: 2, Insightful

      Tell me about it. What I don't understand as an American company why don't Google just tell france to 'Fuck off.' Yahoo should have just told them the same thing. What are they going to do? Invade and shut down the server.

      --

      Supporting World Peace Through Nuclear Pacification

    11. Re:And who by Infinity+Salad · · Score: 3, Insightful
      True, and don't forget that the government can go after you in civil court (an alternative to criminal prosecution are certain kinds of fines).

      In the US, the government relies on private parties to enforce many of its laws ("exporting enforcement" in legal buzz ). This is (partly) why the US has a 'plaintiff friendly' court system that doesn't punish you for an unsuccessful suit (compare to the UK, where the losing party pays lawyer fees). The theory goes that by leaving it to private parties, those who are harmed by the 'illegal' doings will take action and save the gov't prosecution costs, which can in turn be spent on other things.

      Trademark, patent and copyright are interesting hybrid areas where civil parties can get petition the government to get involved and block importation of (possibly confiscate and destroy) patent-busting or trademark/copyright infringing items at the border.

    12. Re:And who by anti-trojan · · Score: 2, Insightful

      Google is an international company. What happens if Google wants to launch an EU office in the future and France vetoes them? They have to be politically correct.

  2. Missing the point of the judgement by jolyonr · · Score: 5, Insightful

    The whole point of the judgement is that Dior (or any other company) couldn't buy adwords on Google targetting the search term 'Louis Vutton' or vice versa. Nothing to do with web tools or other such nonsenese. RTFJ!

    Jolyon

    --


    Please read my Canon EOS tech blog at http://www.everyothershot.com
    1. Re:Missing the point of the judgement by DarKnyht · · Score: 2, Insightful

      And what is so terrible with someone advertising an alternative to a product? It happens all the time when you go to a store and make a purchase off of a shelf. You do not see Coke products on the other side of the store from Pepsi products, but Coke and Pepsi products next to each other.

      More to the point, a trademark is not intended to prevent someone from not being able to describe a product as like Coke, but to prevent someone from packaging a product to look exactly like someone else's. Google's adwords just describe the product, they don't package it as the competitors product.

      --
      Voting them all out of office, now that's change I can believe in.
  3. No jurisdiction by ee_moss · · Score: 5, Insightful

    How would France have the jurisdiction to affect the way an American company operates?

    1. Re:No jurisdiction by Singletoned · · Score: 5, Insightful
      How would France have the jurisdiction to affect the way an American company operates?

      I'm going to take a wild stab in the dark and suggest that the law will apply to Google's French subsidiary, Google.fr, rather than Google.com.

    2. Re:No jurisdiction by Not_Wiggins · · Score: 4, Insightful

      I'm going to take a wild stab in the dark and suggest that the law will apply to Google's French subsidiary, Google.fr, rather than Google.com.

      While at first blush that might sound reasonable, it really doesn't have anything to do with jurisdiction.

      For example, so long as Google's servers are hosted in the US, the only thing France could do is block their country from accessing Google's servers, and that isn't going to happen.

      No, I think another well-informed reader hit it on the head: it would make sense to have a policy in place about competitors buying ad words that are the name of the competing company. But the only way that would work is to have the companies themselves police it (ie, do searches and see if someone else is potentially infringing with paid ads).

      At that point it could be brought up in court, but it wouldn't need to involve Google at all; company A can just sue company B saying they're abusing copyrighted names yadda, yadda, yadda.

      --
      Diplomacy is the art of saying, "Nice doggie!" until you can find a rock.
  4. Amazon... by LurkerXXX · · Score: 3, Insightful

    So does that mean Amazon shouldn't be showing what other books people who searched for a certain one also bought? They might be costing a sale of the original book if the add shows a book with similar content they chose instead if it.

    1. Re:Amazon... by Saxton · · Score: 2, Insightful

      Unrelated. Amazon can show whatever they want, and recommend whatever they want.

      The issue here, as pointed out in a comment from the previous existance of this story is that a company is specifically and intentionally making money off of someone else's specific trademark.

      -Aaron

      --
      My name is Aaron Landry, and I approve this message.
  5. This will fly by spidergoat2 · · Score: 4, Insightful

    Till they figure out that someone typing 'Goodyear' won't be able to see a 'Michelin' ad....

  6. Self-policing (was: Re:And who) by Gigabit+Switchman · · Score: 2, Insightful

    That's a self-solving problem, actually... it's the PAID advertising that's the issue, I believe. For instance, one of my company's competitors pays to have their product show up if someone searches for our company name... if it were in fact illegal to buy search terms that included another company's trademarks, then WE would be the ones to report it...all the courts would have to do is respond to complaints - same way it works now.

    Unfortunately, Google won a similar case in the US, so our competitors can continue this practice that I, at least, see as a bit unethical.

    1. Re:Self-policing (was: Re:And who) by arkanes · · Score: 5, Insightful

      I don't see whats unethical about this practice. It's called competition - it's not like they're picketing your business or something, they're creating a way for them to gain equal time in customer mindshare. More importantly, you're still ahead, because they're searching for *your* name, but your competitor has to pay to get his name out there. Trademark creep is just as annoying as all the other kinds of creep out there - it's supposed to ensure that you can do business under your mark without the risk of someone else masquerading as you. That's all, it's not supposed to be some sort of stick you can use to beat away competition.

    2. Re:Self-policing (was: Re:And who) by Anonymous Coward · · Score: 2, Insightful

      Unethical = wrong.

      Unethical != illegal.

      Much like it is unethical to sleep with a subordinate (or superior) coworker, but it is not (or should not be) illegal.

    3. Re:Self-policing (was: Re:And who) by DavidNWelton · · Score: 2, Insightful

      Well, you're free to buy the search terms for your own company's name and your competitor's name as well, so I don't see the problem, even if I can certainly understand the annoyance. It creates the potential for a bidding war where none existed before.

      I wonder if this means that OSDL or someone could sue in France to have MS not pay for the 'Linux' search term. MS are currently doing that in Italy (look at the ads on the right, and maybe click on it to transfer a few cents from Microsoft to Google:-)

      http://www.google.it/search?hl=it&q=linux&btnG=Cer ca+con+Google&meta=

    4. Re:Self-policing (was: Re:And who) by dgatwood · · Score: 2, Insightful
      Until that relationship leads to a contract being awarded to someone inappropriately (for example). Then it becomes potentially illegal.

      Unethical actions are inappropriate until they result in someone else being harmed. At that point, they often become illegal, depending on the nature of the action, the harm, and whether the harmed person/company decides to press charges.

      --

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    5. Re:Self-policing (was: Re:And who) by Qzukk · · Score: 4, Insightful

      all the courts would have to do is respond to complaints - same way it works now.

      At how many tens of thousands of dollars per complaint?

      a bit unethical.

      Ethical or not, its a near-impossible problem. Google would have to maintain a massive database of every potential competitor for every possible keyword. And then, if I search for "Anderson", whose ads are forbidden from showing up? Does the user want Anderson Accounting? Anderson Computers? Anderson Farms? Anderson Law Firm? Anderson & Samuel Law Firm? Anderson Anderson Anderson & Sons Law firm? You can bet if the wrong law firm showed up, they'd all be lined up to sue.

      --
      If I have been able to see further than others, it is because I bought a pair of binoculars.
    6. Re:Self-policing (was: Re:And who) by arkanes · · Score: 2, Insightful
      In the US, companies avoid doing this because it opens them to liability if they (accidently or on purpose) misrepresent the abilities of the competing product. The do compare themselves when the comparison is subjective (taste tests) or when it's very simple (MSRP for our car is $5000 less than some other car). This is also a totally different issue than simply creating an equal ground in advertising. In fact, at least in the US, it's more common than not - the exit gates at any airport will have tons of adds for hotels and car rentals, from all different companies.

      I'm boggled by the idea that a country would actually make it illegal to compare oneself to a competitor based on actual criteria. How else are you supposed to make informed buying decisions?

    7. Re:Self-policing (was: Re:And who) by Moofie · · Score: 5, Insightful

      "How else are you supposed to make informed buying decisions?"

      What on earth does making informed decisions have to do with advertising? Advertising is the polar opposite of encouraging people to make informed decisions. The purpose of advertising is to encourage people to make UNINFORMED decisions.

      --
      Why yes, I AM a rocket scientist!
    8. Re:Self-policing (was: Re:And who) by jadavis · · Score: 3, Insightful

      To play devil's advocate:

      Company A starts selling a gadget that nobody knows about. It starts an expensive marketing campaign to show how it helps an average person in everyday life. People didn't know the product existed before, but are now very interested in the product.

      Then they search for your creative, trademarked company name in google. Then they see an ad for company B (which cost company B $0.25). Company B is a factory outlet who has no marketing budget. The price from company B is half the price from company A because company A must recoup its marketing costs. Now the consumer buys from company B.

      In this case it doesn't seem fair. Although the alternative (laws controlling advertising more) might be much worse.

      --
      Social scientists are inspired by theories; scientists are humbled by facts.
  7. Re:Give me a break! by Peyna · · Score: 4, Insightful

    You missed the point entirely. Google is allowing someone to buy "Vuitton" as a search term, and then permitting their competition or "counterfeits" to be displayed when the trademarked term is searched.

    This has nothing to do with generic search terms.

    --
    What?
  8. Re:Geographical laws? by BluedemonX · · Score: 2, Insightful

    Before you get all huffty and high and mighty, please remember that there are Canadians dealing with problems in the United States stemming from the fact that while in Canada they did business with Cuba, and america seems to think that its anti-Castro laws extend beyond its borders into Canada.

    That being said, yeah the French think they have the authority over everyone. The Quebecers are the same way. It was funny, them demanding that Pokemon produce French only versions, etc.

    --

    --- Jump!! Fire!! Bullet time!! - Lego version of the Matrix
  9. Let Google remove their listing entirely by Cr0w+T.+Trollbot · · Score: 5, Insightful
    Let Google completely remove the listing for Louis Vuitton or any other company that sued them from their search engine. Or, for that matter, all the websites of the French government, or even every .fr domain. After all, it's a private company, not a public utility. Despite that, they've become so ubiqitous that I suspect both France and the company's suing them would change their tune rather quickly...

    Crow T. Trollbot

  10. well.. by SolusSD · · Score: 2, Insightful

    it would put an end to those annoying Windows is better than Linux ads that come up everytime I use google to search for Linux help. wait a minute.. isn't this like making it illegal to have any competing product next to what your looking for? stores arranged by brand anyone?

  11. Re:what the ... by TigerNut · · Score: 2, Insightful

    Not necessarily. If I'm searching for Brand X automotive parts, I do NOT want hits for brand Y. I do want hits for dealers of Brand X, and reviews of Brand X equipment, and I expect to get them, not shills for others' imitations. If it then turns out that the dealers also carry other brands, I can find them through the dealers' websites.

    --

    Less is more.

  12. everything competes with everything else by timothy · · Score: 2, Insightful

    ideas, products, places to visit ...

    Not that everyone has the same opportunities, due to lumpiness in the space time continuum, conspiracies run by the Illuminati, the oppression of the proletariat by evil oppressors etc, but for those opportunies each person [outside a survival-only situation] *does* have, there are -- for practical purposes -- an infinite number of possibilities, different ways for them to expend their life energy.

    Buy an iPod? Hey, that sounds good! One day I might.

    Join a monastery? Hmm. Less appealing, to me, but you might think differently, spend your iPod money on the planefare to your new contemplative existence.

    Write and send a postcard? Nah, I'd rather spend the same amount of time sipping some tea over a Dashiell Hammet book today, thanks.

    And that's just about things that aren't even immediately related! The point is that we have finite, inexactly known stretches of time on earth and an incalculably wide set of preferences. Things that are closer to each other in form -- one clothing brand versus another, say -- may be more obviously in competition for mindspace (and money), but what about snowboard pants versus special tango-dancin' pants? Are those competitors? To ask that the government of France (or anywhere else) to determine exactly what is in competition with what else (and to what degree) would require magical powers that I more than suspect are far out of its reach.

    For a country to pretend that the "market" (or any market) is simple enough to be intelligently or justifiably handicapped with such hamhanded, thought-constricting, interventionist rules comes close to parody. (In the Soviet Union, where the state was supposed to make intelligent choices on behalf of the downtrodden man who would otherwise be exploited by capitalism, it might have been a natural fit, though.)

    timothy

    --
    jrnl: http://tinyurl.com/c2l8yr / foes: http://tinyurl.com/ckjno5
  13. sucks by t_pet422 · · Score: 2, Insightful

    Man, that sucks. Sometimes I search on Google for a brand name specifically so that I can learn about possible competitors from the ads. I think these ads helps me be a better consumer. I hope they don't go away.

  14. Re:Has there ever been a good french court ruling? by jIyajbe · · Score: 2, Insightful

    I suppose the French government has decided that it doesn't want France to become like the U.S.; considering the shape the U.S. is in (and its people, myself included), it's hard to blame them.

    Part of the U.S.'s problem is they don't really understand that the rest of the world doesn't want to be like the U.S.

    --
    "Don't blame the log for the fire." --Andrew Ratshin
  15. Re:French suck! by Lehk228 · · Score: 1, Insightful

    no need for that, just pull all physical presence out of France

    --
    Snowden and Manning are heroes.
  16. Re:Google bans ads that criticize cruise ships by Anonymous Coward · · Score: 1, Insightful

    I'm pretty sure they wouldn't host a Ford ad that says "Chevy Sucks" either. Just cos it's an enviro group doing the attacking doesn't make any difference there.

  17. Re:Why is this different from...(realities of sear by rudy_wayne · · Score: 2, Insightful

    You're missing the point.

    Let's suppose that you are Louis Vuitton. You've spent a lot of years and a lot of money building up your brand name. So now, someone is *PAYING* the sales person in that store to show customers products by Dior everytime they ask to see your products. If you were Louis Vuitton you would not be happy about that.

    And to claim that people searching for 'Louis Vuitton' are merely doing a generic search for 'luxury good' is just plain stupid. If I search for 'Louis Vuitton' then I only want to see search results for Louis Vuitton. To display anything else is unethical.

  18. Re:what the ... by Tiroth · · Score: 2, Insightful

    But this is a pretty myopic view. How are AdWords any different than a TV commercial that says "Our brand X has a TCO lower than brand Y?" In other words, it is just a way for a smaller (or larger!) brand to fight for market share. What we're really talking about here is restricting freedom of speech to protect companies' profits.

    I'm not big on clicking on ads, but occasionally I have been enticed to click on a relevant AdWord ad, and actually found a company that fit my needs better.

    Companies with strong brands often charge the consumer a "brand premium" that has more to do with name recognition than quality. Corollary: there is probably a cheaper company out there with an equally good product.

    I think this is more about bludgeoning competitors with your brand name than protecting consumers; after all, if the competitor is just selling knock-offs there are already legal remedies. We don't need to restrict speech to prevent this.

  19. Re:This is idiotic by dabraun · · Score: 5, Insightful

    Except that as a consumer / web searcher when I search for "Louis Vuitton" (not that I have ever even heard of that brand) I *want* to see everything about it and everything like it.

    Seeing ads that are for direct and relevant competitors when searching for a trademarked term makes web searches more useful. Ok, perhaps the trademark holder should always get the first result - but preventing me from seeing competitor's adds ... is just lame.

    Next thing you know they are going to prevent sites that are critical of a brand from buying search terms - i.e. say some site has important dirt on Nike regarding child labor allegations - is it going to be illegal for that site to buy an adword to show up when someone searches for Nike?

    Lame.

  20. Re:Slashdot editors ordered to stop posting dupes by Anonymous Coward · · Score: 2, Insightful

    And you guys rant over bugs in an o/s as complex as Win XP!

    It's not as though Slashdot has dozens of stories posted each day. How hard is it to be an editor for this site anyhow?

  21. deception in the link names. by acomj · · Score: 2, Insightful

    lets say your searching for "rackspace" hosting. you type "rack space" into goole. The first two ads that pop up are titled "rack space" , but they link to someother site selling solutions (the url is listed in small type under the link).

    So basically companies are createing links with names that are incorrect in ads. I think thats where the problem is, if the name of your company is trademarked. I could put a "ford" link that links to chevy.com and that is very deceptive.

    buyer beware.

    I leave it to the courts to figure out if it illegal.

  22. Targeting the wrong entity by mintech · · Score: 5, Insightful

    I think Louis Vuitton should not be suing Google, instead, it should be suing the companies who post the adwords that violate trademarks. For example, if Dior decides to have an advertisement appear when someone searches for "Louis Vuitton" then perhaps Louis Vuitton should sue Dior for infringing on their trademark.

    If Dior put a full-page ad in New York Times encouraging people to buy Dior instead of Louis Vuitton, does that mean that the New York Times is responsible for violating the trademark, or would it be Dior?

  23. Re:Google bans ads that criticize cruise ships by Anonymous Coward · · Score: 1, Insightful

    Who cares what you're comfortable with?

    Use a different search engine.

    Oh, wait - they aren't "censoring" the results, they're "censoring" the ADs that pay their salaries.

    (I use the term "censoring" loosely here...)

  24. Re:Why is this different from...(realities of sear by Jeremi · · Score: 2, Insightful
    If you were Louis Vuitton you would not be happy about that.


    You certainly would be unhappy. But it doesn't follow that the government should outlaw it just to make you happy.


    And to claim that people searching for 'Louis Vuitton' are merely doing a generic search for 'luxury good' is just plain stupid. If I search for 'Louis Vuitton' then I only want to see search results for Louis Vuitton. To display anything else is unethical.


    By your logic, then, all search engine advertisements are unethical. Perhaps you think search engines should be run as taxpayer-funded public utilities, instead of by for-profit private companies?

    --


    I don't care if it's 90,000 hectares. That lake was not my doing.
  25. Why not? by Lord+Kano · · Score: 2, Insightful

    Why not just uproot and remove all administrative functions from France? Do their European business out of England, or Poland, or Germany or any other country. France's legal system is peculiar, to say the least. I'd say that it is a direct competitor to the lunacy that we see here in the US.

    LK

    --
    "Hi. This is my friend, Jack Shit, and you don't know him." - Lord Kano
  26. fudge the french by MoFoQ · · Score: 3, Insightful

    The French courts seems to have the wrong impression that it has absolute jurisdiction over anything and everything on the net. Just like the Yahoo/Ebay/Nazi paraphernalia issue.
    They especially don't have jurisdiction if Google does not have any legal business presence in France and they can't really do much to Google otherwise if Google were to refuse (provided Google has no future plans of opening up offices in France). The French don't censor the internet and since they don't have legal presence in France, it's a bit hard to fine them and expect payment. Plus the US courts are probably not going to help the French courts if Bush has anything to say about it, since I'm sure he holds a grudge against the French.

    Man...all this reminds me of that one Halloween ep of the Simpsons. "AHAHAHAHA! No no no, in francias...OHOHOHOHOHOH"

  27. Re:Why is this different from...(realities of sear by Experiment+626 · · Score: 2, Insightful

    Let's suppose that you are Louis Vuitton. You've spent a lot of years and a lot of money building up your brand name. So now, someone is *PAYING* the sales person in that store to show customers products by Dior everytime they ask to see your products. If you were Louis Vuitton you would not be happy about that.

    I walk into a restraunt and order a Coke. The waitress offers me a Pepsi. Coke has "spent a lot of years and a lot of money building up its brand name", and "someone is *PAYING*" the waitress to offer customers Pepsi products when they try to order a Coke. Should this be illegal too?

  28. Re:I don't agree. by Minna+Kirai · · Score: 4, Insightful

    So, if I create a fast food restaurant called McDonalds, serving Big Macs and use all the same colors etc, you're okay with that?

    As has already been explained, that would be performing trade under another company's mark, which is exactly (and only) what trademark should prevent.

    But you want it to be illegal for me to tell my friend about a Burger King or Subway around the corner if he asks me where the nearest McDonalds is.