Slashdot Mirror
Google Loses AdWords Case
TheChillPill writes "Google has lost a case brought by a company whose name was being used by Adwords users. Insurance firm GEICO, who had not been using Adwords themselves, objected to Google allowing it's advertisers to use the term in their campaigns." This is a reversal for Google based on an earlier story.
This is a reversal for Google based on an earlier story.
Don't be too sad. This isn't really a reversal of the earlier decision. It's actually two seperate but related issues. The first decision, which Google won, concerned using a trademarked term to trigger an ad. The second concerned using a trademarked term inside a competitor's ad. So if I pay Google to put up an ad which reads "B'Trey's Auto Insurance - best in the business!" whenever someone searches for Geico, I'm OK. But if I pay Google to put up an ad which reads "B'Trey's Auto Insurance - better than Geico!" then I run afoul of this ruling.
I'm not real happy with this ruling - unless the ad is fraudulent (ie makes untrue claims about the trademarked term), then I don't see where Geico (or any other trademark holder) has a legal right to protest. But it's nor a reversal of the earlier decision.
"The legitimate powers of government extend only to such acts as are injurious to others." Thomas Jefferson.
I used GEICO when I was overseas because they provided insurance to soldiers, from 1991 to 2003 I used GEICO, then I had an accident and filed a claim.
Their adjuster did not really even look at the vehicle and they only repaired the visible damage without even looking underneath the vehicle, when I griped to a person making a followup call, they fixed some of the issues and left the rest unrepaired. Then they would not renew my policy.
I am not the only person they have done this to, they are hands down the worst insurance agency I have ever dealt with, and I am sure that my daring to complain is what lost my coverage. Now I have better coverage at lower rates with another firm.
I hope this is reversed, because geeks do not let geeks use GEICO.
It's not the same case. One concerned using a trademarked term to trigger an ad. This one concerned using a trademarked term inside a triggered ad.
"The legitimate powers of government extend only to such acts as are injurious to others." Thomas Jefferson.
Google makes money off of ads which are supposed to be "related" to your search query. Misusing someone's trademark to link to other companies is not legal.
Wrong on two accounts. First, it's not a misuse. Other insurance companies are certainly related to a search on "Geico." Second, it is not illegal to display ads based on a trademarked term. It's only illegal to display an ad which uses the trademarked term inside the ad.
"The legitimate powers of government extend only to such acts as are injurious to others." Thomas Jefferson.
That's why the "Pepsi Challenge" is between Pepsi and "some other drinks", or detergent is between whatever and "The market leading brand", etc.
But if I pay Google to put up an ad which reads "B'Trey's Auto Insurance - better than Geico!" then I run afoul of this ruling.
Do you violate the ruling or does Google for accepting your business?
Is it now illegal to mention a competitor in an ad for your own service or product?
=Smidge=
No, it's not a reversal. The court decided on one situation that had been left open by the earlier ruling.
Apparently, displaying competitors' ads in response to a query for a trademark is permissible; the court ruled, however, that the competitors' ads may not contain the trademarked query terms.
It seems to me that that strikes a pretty good balance. Allowing the trademarked query terms to appear in the ads carries too much risk for confusion, and it has little benefit for consumers.
So,is OK in response to a query for GEICO, butis not.
However, even under the current ruling, the target of the ad link can still do price comparisons between Acme and GEICO. Consumers really don't lose anything through this ruling; the court just came up with a simple rule by which targeted ads can be made a little clearer and less confusing.
Actually, it's more a matter of being able to back up what you say, or relying on a competitor's own published info. For example, a Subway ad might mention that one of their Super Tasty Toasted Meat Thingy Sandwiches has less saturated fat than McDonald's Big Mac. They're able to say this comfortably because McDonald's actually publishes the information. That's a lot different than saying "our sandwich is better than McDonalds' burger" because that is a very subjective comparison. When companies do want to make claims like that, the language always comes out, "in recent clinical taste tests..." with screen footers referring to the source of the info. Point is, the more narrow the comparitive/competitive claim, the more likely it is to get into an ad... but it also tends to sound drier and have less overall appeal.
Where that sort of naming-names comparison really works is in highly specialized markets where the consumers are keenly aware of the available products and actually want to compare specs. The nearest thing to this for the general consumer audience is probably the automotive market, where the manufacturers routinely compare horsepower, mileage, etc. with specific other cars.
There's nothing protecting a company from a competitor's "negative" ad, just laws protecting them from liable (actual false information that impacts their reputation). That's why you don't usually see an ad from Ford saying that "don't buy a Chevy, they're more popular with mean people" etc. Just because an ad points out something inferior about the competition (truly, a "negative" ad) doesn't make it illegal. But regardless of the legality, most advertisers (with the notable exception of political campaigns) stay away from overtly bashing the competition, since they know that it's a sign of weakness. If you can't sell on specific merits, you compose ads that just convey a nice feeling and hope that works. If you have to resort to trashing the competition (however much they may deserve it) you're going to alienate some customers just because of your tone. As long as advertisers don't overtly deceive, they're pretty much able to say anything, which is as it should be.
Don't disappoint your bird dog. Go to the range.