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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.

15 of 274 comments (clear)

  1. I wonder if this is going to broaden... by Undefined+Tag · · Score: 4, Interesting

    I wonder if this is going to open the door for companies to take action against domain names that are similar to their trademarked name.

    If it's unacceptable for Google to sell "Geico", will it also be unacceptable for someone to have www.G31c0.com and no, I don't know if that's a valid URL or not.

  2. Bah... by rwven · · Score: 1, Interesting

    This pretty much proves the pathetic state of our legal system... The fact that essentially the same case can be tried twice within a very close timeframe and two different results can be achieved. I can understand that something 50 years ago may get a different result than now based on changes in society... But we're talking here about two of the same cases sitting in the same medium in a very close proximity in time. I think it's time for some judicial reform... Maybe that's just me...

  3. Explain this to me by rolfwind · · Score: 4, Interesting

    Google is one of many search service. You use it voluntarily. Why shouldn't they have the right to display what they want depending on the word you type in. They are not using the geico name illegally as I know, simply display competitor's sites when that search is iniated.

    A similiar thing happens when I go to fast food (KFC, Tacobell, Pepsi owned?) restaurants and ask for a Sprite - "No, sorry sir, we only carry Slice. Would you like that?" They don't simply say no and leave it at that.

    They could as easily drop geico's webpage completely - that should be within google's rights. No one promised Geico that they be displayed at all after all in this privately owned website.

    1. Re:Explain this to me by generic-man · · Score: 2, Interesting

      Google's job is to navigate and not deceive. If you told a cab driver "Take me to the Holiday Inn" and he took you to some shady motel that paid off the taxi driver, you'd be pissed off.

      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.

      Related story in which colleges' names were being used to sell disreputable degrees.

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  4. Using competitors names by ChrisF79 · · Score: 4, Interesting

    I just recently saw a commercial for some insurance company and noticed that they didn't use Geico's name. Instead, the guy says, "She had the gecko." I guess that insurance company made the right move if Geico is litigation happy, trying to protect their name.

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    1. Re:Using competitors names by Anonymous Coward · · Score: 1, Interesting

      Wierd but true: some detergent ads don't name the leading brant because the leading brand is made by the same company (P&G makes both Tide and ABC).

      Wierder but still true: Tide detergent ads have, on occasion, compared Tide to the leading brand, but the leading brand is... Tide.

  5. Simple Solution by Cytlid · · Score: 3, Interesting

    Let's see... Geico had a fit because one of their competitors "bought" the word Geico as an adword so their ad would show up when they search Geico on Google? Is this correct?

    Easy way to fix that, take all references of "Geico" out of Google.

    On one hand, I can understand where Geico is coming from, but on the other hand, advertisers use their competitors names' in their ads all the time. Can State Farm sue because Geico says I can save 15% off their price? Where does this end? Are websites that compare prices illegal?

    I can see if you're avoiding mentioning someone else's trademark in your ad. But this boarders on dictating what you can and cannot search for.

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    FLR
  6. I'm surprised they resorted to litigation by white1827 · · Score: 4, Interesting

    I use Adwords to advertise for my company. I'm kind of surprised Geico had to resort to litigation. We have the same issue all the time. Google quickly and efficiently removes the ads that use our trademark when we follow their trademark complaint procedure.

  7. Re:The right decision IMO by Anonymous Coward · · Score: 1, Interesting

    The right decision IMO... this is using another company's name to advertise your products. wrong.

    So why didn't Geico sue the company that used their name, rather than Google?

    If I ran an Ad for SpiffyCola on the radio, using Coke's name as a comparison, would you sue the FCC for licensing the frequency to the radio station that aired it?

  8. What this means for Adwords users by myared · · Score: 2, Interesting
    Adwords Marketing News posted about this a couple days ago. They analyzed what this really means for people who typically advertise on other trademark terms. So much is uncertain with the court systems, anything can happen.
    "Google's AdWords underwent a policy change in April 2004. Until then Google had respected requests from companies that asked it to prevent their marks from being available for sponsorship. Now Google only takes action when a trade marked term is used in the text of an ad - i.e. the trade marked term can still trigger the ad. ... According to GEICO, the court has stayed the trial for 30 days to give the parties an opportunity to settle. If the parties do not settle, the trial will continue on the question of damages and on the issue of who is liable: Google or Google's advertisers."
    You can bet more lawsuits are coming soon. Full article: http://marketingnewsblog.adwordstraining.org/adwor ds-lawsuit
  9. GEICO should not be going after Google by flajann · · Score: 2, Interesting
    GEICO should go after the individal insurance companies using their trademarks, not Google, which is simply a conduit for commerce.

    There is a potential for a chilling effect on online ads. Perhaps GEICO has stiffed a few of its clients, for instance, and I might want to do a web site on that. Would I be prohibited from using text like "GEICO Stiffed Clients" in the text of the ad?

    Good bye free speech...

  10. Re:GEICO by FictionPimp · · Score: 4, Interesting

    I switched to AIG, they were cheaper for my 2 cars, and when my wife had a fender bender, they had the damage inspected by a shop of our choice (we picked the dealer) then sent out someone to evalutate the dealers quote. Then they let the dealer fix it. When the dealer found more damage after starting the repair, again they sent out a guy to evaluate, and paid for the extra repairs too. Best experiance I have ever had with an insurance company. From accident to getting the car back in our hands - 1 week.

  11. The Ruling Relates to Context, NOT Content by Stitch_Surfs · · Score: 2, Interesting

    Actually, people are misunderstanding and mischaracterizing this ruling, which, in my opinion is flawed on a number of levels. First, the ruling has NOTHING to do with making a direct comparison in your AdWords Ad. It has to do with using the word GEICO as one of the words you pay for such that when someone types GEICO into the search bar, Your non-Geico AdWords Ad is displayed. Your ad in fact probably wouldn't say Geico at all.

    Thus, the ruling relates not to the content of the advertising but the CONTEXT. This is a vital distinction. I faced a similar situation last year with AdWords. I was marketing a product called RU-21 for Hangovers. The most popular product in the category is called Chaser, and I was bidding on that word to have my ad displayed when someone searched Chaser. About a month after starting the campaign, I received a VERY UNPLEASANT and threatening letter from Chaser's corporate council...

    What makes this a really important issue is that a large percentage of the really successful AdWords campaigns are predicated upon buying keywords that are the names of your competitor's products.

    Google is undoubtedly going to appeal, but should they lose this will change the name of the game quite considerably both for the advertisers AND for Google

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  12. Re:As a Google fan by MCraigW · · Score: 2, Interesting
    That's why the Pepsi taste test ads for example refer to 'another well known brand of cola' rather than coke (OTOH I think in their case that do that because the 'other' cola is just a cheap supermarket brand).

    The Pepsi side-by-side taste test ads that I've seen (in the US) refer to Coke.

    There are also other Pepsi ads that refer to Coke, like the one where they keep changing the Coke vending machine sitting beside the Pepsi machine, and everyone keeps buying from the Pepsi machine.

    (Off Topic bit) The power of advertising: In blind side-by-side taste tests, Pepsi always overwhelmingly beats Coke -- but everyone keeps buying Coke anyway.

  13. Re:As a Google fan by SeaFox · · Score: 2, Interesting

    They're all vague references to other companies that most people have an idea about, but are not mentioned. I've never seen a car commercial that says "Buy [our brand], because it's just better than a Ford,"

    I do. But then, they don't use dumb resoning like their car is "just better" than a Ford. They say things like "higher resale value than Ford or Chevy", "more interior room than Accord", "higher owner brand loyalty than Toyota". And considering how polls and studies are conducted nowadays they all can make the cliam and have a "report" to back it up.

    It seems like these laws are already in place, probably to protect companies from competitors that could engage in either negative advertising or use their established brand to piggy-back.

    Slightly off topic, but I wish eBay had a policy like this. If there's one thing that bothers me it's when I search for a certain product by brand and model number and get a bunch of resluts for other products where the seller put "not XXXX" or "better than XXXX" in the item title/description.