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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.

37 of 274 comments (clear)

  1. As a Google fan by BlackCobra43 · · Score: 5, Funny

    This really saddens me. But it's okay because I just saved a bunch of money on car insurance

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    1. Re:As a Google fan by B'Trey · · Score: 4, Informative

      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.

    2. Re:As a Google fan by Smidge204 · · Score: 4, Informative

      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=

    3. Re:As a Google fan by EggyToast · · Score: 3, Insightful
      Isn't this already true for advertising? I don't watch much TV, but the times that I do I always see ads for "Eat our chips, they're not greasy like those other guys," "Our laundry detergent works better than the leading brand!" and "why shop at those other guys?"

      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," or a fast food commercial that says "why eat McDonalds when there's Wendys?"

      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.

      To answer your initial question, though, I'd imagine that Google will now reject ads that fall under this criteria. If they accept them and continue to list them, that's Google's problem -- they're the ones who lost the lawsuit, not individual advertisers.

    4. Re:As a Google fan by Stone+Cold+Troll · · Score: 3, Informative

      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 doubt that the scope of this ruling includes such marketing hyperbole. Not long ago, if you Googled on "GEICO", you'd see a couple of sponsored ads that read simply "GEICO Auto Insurance" but linked to non-affiliated companies or agencies. This was clearly misleading, and I would hope that this is the sort of thing addressed by the ruling at hand.

      This is not to say that GEICO isn't trying to get a ruling against any use of their trademark (they are), but the courts generally only prohibit misleading uses of a trademark ("Buy GEICO Insurance") while allowing non-misleading use of a trademark for comparative purposes ("We're better than GEICO!").

    5. Re:As a Google fan by ScentCone · · Score: 4, Informative

      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.

      --
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    6. Re:As a Google fan by ImaLamer · · Score: 3, Funny

      What's wrong with you? The ruling is so simple to understand even a caveman gets it.

  2. Lost its case, huh? by RandoX · · Score: 5, Funny

    Should have had a Case Else.

  3. But by kevin_conaway · · Score: 5, Funny

    Its understandable seeing as how Geico was losing 15% of its profits.

  4. Are they sure... by Drooling+Iguana · · Score: 4, Funny

    Are they sure that people weren't actually using the word "gecko"? I've heard a lot of people get the two confused.

    --
    ... I'm addicted to placebos
  5. 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.

    1. Re:I wonder if this is going to broaden... by stinerman · · Score: 3, Informative

      Its certainly a valid URL. Each domain name must start with a letter or number, and then may be made up of letters, numbers, and hyphens, to a maximum of 63 characters.

      (Thanks to Wikipedia)

    2. Re:I wonder if this is going to broaden... by Dachannien · · Score: 4, Funny

      I guess now I don't need to register iwonderhowlongadomainnamecanbe.com.

    3. Re:I wonder if this is going to broaden... by Tony+Hoyle · · Score: 3, Funny

      Hmm.. I wonder if I could register 127.0.0.1 as a domain name :)

      (OK I'd have to register '1.com' or something.. interesting idea though).

  6. 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 B'Trey · · Score: 5, Informative

      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.

    2. Re:Explain this to me by gowen · · Score: 3, Insightful
      Why shouldn't they have the right to display what they want depending on the word you type in
      Because you're not allowed to leverage other people's trademarks to sell your service. That's the point of trademarks. You might as well ask "Why can't I put innocuous words like `Armani' on the shirts I make".

      Sheesh.
      --
      Athletic Scholarships to universities make as much sense as academic scholarships to sports teams.
  7. So Geico... by rahlquist · · Score: 3, Informative

    There is no such thing as bad publicity. Geico just got their advertising courtesy of Google and didn't even have to pay Google for it. Slick move.

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  8. 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 arkanes · · Score: 4, Informative
      For exactly this reason, companies very rarely directly compare themselves to a competitor - even though it's within the ream of fair use of a trademark, nobody wants to litigate over a commercial. There's the secondary reason that they don't want to spend thier own money popularizing someone elses name brand, of course.

      That's why the "Pepsi Challenge" is between Pepsi and "some other drinks", or detergent is between whatever and "The market leading brand", etc.

  9. GEICO by Kylere · · Score: 5, Informative

    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.

    1. Re:GEICO by B'Trey · · Score: 4, Informative

      This is one of the key factors in insurance. How can company A afford to be cheaper than everyone else? Usually, by paying out fewer claims. One way to pay out fewer claims is to only insure people who are less likely to file a claim. The other way is to deny more claims. Do a bit of research. Look at the companies that claim they're cheaper than everyone else and see what percentage of claims filed they actually pay. What do you want insurance for? To meet the legal requirements? Or to protect yourself against loss? If the latter, do you really want to do business with a company that's going to fight tooth and nail against paying your claim when you need them?

      PS And I'm not just talking about Geico here. Do your own research on Geico and find out if they fit the profile I described, but do the same to the other insurance companies that brag about how cheap they are.

      --

      "The legitimate powers of government extend only to such acts as are injurious to others." Thomas Jefferson.

    2. Re:GEICO by jtorkbob · · Score: 3, Informative

      When my wife was just 18 she had an accident, not her fault, that resulted in her truck being totaled. The claim was to be paid by Geico, and it was like pulling teeth. It literally took six months AFTER the adjuster came to get them to send us a check. Their check-writing-adjuster thought that she was young and naive and used every trick in the book to try and put her off - sent the check to the wrong address, forgot to sign it, wrong amount, etc.

      In the end I called and asked for his physical address. He gave it to me and asked why I needed it. I told him that my lawyer had asked me to get it. The next day, the check arrived via FedEx.

      Now I'm sure all insurance companies do this, but I can't imagine that it can be to such a degree. I have heartily encouraged others to consider their alternatives since then. And who can stand those damn ads?

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    3. Re:GEICO by instantgames · · Score: 3, Informative

      More on GEICO at this site's "Hall of Shame" http://www.badfaithinsurance.org/indexdetaillist.h tml

    4. 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.

  10. Irony? by IorDMUX · · Score: 4, Funny

    And... and there was a Google AdSense advertisment showing on this very comment page.

    Why, oh /., why?

    --
    >> Standing on head makes smile of frown, but rest of face also upside down.
  11. Re:Bah... by B'Trey · · Score: 4, Informative

    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.

  12. 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.

    --
    FLR
  13. Re:Bah... by tgd · · Score: 4, Funny

    This pretty much proves the pathetic state of Slashdot. The fact that essentially everyone can not RTFA and apply basic reading comprehension to understand the two are not the same. I can understand that slashdot 5 years ago may have gotten a different result now based on changes in society... But we're talking here about basic reading skills with two stories in a very close proximity in time. I think its time for some educational reform.

    And yes, its you.

  14. Stupid, arbitrary feel-good restrictions by ShatteredDream · · Score: 3, Insightful

    There is no good reason why someone shouldn't be able to run an ad that says, "we're cheaper than Geico, click here to find out how much you'll save by switching FROM Geico." Society is better off when we take off these arbitrary restrictions that keep cut-throat competition to a minimum by not allowing competitors to easily target each other. If they were trying to pass themselves off as Geico, that's one thing, but trademarks should not be an issue otherwise.

    This is why I hate lawyers. To anyone else, most cases would need last only a few hours. Then you have the lawyers who need to go through elaborate procedures, arguing technicalities, making mountains out of mole hills and all of that happy horse shit. What we need is a jury power called, "dismiss with extreme prejudice." If a company gets a few cases dismissed under those terms, then the court begins to charge a non-refundable fee everytime it has to review a case brought by a company or individual. Every honest victory then counts as a positive mark against those bad marks and when they're 1:1 the fee stops being charged.

    Those big on law theory wring their hands about stuff like people taking it to the streets. Well here's a novel suggestion, if the company abuses the courts like this, gets censured and then takes matters into its own hands... the government should storm its offices with police in full ninja gear, slam the people responsible head first into the wall while hand-cuffing them and charge them with murder in the first degree then give them a firing squad if convicted. If the government backs up the censure at every step of the way, the courts may have a chance to start reverting back to respectable institutions that serve the public rather than the loudest plaintiffs.

    1. Re:Stupid, arbitrary feel-good restrictions by kansas1051 · · Score: 3, Insightful

      Perhaps if you read the judge's opinion or any of the briefs, or anything else for that matter, you wouldn't get so agitated and make ridiculous statements. But that would make you one of "those big on law theory" people you so despise.

      That being said, the problem here isn't that a competitor cant make an ad saying "I'm cheaper than Geico", because they can provided there is no likelihood of confusion. (i.e. Subway TVs ads currently use both McDonald's and BigMac trademarks legally because there is no confusion that the ads are for McDonalds).

      Google's problem is that **they** created a "likelihood of confusion" when sometime types in "GEICO", sees a first link that says "Cheap Insurance", and clicks on it. Users (dumb ones admittedly) might think that the link they are going to goes to GEICO because it is displayed first (because the competitor paid google lots of money) and they clicked on the first/highlighted link.

      Its not much different that if I opened a store with "McDonalds is good" on the front (a statement of opinion protected by the first amendment), and then sold people Wendy's when they came inside (thereby deceiving customers). The reason for trademark law is to protect people from being deceived as to the source of the goods (which you would have to read something to find out, and thus be "big on law theory").

  15. 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.

  16. Actually, I think this ruling is not that bad by FearUncertaintyDoubt · · Score: 3, Insightful

    According to the article, the ruling just says that Google can't use GEICO in the actual text of the ad. Trademark infringment is about confusion -- would having GEICO in the text of the ad lead someone to believe that it was an ad for GEICO? Quite possibly.

  17. Re:Bah... by stevemm81 · · Score: 4, Insightful

    No, you're wrong. A judge initially ruled that just selling ads that appear when someone searches for a trademarked term is fine under the law but was unable to rule without a trial whether it was OK to include the trademark in the ad itself.

    It looks like the trial has taken place, and the court ruled that having the trademark (Geico) in the ad is misleading, and could confuse people into thinking the insurance being sold is affiliated with Geico. So, that's not allowed.

    You can disagree with the outcome, sure, but the judges' actions seem very reasonable: rule quickly in summary judgment on the obvious issues, defer the more complicated ones for a trial.

  18. not a reversal by cahiha · · Score: 4, Informative
    This is a reversal for Google based on an earlier story.

    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,
    Cheap Car Insurance from Acme; click here for more info.
    is OK in response to a query for GEICO, but
    Acme is cheaper than GEICO; click here for more info.
    is 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.
  19. Evens out in the end by wuice · · Score: 3, Funny

    The bad news is we just lost our lawsuit and now have to cough up damages and legal fees. The good news is I just saved a bunch on my car insurance!

  20. at least a vast over simplification by YesIAmAScript · · Score: 3, Informative

    Or perhaps just plain wrong.

    The basis for trademark law is the idea of unfair competition.

    So let's start testing this.

    It is legal to mention your competitor's trademarked name to say you are better than them, if it is true. And by true, that means proveably true. This is because it isn't unfair to state the truth. Not that if you can't prove it, because it is a matter of opinion (taste tests) or because you are playing tricks in your tests (like the paper towel strength tests), then you use "brand X".

    It is legal to use a companies' trademarked name for non-commercial purposes. This is because it isn't competition since it isn't even a commmercial endeavour.

    It is not legal to use a companies' trademarked name to lie about them (especially commercially), that would be unfair. Although it's pretty much unfair to lie about a company anyway even if you did avoid their trademark.

    It is not legal to masquerade as another company. For example, if I make breakfast oat-rings, I cannot just print up a Cheerios box and put them in it so they sell better. That would be using the properties of General Mills against them. Every dollar they spent advertising or building a name would actually work for me too (and thus against them), I'm unfairly leveraging their efforts.

    Now, what about just mentioning them to say you are like them (or perhaps unlike them), as in this case. It is possible to do this legally. For example, if I make an aftermarket HP-compatible ink cartridge I can use their name to indicate what it is. I can say "HP-compatible". Or even "compatible with HP printers" or "replaces HP cartridge #XXYY-035". However, there is an easy way to get in trouble in this case. If I made my box say "HP" covering 90% of the front of the box and my company name in tiny lettering in the corner or on the side, I would be masquerading as an HP product (at least long enough to get your attention), and again that would be unfair. See Negativland's U2 album http://foetusized.org/u2.html for example.

    This can happen for regular advertising too. For example, Miller's ads could say "Bud Bud Bud Bud Bud Bud (Miller)" and basically associate themselves more strongly with Budweiser than their own name. That would be unfair too. It even could happen with a (normally legal) comparison ad, like the "better than" ads above. You could truthfully mention you are better than the other product, but spend so much time (or space) in your ad doing it that you are using their name to associate with yours. Obviously all of this is subject to some interpretation.

    So, to go to the AdWords thing, is it illegal? Well, you are using a competitors term and using it commercially. So the competition part is there. But the question is, is it unfair to pop up when your competitor's trademarked term is entered. In my opinion, it probably is. In this case, your product's "box art" (the item that attracts people to look at your product/ad) is essentially 100% your competitor's trademarks. It's like that Negativland cover. When someone sees it from far away, it looks more like your compeitition than yourself; and by design. Information that says that this isn't really your competitor's product is available in your detailed ad, but isn't nearly as visible, and requires a more detailed examination, like hiding your name down in the corner or on the side of the box. Furthermore, every ad dollar your competitor spends is twisted to work against them by helping you. The more people learn their name and enter it into the search box, the more your name pops up.

    Thus, in my opinion, buying adwords of your competitor's trademarks is probably unfair competition and thus illegal. And if judges think like me (I shudder to think) they have no choice but to rule against Google. I don't feel it should be illegal, so I would like Congress to step in and change the law in this case. Will they do it? Probably depends on who has the most lobbying money.

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