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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.

22 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 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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  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 Dachannien · · Score: 4, Funny

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

  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.

  7. 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.

    --
    Finance tutorials and more! Understandfinance
    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.

  8. 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 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.

  9. 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.
  10. 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.

  11. 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.

  12. 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.

  13. 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.

  14. 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.