Keywords Have become Gamble for Marketers May 9, 2005
Felix Hofer and Douglas J. Wood's article "Keywords Have Become Gamble for Marketers" explains the controversy over the used of keywords. Google has recently been accused of trademark infringement and dilution and unfair competition. Trademark infringement is when a company uses a competitor's trademark in a way that may be confusing to consumers. An example of trademark infringement is when a company used a phrase or similar phrase owned by a competitor when selling their product. When a company uses a competitor's famous trademark in a way that dilutes its goodwill in the marketplace, trademark dilution has occurred. If a company were to divert a competitor's customers to do business with them through misleading practices, the company engaged in unfair competition.
Google used to police the sale of keywords but in 2004, Google abandoned its clearance process of selling keywords. This may be because more than 95% of Google's revenue is from the selling of keywords. This free market of keywords has created trouble for Google. American Blind has brought allegations of trademark infringement and unfair competition against Google and other search-engine marketers. American Blind says the sale of its trademarks as keywords is directing web browsers to sites of its competitors. The case against American Blinds on March 30, Google stated that "Google believes and maintains that descriptive terms (including terms such as 'blind,' 'wallpaper' and 'factory,' which are component parts of American Blind's trademark) are not entitled to any such treatment, and that Google's sale of keyword-triggered advertising does not violate the Lanham Act." The L ...