Google’s 5 year battle over counterfeit luxury goods has finally ended.
Google had been found liable in France when third parties used Louis Vuitton trade (including Dior and Moet Chandon) marks in online marketing.
However the final judgement means that advertisers may still find themselves open to being sued. This is significant bad news for Google as it may lead to a review of the ground regarding the controversial Google Adwords marketing moneyspinner. With Adwords third parties may bid (i.e. to all intents and purposes offer money to use the words in their advertising) on other parties’ registered trade marks.
Adwords means in practice firms who compete can get themselves to be the first result when the other company’s name is entered into Google.
You might argue that this is comparable to going into a shop and asking for a Coke, instead being handed a Pepsi. Or you might argue it’s like going into a shop wanting a Coke and being confronted instead with a sponsored point of sale display for Pepsi, with Coke in the fridge behind.
Either way, Google only follows this practice in Europe in the UK and Ireland, allowing users to buy Adwords, but not to use those in the text of the advert. In future buyers of trade mark Adwords may have to explicitly state the lack of a connection.
