Google wins AdWords trademark case

In a landmark ruling this week, the court ruled that this practice does not represent a trademark violation.

The court also went on to say that Google's AdWords program is protected by a European law governing Internet hosting services.

"This is important because it is a fundamental principle behind the free flow of information over the Internet," Harjinder S. Obhi, Google senior litigation counsel for Europe, the Middle East, and Africa, wrote in a blog post.

When AdWords first started, Google would remove keywords from the bidding process if a trademark holder complained, but Google reversed that policy in the U.S. and Canada in 2004.

Google's main defense was claiming that companies that want to extend trademark law to keywords are really interested in 'controlling and restricting the amount of information that users may see in response to their searches.'

"We believe that user interest is best served by maximizing the choice of keywords, ensuring relevant and informative advertising for a wide variety of different contexts," Obhi wrote. "For instance, if a user is searching for information about a particular car, he or she will want more than just that car's website. They might be looking for different dealers that sell that car, second hand cars, reviews about the car or looking for information about other cars in the same category."

Google denied that its policy grants it the right to sell fake goods.

"We have strict policies that forbid the advertising of counterfeit goods; it's a bad user experience," Obhi said. "We work collaboratively with brand owners to better identify and deal with counterfeiters."

Google says that companies that want to extend trademark law to keywords are really interested in "controlling and restricting the amount of information that users may see in response to their searches."

The decision is the first in a series of concerning how trademark rights can be used to restrict information available to users.

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