Adwords, Company Names and Trademark Infringement

Trademark Infringement

Are you currently Search Engine Marketing? …Advertising on Adwords? AndMine purchase plenty of digital advertising for our clients, especially on Adwords.  The constantly growing Google platform is under pressure from new cases testing the use of competitors trademarks, trading names, product names or a website addresses (brandwords). Buying competitors brandwords and re-directing them to another website, should this be allowed? This could be the case of Trademark Infringement.

For example, if a user Google searches ‘Harvey World Travel’, an ad would shows up with the title ‘Harvey World Travel’. But clicking on this ad takes the user to a website for STA Travel! AndMine sees a tougher challenge is around businesses which own brandwords that are also common terms, for example “Real Estate” for realestate.com.au.

AndMine have recently advised a number of clients, on both sides of this argument. We strongly focus on the users perspective; If you’ve searched “Harvey World Travel” wouldn’t you want to be taken to that site? For our clients, we advise to purchase keywords that will have a lower bounce rate and higher engagement; Thus buying competitors brandwords will confuse users and render poorer conversion results. As for common terms like “real estate”, this isn’t best practice either, as the cost of acquisition is typically many times more than less competitive keywords. This is also Trademark Infringement.

Different courts across the globe are ruling for and against these practices.

In Australia, Online Ad spending is worth around $830 million per year. The ACCC (Australian Competition and Consumer Commission) was in a to-and-fro battle with Google over competitor brandwords advertising. The ACCC posted their 2011 appeal recently to the High Court and won last month.

However a recent EU case the courts said “Using rivals’ trademarks in Google Adwords is fair competition unless the products are imitations”. Very interesting.

While the line is being decided worldwide, for now, Australian businesses should not use brandwords of a competitor as part of an AdWords campaign as this may constitute a breach of consumer protection laws. In addition campaigns should be designed to maximise engagement, buying competitors brandwords will dilute conversion.

Businesses should monitor the use of their own brandwords in Googles paid search by competitors. AndMine recommends pointing them to this article and asking them to stop the practice of Trademark Infringement before taking further action. Contact AndMine if you would like us to review a particular scenario for your business. You may also contact the ACCC if a “Sponsored Link” on Google infringes your brandwords which maybe misleading to your potential customers.

 

Go on, see if you can challenge us on "Adwords, Company Names and Trademark Infringement" - Part of our 159 services at &Mine. We are quick to respond but if you want to go direct, test us during office hours.

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&Mine team is a melting pot of technology and creative minds. Each year, we slice a few percent of our bandwidth to develop our own commercial projects. For example, we have developed a prototype Posture Detector with the help of Melbourne University's Engineering Department that will send signals to your smartphone and vibrate if your posture is poor. We are also improving our suite of cloud based software applications like Meet&Mine, our Networking Software. During its first year gathering data, it referred over half a million dollars of real business for a small Melbourne network group. If you’d like to know more about our laboratory projects and how you can get involved in capital raising, marketing or support, simply contact us.

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  • AndMine

    Digital Agency in Melbourne.
    Level 14, 333 Collins Street
    Melbourne VIC 3004
    Victoria, Australia
    Tel: +613 8844 5800
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    Digital Agency in Sydney.
    Level 5, 50 Holt Street
    Surry Hills,
    NSW 2010
    New South Wales, Australia
    Tel: 1300-ANDMINE

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