Google vs. Geico Could Impact Your Trademark

Industry watchers continue to keep an eye this week on the court case involving Google AdWords and an accusation from Geico that Google's practices diluted the Geico trademark. While the final outcome of the court case remains the be seen, the decision could have a lasting impact on the ability of small businesses to enforce their trademarks.

CNet has the full story today in an article titled: Google may be liable for trademark infringement.

From the article:

The insurance company had accused Google of violating its trademarks by using the words "Geico" and "Geico Direct" to trigger rival ads in sponsored search results. Geico claimed the practice, which brings in nearly all of Google's revenue, diluted its trademarks and caused consumer confusion.

Basically, the issue boils down to one of responsibility. Is Google responsible for trademark infringement because they allow (even encourage) other companies to purchase ads that are triggered by searches for the phrase "Geico?" Or, is Google simply delivering the ads with the responsibility for trademark infringement laying on the heads of the competing advertisers?

There are pros and cons for the small business market no matter what the courts decide.

If the courts decide that it is Google's responsibility to block ads that might infringe on trademark, it obviously makes it easier for the little guy to hold on to their image in the PPC world. Google will likely become more proactive about removing questionable ads and small businesses can simply point out the obvious trademark breach and allow Google to deal with it, rather than calling up their lawyers and sending out notices to all the offending advertisers.

On the flip side, Google being proactive would likely mean that they are more likely to take a hard-line on anything questionable. That may mean that a small business that sells a name brand product may have a hard time running ads for that product if the manufacturer decides they don't want any competition. This could make it tough for the small businesses to compete in the PPC arena.

If the courts rule that it isn't Google responsibility, then there's the obvious benefit that ads will likely continue running the way that they do now. Unless your ad is deemed litigation worthy by a trademark owner, you'll probably do just fine. If you are a trademark owner yourself, that means that you'll still have to take the more time consuming and expensive route of hiring lawyers to send cease and desist notices and fighting things the old fashioned way.

Either way, the court ruling could ultimately have a pretty big effect on the way that small businesses buy ads and market their products online.