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TheDomains.com

Federal Court Once Again Upholds the Right Of A Competitor To Buy Keywords Under A Trademark

March 9, 2011 by Michael Berkens

In another decision regarding trademark terms and keyword advertising, the 9th Circuit Court of Appeals yesterday ruled against Advanced Systems Concepts, a company which sought an injunction to prevent a competitor, Network Automation from buying keywords under its brand name, ActiveBatch.

The ruling reversed a decision by a lower U.S. District Court that had banned Network Automation from buy ads under the ActiveBatch keyword.

The 9th Circuit court found that even if the text accompanying the pay per click link didn’t include the word “advertisement,” its appearance on the search result pages already alerted consumers that they were viewing an ad.

“Google and Bing have partitioned their search results pages so that the advertisements appear in separately labeled sections for “sponsored’ links”

Still no word from anyone why it is perfectly legal to by a keyword ad under someone’s trademark on Google or Bing but doing so with a domain name is its grounds for forfeiture of the domain.

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Filed Under: Legal

About Michael Berkens

Michael Berkens, Esq. is the founder and Editor-in-Chief of TheDomains.com. Michael is also the co-founder of Worldwide Media Inc. which sold around 70K domain to Godaddy.com in December 2015 and now owns around 8K domain names . Michael was also one of the 5 Judges selected for the the Verisign 30th Anniversary .Com contest.

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Comments

  1. Steve says

    March 9, 2011 at 11:50 am

    “Still no word from anyone why it is perfectly legal to by a keyword ad under someone’s trademark on Google or Bing but doing so with a domain name is its grounds for forfeiture of the domain.”
    Exactly. While I certainly don’t condone buying trademarked domain names it seems reasonable that if you can buy ad space relating to those specific keywords you should be able to buy the corresponding keyword domain.
    It will be interesting to see how/if this evolves.

  2. gpmgroup says

    March 9, 2011 at 12:03 pm

    Isn’t because

    1) you need to display a mark to infringe it?
    2) domains are property? Ads are placed on a property?


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