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Legal Issues in Search
    Europe and America
       David Mirchin
2
Overview


1.   The Issue
2.   US Experience
3.   EU Experience
4.   Practical Tips




3
Keywords?




4
The Issue



    Purchase and Use of Trademark
        Protected KEYWORDS?

      This issue has been considered
              by the Courts in
    America and the EU (and also Israel)
5
LiveU: Portable video
    transmissions
ORGANIC RESULTS and ADVERTISEMENTS

   When you Google “buy liveu” or just “liveu” in the sponsor link on
    the right you will have an ad of TVU




                                                             Ad




                                                          Organic results

7
Who Faces Liability?



 Search Engine Providers ?

    – e.g.:



 Advertisers ?


8
USA


Search Engine Provider

GEICO v Google
Government Employees Insurance Co. v Google, Inc., No. 1:04cv507 (E.D. Va. Aug. 8, 2005)



                 •not liable for trademark infringement for
                 making available registered trademarks as
                 keywords
                 •does not cause likelihood of confusion


9
USA

Wentworth Case
J.G. Wentworth v. Settlement Funding (E.D. Pa. 2007)

 Wentworth and Settlement Funding
are competitors
 Finance Companies
 Settlement Funding Bought “Wentworth” Keyword

 Standard: To win a Trademark Infringement Claim
  in US:

(1) Use of Trademark in Commerce
(2) Creates Likelihood of Confusion
10
Wentworth cont…


HOLDING:
Using trademark-protected words to trigger internet
advertising does not violate trademark law


PRACTICAL RULE:
Use of keyword-triggered ads will not confuse
consumers if the resulting ads do not display the
plaintiff's trademarks

11
Rosetta Stone v.
    Google
EU
EU
EU


Search Engine Provider
Google France v Louis Vuitton Case
European Court of Justice (2010)

Background:

Competitors Buy “Louis Vuitton” Keyword from Google

Can Louis Vuitton Stop Google or their Competitors?


16
 Not liable for trademark infringement.
 Why? Because offering registered
  trademarks as keywords is not “use in
  the course of trade”
 But not a complete win for Google:
  could still be liable for contributory
  infringement under national law
Competitors?


 Their use of Keywords IS a “use in the
  course of trade”.
 Huh?
 Key: Ad Text.
 Liable if:
  – Use Louis Vuitton in the Text of Sponsored Ad, or
  – “Normally informed and reasonably attentive
    internet users” cannot tell from the Ad Text
    whether Louis Vuitton and the competitor are
    economically linked
  – Vague as to the origin of the goods
EU

Interflora v. Marks & Spencer Case
European Court of Justice (September 2011)




20
Marks & Spencer cont…



          EU Court of Justice = guidance

     National Courts determine issues on facts of each case




21
Practical Tips

Summary of US and EU standard:

No liability provided that users are not confused by the text
  of the sponsored ad.

Recommendations:

1. Do not use 3rd party trade marks in the ad text

2. Do not mislead users from ad text

3. Do not imply you are connected to the trademark owner
   (whose keyword you purchased)
22
Remember the
  Standard:
Thank you
    David Mirchin
dmirchin@meitar.com

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David mirchin legal panel

  • 1. Legal Issues in Search Europe and America David Mirchin
  • 2. 2
  • 3. Overview 1. The Issue 2. US Experience 3. EU Experience 4. Practical Tips 3
  • 5. The Issue Purchase and Use of Trademark Protected KEYWORDS? This issue has been considered by the Courts in America and the EU (and also Israel) 5
  • 6. LiveU: Portable video transmissions
  • 7. ORGANIC RESULTS and ADVERTISEMENTS  When you Google “buy liveu” or just “liveu” in the sponsor link on the right you will have an ad of TVU Ad Organic results 7
  • 8. Who Faces Liability?  Search Engine Providers ? – e.g.:  Advertisers ? 8
  • 9. USA Search Engine Provider GEICO v Google Government Employees Insurance Co. v Google, Inc., No. 1:04cv507 (E.D. Va. Aug. 8, 2005) •not liable for trademark infringement for making available registered trademarks as keywords •does not cause likelihood of confusion 9
  • 10. USA Wentworth Case J.G. Wentworth v. Settlement Funding (E.D. Pa. 2007)  Wentworth and Settlement Funding are competitors  Finance Companies  Settlement Funding Bought “Wentworth” Keyword  Standard: To win a Trademark Infringement Claim in US: (1) Use of Trademark in Commerce (2) Creates Likelihood of Confusion 10
  • 11. Wentworth cont… HOLDING: Using trademark-protected words to trigger internet advertising does not violate trademark law PRACTICAL RULE: Use of keyword-triggered ads will not confuse consumers if the resulting ads do not display the plaintiff's trademarks 11
  • 13.
  • 14. EU
  • 15. EU
  • 16. EU Search Engine Provider Google France v Louis Vuitton Case European Court of Justice (2010) Background: Competitors Buy “Louis Vuitton” Keyword from Google Can Louis Vuitton Stop Google or their Competitors? 16
  • 17.
  • 18.  Not liable for trademark infringement.  Why? Because offering registered trademarks as keywords is not “use in the course of trade”  But not a complete win for Google: could still be liable for contributory infringement under national law
  • 19. Competitors?  Their use of Keywords IS a “use in the course of trade”.  Huh?  Key: Ad Text.  Liable if: – Use Louis Vuitton in the Text of Sponsored Ad, or – “Normally informed and reasonably attentive internet users” cannot tell from the Ad Text whether Louis Vuitton and the competitor are economically linked – Vague as to the origin of the goods
  • 20. EU Interflora v. Marks & Spencer Case European Court of Justice (September 2011) 20
  • 21. Marks & Spencer cont… EU Court of Justice = guidance National Courts determine issues on facts of each case 21
  • 22. Practical Tips Summary of US and EU standard: No liability provided that users are not confused by the text of the sponsored ad. Recommendations: 1. Do not use 3rd party trade marks in the ad text 2. Do not mislead users from ad text 3. Do not imply you are connected to the trademark owner (whose keyword you purchased) 22
  • 23. Remember the Standard:
  • 24. Thank you David Mirchin dmirchin@meitar.com