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Edition: U.S. Article Comments (0) Save Email Print Reprints Most Popular Most Shared Florida says several states to file healthcare lawsuit 22 Mar 2010 Republicans target Democrats on US healthcare reform 22 Mar 2010 Republicans target Democrats on healthcare reform 7:31am EDT FACTBOX-US healthcare bill would provide immediate benefits 19 Mar 2010 Cracks in Great Chinese Firewall, even without Google 5:26am EDT FACTBOX-US healthcare bill would provide immediate benefits 19 Mar 2010 Florida says several states to file healthcare lawsuit 22 Mar 2010 Super-sizing the "Last Supper" 6:33am EDT UPDATE 1-Virginia to sue U.S. over healthcare reform 22 Mar 2010 UPDATE 2-Venezuela punishes 80 firms for power use 21 Mar 2010 Google vs China Remaining Google units exposed to angry Beijing Google's gambit in pulling the plug on its flagship search engine in China leaves its remaining operations there exposed to the whimsy of Beijing, whose initial reaction is far from reassuring. Full Article | Video Cracks in Great Chinese Firewall, even without Google What's next for Google's China workers? Text of Chinese official comments on Google Factbox: Google's footprint in China Timeline: Google's bumpy foray into China European court rules Google's ad model is legal Michele Sinner and Georgina Prodhan LUXEMBOURG/LONDON Tue Mar 23, 2010 10:44am EDT Related News UPDATE 3-European court rules Google's ad model is legal 10:33am EDT European court rules Google's ad model is legal 8:06am EDT RPT-PREVIEW-Google adword win in Europe wouldn't end battles Fri, Mar 19 2010 PREVIEW-Google adword win in Europe wouldn't end battles Thu, Mar 18 2010 LUXEMBOURG/LONDON (Reuters) - Europe's highest court ruled Google Inc did not infringe trademark law by selling keywords to trigger ads after Louis Vuitton and others said the practice undermined their brands. Technology | Media The Court of Justice of the European Union said on Tuesday advertisers were free to buy keywords identical to trademarks of rivals as long as consumers were not confused on the provenance of goods and services by the way ads were displayed online. The court said that in cases where ads could confuse consumers, brand owners should invoke their rights against the advertisers concerned, not against Google -- unless Google failed to act on a complaint or actively manipulated keywords. The ruling validates the AdWords paid-search business at the core of Google's $23 billion online advertising operations, as well as the way competitors like Yahoo! Inc sell ads, and gives brand owners a way to protect their trademarks. "It's a good decision in large parts," said Fabian Ziegenaus, an intellectual property lawyer at Linklaters. "It does not forbid Google per se to sell trademark keywords, so the business model is not at stake, and brand owners are also protected through the decision." Advertisers often buy brand names of their competitors as keywords to trigger their own ads. Google says the practice is in the interests of consumers, who do not want their search results to be limited to a single brand. Brand owners can also bid for their own brand names as keywords and the order in which sponsored links are displayed online is determined mainly through this auction process. Google used to block advertisers from buying others' brand names as keywords but changed its policy in North America in 2004 and four years later extended that to Britain and Ireland. It says it will honor valid complaints from brand owners and prevent their rivals from using a trademarked keyword in their ad text. VICTORY CLAIMS Both Google and LVMH, the world's biggest luxury-goods group, claimed the court's decision as a victory. "Trademarks ... are key for companies to market and advertise their products and services. But trademark rights are not absolute," wrote Google's senior litigation counsel for Europe, Harjinder S. Obhi (googlepolicyeurope.blogspot.com). "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." LVMH Vice Chairman Pierre Gode told Reuters: "We are very happy with the decision. We consider the decision is very important as the liability of advertisers is well established." LVMH shares rose 0.88 percent to 87.57 euros by 1431 GMT. The ruling will, however, make it more complicated for brand owners to pursue legal complaints, as they will have to go after advertisers one by one. "It's a bit of a disappointment for the brand owners because they're going to have to police their brand in a more active way than they'd have to do if it were just Google they had to deal with," said John Mackenzie, partner at law firm Pinsent Masons. The summary of the court judgment did not explicitly address the issue of counterfeit goods, but it did offer more clarity than expected on the misuse of trademarks in search results displayed to consumers. "If the trademarks are actually used in the results that are shown to users and the advertiser does not own the trademark, that is likely to be deemed infringement," said Thomas Vinje, a partner at Clifford Chance specializingin European Union and intellectual property (IP) law. "That would seem to defeat counterfeiters ... that would be to the advantage of the trademark owners," he said. The European Brands Association, which represents 1,800 brand companies in 22 countries, said: "By confirming trademark rights online and holding sellers of keywords liable for illicit material, such as counterfeits, this ruling seems positive." The court said the matter of whether consumers were likely to be confused by the way search results were displayed was a matter for national European courts to decide case by case. The LVMH case, for example, will now go back to France's top court. LVMH scored a victory last month when a Paris tribunal found eBay Inc guilty of misleading consumers by using misspelt versions of its brand as search engine keywords to redirect users to eBay website links. National courts guided by the principles in Tuesday's ruling will also have to decide whether in fact Google, eBay and others are as passive as they appear to be in the administration of their automated services. If they are found to take a more active role, they will not be exempt from liability. "There are potential traps here for Google and eBay and all other Internet providers," said Nicola Dagg, head of IP for law firm Allen & Overy in London. Several cases brought by brand owners are pending against advertisers at the ECJ, the first of which will be ruled on this week. Google also faces eight cases in the United States over the sale of trademarked keywords. (Additional reporting by Foo Yun Chee in Brussels; Editing by Dale Hudson and David Holmes and Sharon Lindores) Technology Media Add a Comment More from Reuters Obama to sign healthcare overhaul into law WASHINGTON (Reuters) - President Barack Obama will sign into law on Tuesday landmark healthcare legislation, a hard-fought victory that will help shape his legacy and the Democrats' chances of holding power in Congress. | Video Home sales dip, credit-related surge eyed Google risks China's ire with slap to censorship | Video Wall Street edges up after home sales data | Video Fed's Plosser: better rules needed to manage risk Germany sets tough terms for EU help for Greece | Video » More Top News Bracing for the healthcare hit Companies still shaking off the sour economy will now deal with what some are calling a "tax bill wrapped up in healthcare paper." Full Article | Video What the bill means for small business HMOs may hike premiums, slash jobs Healthcare overhaul: The good news Healthcare Reform No Facebook? There's still porn People outside China who have read about Internet censorship often imagine online life there is bleak and boring. The reality is very different. Full Article Google risks Beijing's ire Google units exposed to angry Beijing Timeline: Google moves to Hong Kong What's next for China Google workers? Google © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Analyst Research Mobile Newsletters RSS Podcasts Widgets Your View Labs Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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