Google trademark policy change "disappointing", say advertisers
16 Apr 2008
ISBA says the decision by Google to change its paid-search strategy is “disappointing”.
Google currently blocks advertisers from bidding on trademark protected keywords, but from 5 May this ban will be lifted. The move could cost advertisers considerable sums as they struggle to protect their brands online.
Responding to the decision Bob Wootton, ISBA’s Director of Media and Advertising said:“Google is a remarkable channel and a remarkable success.It has achieved a dominant scale and market power here and in many markets.As this has been achieved through organic growth, it cannot easily be challenged through our competition jurisdiction.
“This will inevitably have informed its disappointing decision to change its trademark policy, which it asserts was ratified at the highest level in the US but was introduced without consultation.
“The previous policy made stringent demands of trademark owners, but once these had been met they gave the trademark owner considerable protection.The new policy allows all comers to bid for trademarks as if they were any other search term, inevitably raising prices.
“Google argues that it merely reflects users’ behaviour.The change may be no more than a response to the reported slowdown in click rates and attendant revenues - though it could well have the unintended consequence of opening the way for possible passing-off actions in the courts.”
