Google Will Allow Trademarks In Text Ads

Sometimes Google has some very interesting timing. Just as Texas litigants are filing for class action status over trademark keyword bidding, the search giant swings the door wide open and announces US advertisers will now be able to use trademark keywords in ad text.

For years Google was the only major search engine advertisers could bid on trademarked keywords to trigger their ads. Until today, though, advertisers were not allowed to actually use those trademarks in the ad text.

Google has set down some clear rules for trademark usage (except the first one--it's kind of murky), as legal precautions:

• Ads which use the term in a descriptive or generic way, and not in reference to the trademark owner or the goods or services corresponding to the trademark term.
• Ads which use the trademark in a nominative manner to refer to the trademark or its owner, specifically:
• Resale of the trademarked goods or services: The advertiser's site must sell (or clearly facilitate the sale of) the goods or services corresponding to a trademark term. The landing page of the ad must clearly demonstrate that a user is able to purchase the goods or services corresponding to a trademark from the advertiser.
• Sale of components, replacement parts or compatible products corresponding to a trademark: The advertiser’s site must sell (or clearly facilitate the sale of) the components, replacement parts or compatible products relating to the goods or services of the trademark. The advertiser’s landing page must clearly demonstrate that a user is able to purchase the components, parts or compatible products corresponding to the trademark term from the advertiser.
• Informational sites: The primary purpose of the advertiser’s site must be to provide non-competitive and informative details about the goods or services corresponding to the trademark term. Additionally, the advertiser may not sell or facilitate the sale of the goods or services of a competitor of the trademark owner.

The changes take effect today, but approved ads will not appear until June 15. Though the legal debate over whether search ads constitute a “use in commerce” of a trademark is far from settled, Google appears confident the company will win that argument.