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Google Keyword Policy May Be Restricted by EU Ruling

BusinessWeek - Mar 23, 2010

Google Inc.’s practice of storing trademarked terms as “keywords” that link Internet searches to ads may face limits after the European Union’s top court said search engines may be held liable as online hosts if they are aware of storing infringing terms and fail to act.

The European Court of Justice in Luxembourg said today in a case involving LVMH Moet Hennessy Louis Vuitton SA that national courts must determine if Google knew of problems with the data it stores. While the ruling said Google doesn’t violate trademarks, it retreats from a non-binding opinion by a court adviser last year that said Google could sell keywords without restrictions.

“Google is totally dependent upon advertising and anything that might undermine their existing model is bad,” said Alex De Groote, a media analyst at Panmure Gordon & Co, adding the ruling sets an important precedent. “LVMH is a branded luxury goods company, so its own trademark, its own brand, is absolutely sacrosanct for them.”

Read Full Article from BusinessWeek

- Posted: 2010-03-23 10:06:49


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