Google Adwords

Pay per click advertising is the keystone to many businesses’ digital marketing strategy. The most common strategy for this is through Google Adwords – the ‘sponsored listing’ results you see in Google searches for those unfamiliar with it.

A recent ruling in the Interflora vs Mark & Spencer case could have an impact on every Google AdWords user in the EU.

Marks and Spencer were bidding on the brand name “Interflora” in their Google AdWords ‘pay per click’ campaign. Interflora objected to the use of their trademark as a keyword and so took action against M&S. The Court of Justice of the European Union ruled in favour of Interflora.

Interflora argued that the very act of bidding on a competitor’s brand is an attack on the trademark which they described as “free-riding”. In their eyes, using competitor’s name to bolster your own reputation, the quid pro quo of which is the implication that you are damaging your competitor’s reputation.

This ruling is being welcomed by brand owners, given that less than a year ago guidelines were put forward in the Google France v Luis Vuitton case suggesting to practitioners that the battle to protect their brands within the world of Google Adwords had been lost altogether.

For most readers this is a note of caution: if you are actively bidding on competitors’ trademarks you may need to review your pay per click advertising techniques lest you land yourself in hot water. Similarly, many are expecting a change of policy from Adwords which may result in you being stopped in any event.