With Geico on the Ropes, Google Takes a Poke at American Blind
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Well, the Geico v. Google trial is finally underway and mostly over in the Eastern District of Virginia—about a block from my office. For the past three days, Judge Brinkema has heard arguments about the legality of Google’s AdWare program which keyes competitors’ advertisements to GEICO’s trademarks. Basically, Geico doesn’t want competitors using its mark to advertise competing goods and services to Internet users. Google, however, feels that, as a publisher, it merely facilitates comparative advertising, which (offline) has long been recognized as legal; the fact that comparative advertising occurs on the Internet by new technological means shouldn’t matter.

Until today, it’s been an uphill struggle for Google in Virginia. Already, the court has denied Google’s motion to dismiss Lanham Act claims, as well as its motion for summary judgment. Google can’t really afford to lose this one because its trademark keying program is a cash cow. In addition, settlement was never much of an option since doing so would subject Google to suits by numerous other mark holders.

Today, however, Google hit paydirt. Judge Brinkema ruled that there was not enough evidence of a trademark violation to bar Google from displaying ads for competitive insurers when Internet users search using the term “GEICO.”

Obviously pleased with the decision, Google warned American Blind (assumed) that “this is a clear signal to other litigants that our keyword policy is lawful.” For over a year, Google has been embroiled in a legal dispute in the Northern District of California with American Blind. Google initiated a declaratory judgment action in response to threats that its trademark keying practices permitted competitors to “confuse customers and capitalize illegally on [American Blind’s] goodwill and reputation by purchasing substantially similar keywords.” On September 17, 2004, the court held a hearing on Google’s motion to dismiss, but it has not yet decided the motion. If the court waits a bit longer, it will have the Eastern District of Virginia’s decision to consider.

Back in Virginia, Judge Brinkema indicated that the case will proceed on the narrow issue of whether Google should be barred from displaying ads for other insurers that contain the term GEICO. But, Google claims to already have a policy in place that excludes such ads.

Additional sources:
Washingtonpost.com article regarding geico v. google trial, at http://www.washingtonpost.com/wp-dyn/articles/A62248-2004Dec13.html?sub=new
Reuters news article, at http://www.reuters.com/newsArticle.jhtml?type=internetNews&storyID=7103733
GEICO v. Google, Inc. (E.D. Va. May 5, 2004) (No. Civil 04-507)
Google, Inc. v. Am. Blind & Wallpaper Factory, Inc. (N.D. Cal. Nov. 26, 2003) (No. Civil 03-5340).

Posted by jason allen cody at December 15, 2004 04:28 PM