Google wins Louis Vuitton trademark battle

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Search giant allowed to let advertisers bid on keywords that relate to other businesses

Google has won what could be a landmark legal case against luxury goods maker Louis Vuitton over its keyword advertising business.

The search firm announced in a blog post that, following a decision by the European Court of Justice, Google will still be allowed to let advertisers bid on keywords that relate to other businesses.

"Trademarks are part of our daily life and culture, helping us to identify the products and services that we may be looking for. They are key for companies to market and advertise their products and services. But trademark rights are not absolute," said Dr Harjinder S. Obhi, senior litigation counsel for Google.

Obhi added that it is fairer for consumers when Google provides search results, and their associated adverts, for a range of companies, regardless of whether they relate to one company in particular.

"We believe that user interest is best served by maximising the choice of keywords, ensuring relevant and informative advertising for a wide variety of different contexts," he said.

"For instance, if a user is searching for information about a particular car, he or she will want more than just that car's web site. They might be looking for different dealers that sell that car, second hand cars, reviews about the car or information about other cars in the same category."

The court ruled that Google will be allowed to let companies bid for keywords that relate to their competitors' trademarks. Louis Vuitton had claimed that this was being perverted by the makers of counterfeit goods.

"Contrary to what some are intimating, this case is not about us arguing for a right to advertise counterfeit goods," said Obhi.

"We have strict policies that forbid the advertising of counterfeit goods; it's a bad user experience. We work collaboratively with brand owners to better identify and deal with counterfeiters.

"Our guiding principle has always been that advertising should benefit users, and our aim is to ensure that ads are relevant and useful. We will study the decision as we move forward in order to make sure that we continue to deliver advertising that is perceived as both valuable and relevant by our users."

The decision was welcomed by Louis Vuitton parent company LVMH.

"This decision represents a critical step towards the clarification of the rules governing online advertising, of which LVMH is one of the foremost clients," said LVMH senior executive vice president Pierre Godé.

"As the world's leading luxury group, with more brands actively engaged with the internet than any other luxury company, we are committed to working with all parties, including Google, to eradicate illicit online practices and to promote a framework that fosters the continued growth of the digital economy."

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