Court reaches Google-LVMH decision
23/03/2010
A court decision on a dispute between luxury leathergoods group LVMH and internet search engine provider Google has resulted in both sides claiming victory.
The court, which sits in Luxembourg, decided that an online advertiser cannot use a registered trademark as a keyword for internet searches without the consent of the trademark owner. LVMH argued that Google should should stop linking adverts to internet searches—a service the online company sells—claiming that many of the companies whose advertisements come up as a result of internet searches trade in counterfeit goods.
LVMH senior executive vice-president, Pierre Godé, commented: “This decision represents a critical step towards the clarification of the rules governing online advertising, of which LVMH is one of the foremost clients. 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.”
However, commentators in newspapers including the Wall Street Journal said Google would also be pleased with the decision because it means the company can continue selling advertisements linked to searches for brand names. If brands such as LVMH take issue, they must do so with each individual advertiser, rather than with Google or other search engines.
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