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EU Court Backs Google on Linking Ad Sale to Brands
The European Court of Justice has ruled that Google Inc. can continue selling ads linked to searches for brand names. A luxury-goods group, LVMH Moët Hennessy Louis Vuitton SA, brought a lawsuit complaining that ads sold by Google infringed its trademarks and promoted the sale of counterfeit goods on the Internet. The court held that Google is merely a host for ads and that it is the responsibility of the sponsor of the advertisement to make clear if its product is different from the one searched.
Although the ruling was a victory for Google in that it protects its main source of revenue, LVMH is also satisfied with the ruling since it provides an opportunity for brand owners to stop search engines from selling certain ads.
Despite LVMH’s satisfaction with the ruling, analysts see this decision as a setback for brands given that brand owners cannot hold Google directly liable, but will have to pursue each advertiser individually
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