Businesses want controls on keyword bidding to stop counterfeiters

LONDON - Almost 60% of businesses believe that a protocol needs to be created to engage search engines in the fight against counterfeiters, according to research by intellectual property firm Marks & Clerk.

Marks & Clerk's survey of more than 200 firms found that companies are concerned that counterfeiting will increase as a result of the recession and want to see much stronger controls put in place to protect them from internet abuses.

The push for protocol comes as Louis Vuitton parent company, LVMH, continues its long-running dispute with over the search giant selling brand name keywords to the highest bidder, including rivals or potential counterfeiters.

Pam Withers, partner at Marks & Clerk, said: "Search engines have not been immune from censure as a result of their increasing dominance and the effectiveness of their advertising strategies.

"The market needs a clear line to be drawn by the courts to establish where the ground lies, and if the onus should be solely on the consumer, or if the internet has now got too big for this to remain the case. But both sides will need to play ball.

"Businesses need to take firmer action to protect their brands, while service providers need to recognise their responsibilities and engage with the problem so they are not a vehicle for infringement."

More than 60% of the survey respondents also believe in the creation of a more powerful cybercrime authority, with stiffer penalties being imposed directly on infringers, while more than 50% suggest that stronger penalties should also be levied against the online marketplaces themselves, such as eBay, because they enable counterfeiting to prosper.

Withers said: "This is the first recession in the digital era and businesses are anxious about the consequences.

"The success of the internet has meant that we are seeing increasingly vociferous criticism of those who play a part in counterfeiting -- even those who do so unwittingly.

Among other findings is the fact that businesses are also concerned about the threat from legitimate competitors on the web, particularly when it relates to misinformation.

Almost 60% object to the practice of competitors paying for sponsored keywords in their name, and argue that this too should constitute trade mark infringement.

The Marks & Clerk online survey, of 216 businesses in the UK, was conducted in March and April 2009, with an emphasis on mid-ranking to senior business people.