Google AdWords could be held liable for sale of trademarks

The French Supreme Court considers that Google can be held liable for sale of trademarks as AdWords on the grounds of civil liability, and has referred its case with Louis Vuitton to the Paris Court of Appeals.

Google: French court rules in Louis Vuitton case
Google: French court rules in Louis Vuitton case

The ruling could have significant implications for the internet giant's advertising business, and comes despite the European Court of Justice deciding on 23 March that Google had not infringed on any trademark laws.

The French court will now assess whether the conditions apply for the French courts to determine, considering the facts of the case, any potential wrongdoing committed by Google to the detriment of Louis Vuitton.

LVMH welcomed the Supreme Court’s ruling and said in a statement: "This ruling helps to clarify the rules applicable to e-commerce, in order to ensure greater legal certainty to the benefit of both businesses and consumers operating online."

Google’s AdWords service also came under fire recently, when the French antitrust authority ordered Google to restore the account of Navx, a location data company. As part of the ruling, Google was ordered to clarify its AdWords policies and contracts.

Benjamin Amaudric Du Chaffaut, Google's Legal Counsel in France, said: "Our guiding principle has always been that advertising should benefit users, and our aim is to ensure that ads are relevant and useful.

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

"The Cour de Cassation has confirmed that Google has not infringed trade mark law by allowing advertisers to select keywords corresponding to third party trade marks. We believe this decision is beneficial for users."

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