google skeptic

Nice trademark ya got there.  Be a shame if it got hijacked….

Google encourages advertisers to purchase other companies’ trademarks as targeted search terms. And they’re expanding the practice into 190 countries. Is that fair use or a protection racket?

[snip case study]

For its part, Google says the plan is legitimate, even if trademark holders don’t like it. But even if it’s not a trademark infringement, “it certainly smells of a protection racket,” said attorney Terrence Ross, who represented American Airlines in its own trademark infrngement claim against Google. That case was settled.

I know of several companies spending millions of dollars a year in payments to Google to make sure that their company is the very first sponsored link.

Bryan Wiener agrees: “There is no question that it is going to increase Google’s revenue,” Mr. Wiener said. He said that companies that offer products or services, like computer makers or hotel chains, may not like the new policy because it will force them to place higher bids to advertise on searches for their own brand names.

This is a problem purely because of Google’s market dominance. You have to be obsessed with your ranking on Google and you have to be on top. If Google is selling the use of a company’s trademark to its competors and there is no other game in town, you really have no choice but pay Google’s price. That’s the beauty of a monopolistic position: You name the price, they have to pay.

[more] via Class action lawsuit says Google’s sales of keywords illegal | ZDNet Government | ZDNet.com.