Make smart financial decisions with DailyFinance

Google vs. Geico Round 2: Judge Asks for Settlement

Infuriatingly, District Judge Brinkema in the Geico vs. Google case has written a judgment that opens the door to reinterpreting her previous judgment. Let's backtrack.

  • December 16, 2004, Brinkema issued a summary judgment in Google's favor, throwing out Geico's first round of complaints of trademark violation. Geico claimed that any ad using Geico trademarks caused confusion for the consumer, and should be ruled illegal—and that Google should stop allowing advertisers to use them.

  • The case didn't end there. Brinkema continued to hear arguments on Geico's second complaint, which was that specific ads cause confusion. The difference here is that the advertiser would be liable for writing an illegal ad, but Google would not be liable for allowing the advertiser to write a good ad using Geico's trademark. Google never disagreed, in principle, that an advertiser could write an ad that confuses trademarks.

Brinkema has now ruled that Geico's second argument has merit, and urged the two companies to reach a settlement without Brinkema having to actually hear the case. This is problematic because Google should not be held responsible for the second complaint. Further, Geico is now spinning the ruling as if Brinkema's first decision never happened!—

"The written decision leaves open the issue of whether the sale and use of trademarks by search engines and advertisers to trigger ads that do not contain other parties' trademarks violates the law," said Charles Davies, GEICO's General Counsel. "In light of this decision, search engines and their advertisers should consider their potential liability if they intend to use other companies' trademarks in paid search advertising."

Geico is throwing potential liability right back at the search engines, ignoring Google's decisive summary victory on that point. This is absolute crap, from a company's whose lawsuit has been mostly crap from the start. Yahoo! bailed out of this lawsuit early on, in a cowardly and misguided settlement that cost it unnecessary money and forced Google to fight alone. I hope Google continues with integrity, insisting on a clear-cut and correct precedent that even the Geico lawyers will understand.

RESOURCES

RSS NEWSFEEDS

Powered by Blogsmith

Other Weblogs Inc. Network blogs you might be interested in: