By Jennifer LeClaire E-Commerce Times
02/07/05 1:21 PM PT
The French court found Google guilty of false publicity and counterfeiting, supporting Vuitton's claims that search engine users looking for genuine products were shown ads for companies selling forgeries. "We're studying the ruling," Google France spokeswoman Myriam Boublil said. "No decision's been taken yet on an appeal."
Google (Nasdaq: GOOG) today said it has not yet decided whether to appeal Friday's ruling by a French court that ordered it to pay US$260,000 plus costs to luxury goods maker Louis Vuitton for breach of trademark.
The high court in central Paris also ordered Google to stop displaying advertisements for Vuitton's rivals whenever Web searchers typed the plaintiff's name or other trademarks into the search engine.
The court found Google guilty of false publicity and counterfeiting, supporting Vuitton's claims that Internet users looking for genuine products were shown ads for companies selling forgeries.
Opening the Floodgates?
"We're studying the ruling," Google France spokeswoman Myriam Boublil said. "No decision's been taken yet on an appeal."
This is not the first time French courts have ruled against Google's "Adwords" system, a program that allows companies to use rival's trademarks in paid searches.
A court in Nanterre, west of Paris, found Google guilty of violating a trademark of an online tour operator in 2003. Also, Google is currently defending itself against Paris-based AXA, the world's third-largest insurer.
Financial analyst Martin Pyykkonen of Janco Partners told the E-Commerce Times that this latest ruling has little impact on Google, other than a small financial hit. However, if Google lost enough of these trademark suits, then it could open the floodgates for additional legal claims.
"This is not a big revenue issue today," Pyykkonen said. "But if the momentum among advertisers builds, then this could be a big issue for Google down the road. Google has been targeted because it is the most popular search engine and it has deep pockets."
To Appeal or Not to Appeal?
To appeal or not to appeal? That is a question the search engine industry is waiting to see answered. Google has appealed the French court's decision before in a similar case. However, Pyykkonen said Google could be employing a wait-and-see strategy before racking up any more legal fees.
Analysts said Google competitors like Yahoo (Nasdaq: YHOO) and Ask Jeeves would do well to keep a close eye on these suits. If Google falls victim to enough trademark infringement rulings, these companies could become the next target.
"It's fair to say that the U.S. is more tolerant and lenient about including a competitor's name in advertisements," Pyykkonen said. "But France has proved to be more conservative, and that's not good for Google since Europe is a big part of its growth strategy."
Google Stock Soars After Revenue Exceeds Expectations February 02, 2005
Marc Pado, U.S. market strategist at Cantor Fitzgerald & Co., said that Google's soaring earnings are a good sign for the economy, demonstrating that companies are confident enough to advertise. "This big surge in advertising dollars bodes very well for the economy as a whole," Pado said.
Google Quietly Moves into Domain Registrar Service February 02, 2005
Google's move to become a domain registrar seemed certain to spark more speculation about its future, though domain registration is arguably less of a variation from its core search and paid search technologies than some other forays Google has made, such as its efforts in the blogging space or its Gmail service.
Related News Alerts
More by Jennifer LeClaire
The Digital Car: Cool Automotive Accessories, Part 2 January 16, 2007
Not all the latest high-tech automotive electronics are built to entertain. Many give the driver more information and more control. Vehicle tracking devices can tell where the car is at any time, software installed in a smartphone can turn off a vehicle's security system whenever the owner approaches, and diagnostic tools can tell what's wrong with the engine -- and how much it'll be to fix it.
'World of Warcraft' Wows 8 Million Subscribers January 12, 2007
"World of Warcraft," the massively multiplayer online role-playing game, has reached the 8 million subscriber mark. Since debuting in North America in Nov. 2004, "World of Warcraft" has become the most popular MMORPG in the world. The franchise is available in seven different languages and is played on at least four continents.
AT&T Bids Goodbye to Cingular Brand January 12, 2007
Starting Monday, AT&T will launch a multimedia campaign to transition the Cingular Wireless brand name into its advertising and customer communications. The campaign will integrate popular imagery, phrases and icons from Cingular's traditional advertising, including the "raising the bar" tagline, the "Jack" character and the color orange.
Headline Feeds
Talkback: 
