Should Bidding on Trademark Terms in AdWords Be Illegal?

Written by Jason on May 16th, 2009
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21386423-copyIf you participate in AdWords at all, you should know that Google allow’s for advertisers to bid on trademark terms, meaning when someone types in a specific trademark term, your ad would show up in the sponsored results.

What advertisers are not allowed to do is use the trademark terms in the adcopy itself but as for having the ad come up for that term, that is not an issue.

Personally for me, I see no issue with it. The way I look at it is no different then how radio, television or a local newspaper is. As long as the adcopy is within the rules, the time and place it appears is only limited by the amount of money the advertiser wants to spend.

Well if you asked Audrey Spangenberg, she would have a completely different view point on this.

What happened is Audrey Spangenberg typed in “FirePond” (the name of her small software company) and she was not impressed with what showed up. Her company website (http://www.firepond.com/) appeared in the top position for organic listings but above it were competitors and this caused Ms Spangenberg to become furious.

Now, this is not the first time this has caused someone to get furious over just such an issue (Gieco & American Airlines) … and I am sure Google will see more of it in the future.

Whats more, Google is actually expanding its policy to bid on trademark terms to more than 190 countries (ohh I could just imagine the expression on Ms Spangenberg’s face).

Now when it comes to trademark laws, from what i can tell there is nothing that can really be done about this and to be honest I think that is a good thing… but I am sure there are plenty of lawyers who want a crack at trying to fight for it anyway.

Here is how I personally look at it.

As a consumer, if I was shopping for a specific product, I want to have both the product come up and the competition. That is the beauty of online shopping, you can look at different options and let the better product win.

If it was to become law that Google would be controlled as to who they can allow to pay for advertising, then our search experience would suffer but I also have to ask the question… would that mean that they would have to control what appears as organic listings also?

I mean, what happens if I have a competing product and I write a comparison review and my page shows up as number one?

Is this not what search engines are all about?

I mean the idea is to show us relevant results and is not a direct competitor completely relevant?

I 100% agree with not being able to use trademark terms in your ads, this causes the potential consumer to be mislead but when it comes to be able to have your ad show up when your trademark term is typed into Google… that is something I believe should stay as being allowed.

So whats your opinion?

Should AdWords Advertisers Be Able to Bid on TradeMark Keywords?

  • Yes (72%, 23 Votes)
  • No (28%, 9 Votes)

Total Voters: 32

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10 Responses to “Should Bidding on Trademark Terms in AdWords Be Illegal?”

  1. Miss Masters says:

    I guess it all depends on which side of the fence you are on. As a trademark term 'owner' (like this Audrey woman) of course you are going to be furious. However, it is true she can bid on her own trademark term and pay Google for better placement; but seriously if it I paid for the trade term JohnCow and I paid more than you did — you are saying you wouldn't be pissed off? If it the shoe were on the other foot, I would be …. so I guess I know how she feels.

    I am not saying it is illegal, maybe just immoral to cash in on someone else's success?

  2. Actualy it does happen to me, I see the competitors bidding on Traffickahuna, portalfeeder and things like that. Those are products I own and I am ok with that… do I wish that they couldn't… absolutely not. The reason is I bid on a lot of trademark terms… in fact (heres a tip) some of my most profitable PPC terms are major store brands and store names I get from the yellow pages.

  3. While reading the first part of the post I felt a bit sad for FirePond. But as you said in the end if they didn't allow bidding you actually lose that ability to compare. So I voted yes :)

  4. I don't believe

  5. Melody says:

    I don't think people quite understand the importance and hard work that is placed into branding and securing the trademark for a top performing company. It seems unfair to jump on their coat tail without them knowing for personal profit…

  6. LP says:

    It's just a matter of time before Google is not allowed to make money on trademarks…I'm surprised its still allowed to happen and anyone that thinks this will go on forever is foolish.

  7. CD Rates says:

    Your example of comparing media advertising like print and TV isn't a direct comparison. With media you are competing for a limited time slot. With Google (and similar programs) you are competing for more of a wordslot. On TV, News you only see ads from people who are authorized to sell the product being advertised. Pepsi doesn't have ads with a big Coke on top and then Pepsi's phone number or web address listed.

    I don't believe other companies should be able to bid on trademarked words. I certainly shouldn't have to pay more to have my ads on top for my trademarks. If it is left as is, a system could be put in place that for trademarked terms, the owner's ad is on top and charged the minimum bid. After all, you shouldn't receive free advertising either.

    I believe Organic searches are a different animal. If you type Pepsi, it is very difficult to ascertain what the searcher wants, and they may or may not be searching for the official Pepsi website.

  8. Your statement “Pepsi doesn't have ads with a big Coke on top and then Pepsi's phone number or web address listed.” as that is not what I am stating at all.

    If the advertiser could put the trademark term in the ad then yes your example would be legit, but you cant, you are only biding on the search results.

    You also need to remember, that Google is just a big website and as such they should be able to decide who how advertisers are shown. A trademark rule would mean not being able to advertise on anything like sony, ford or any of those words… this would be a huge thing for most advertisers and Google. 99% of trademark owners that are aware of the issue, realize this it is only the few loud few that are stirring the pot.

    Thats my opinion anyway.

  9. Brendon says:

    I think Google is actually helping customers who can actually buy after they find similar players and product in th e market

  10. I think you should be able to BID on trademark terms. (I agree not being able to use the terms in ads etc..) BUT you have to treat it like property if I want to build right next to you and the property is for sale you can buy it or i can… same way on G U can buy the ad space or i can. its your choice. Honestly if you don't have the trademark term in the ad you will be paying a bunch anyways so if i want to waste my money buying up the land around you why not let me got down in flames ( or promote myself so much over your stuff people forget about yours) ultimately it should be allowed. you have to look at it as property not as the Trademarks Search page.