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ARTICLE · 20 SEPTEMBER 2016

Adwords: Paragons or Parasites?

The use of AdWords generally does not constitute trade mark infringement because it does not represent trade mark use.

AustraliaIntellectual Property

SUMMARY

A recent Federal Court case has affirmed the position in Australia that the use of AdWords generally does not constitute trade mark infringement because it does not represent trade mark use.

ADWORDS

"AdWords" are marketed by Google and they can be very frustrating to the owners of well-known brands. AdWords of major brands can be purchased by third parties from Google so that the landing page of the third party pops up whenever an internet searcher selects the major brand. Many people have seen this activity as being parasitic on the reputation of major brands.

TARGET MARKET

The recent case of Veda Advantage Limited v Malouf Group Enterprises Pty Limited (2016) FCA 255 concerned the VEDA brands of credit rating services. These brands are owned and marketed by Veda Advantage which is reportedly the largest provider of credit ratings in Australia. A bad Veda credit rating can seriously affect the commercial activities of businesses and individuals.

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