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ARTICLE · 09 JULY 2013

Elcometer, Inc. v. TQC-USA, Inc.

Finnegan, Henderson, Farabow, Garrett & Dunner LLP
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This case is of interest because it is one of only a few cases in the Sixth Circuit dealing with keyword advertising, and it highlights the potential liability of manufacturers whose distributors engage in keyword-advertising infringement.

United StatesIntellectual Property
Eric Perrott
Eric Perrott
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This article previously appeared in Incontestable Trademark Newsletter - June 2013.

CASE SUMMARY

FACTS

Plaintiff Elcometer, Inc. ("Elcometer") manufactures handheld coating-thickness gauges and related testing equipment. Elcometer alleged that Defendant TQC-USA, Inc. ("TQC"), a direct competitor, encouraged and facilitated the infringement of Elcometer's trademark by encouraging or allowing its authorized dealers to use ELCOMETER as a search-engine keyword trigger and in the header of their paid Google advertisements next to their website address, "paintmeter.com," as seen below.

TQC moved to dismiss for failure to state a claim.

ANALYSIS

TQC argued that Elcometer "impermissibly lumped" TQC together with its distributors, Thoren and PaintMeter.com, and failed to establish an agency relationship between the parties sufficient to support its liability for the actions of the other defendants. The court disagreed, finding that Elcometer sufficiently

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