Rosetta Stone v. Google Decision Extends AdWords Battle

The legal campaign against Google's offering of trademarks as keywords in its AdWords program, including its policy of permitting third-party trademarks to be used in sponsored links, will continue as a result of the Fourth Circuit's decision this week in Rosetta Stone Ltd. v. Google, Inc. (April 9, 2012). This decision reversed, for the most part, the district court's summary dismissal of the plaintiff's trademark case. In remanding the plaintiff's trademark infringement and contributory infringement claims, the Court gave the plaintiff the opportunity to show that Google's use of ROSETTA STONE in its AdWords program creates a likelihood of consumer confusion.

The decision does not rule on the legality of Google's program, and nothing in the opinion suggests that the plaintiff is likely to succeed in establishing that the sale of trademarks as keywords simply to trigger sponsored links will be found to be infringing. However, the Court pointed to evidence on which