Pryor Cashman Intellectual Property Partner Andrew Langsam spoke yesterday to Bloomberg News and Business Week about the Google European Court ruling.

The March 23, 2010 article, “Google EU Ruling May Prompt Company to Tweak Its Search Layout,” discusses the ruling that Google could be liable under certain conditions if brand-name keywords link to ads that infringe the trademark. Advertisers also can be sued if they use keywords to trigger ads that hide the origin of the products.

Google sells sponsored links through an auction process, giving the highest bidders the right to advertise when users enter a keyword. Langsam noted that the problem for luxury-goods makers is people get directed to counterfeit versions of products. “The standard for determining trademark infringement is whether there is a likelihood of consumer confusion as to the source of the goods or services,” he said.

According to Langsam, stricter enforcement by Google could ultimately harm its revenue because counterfeiters won’t bid up prices for keywords. “Counterfeiters are going to say, ‘Wow, this is not a great way for us to make money. We’re spending a lot of money bidding up on these trademarked names and we’re not getting a lot in sales, so let’s forget it.””

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