CINCINNATI – Google is knowingly infringing trademark by selling trademarks as keyword search links to competitors of the businesses that own the marks, and it did this “to enhance the value of its initial public stock offering and in order to increase its advertising revenues, which account for nearly all of Google’s total earning,” CNG Financial Corp. claims in Federal Court.
CNG claims Google misappropriated and is unjustly enriching itself by selling CNG’s registered trademark, “Check ‘N Go,” to competitors, whose names appears as “sponsored links” to a Google search of the trademarked term. CNG claims Google knows it is violating the law, and even advertised it in its IPO prospectus. CNG claims Google admitted it will infringe trademarks by policy, stating in the prospectus for its IPO: “In order to provide users with more useful ads, we have recently revised our trademark policy in the U.S. and Canada. Under our new policy, we no longer disable ads due to selection by our advertisers of (other parties’) trademarks as keyword triggers for the ads. … As a result of this change in policy, we may be subject to more trademark infringement lawsuits. Defending these lawsuits could take time and resources.
Adverse results in these lawsuits may result in, or even compel, a change in this practice which could results in a loss of revenue for us, which could harm our business.” CNG wants use of its trademark in Google ad programs enjoined, and compensatory and punitive damages. It is represented by Ann Gallagher Robinson with Frost Brown Todd.