So says the Sunday Business Post. Portakabin, which appears to be a builder of pre-fab housing or office space, has sued rival Primakabin, after Primakabin purchased the keyword “portakabin” from Google and caused it to redirect to Primakabin’s web site. Portakabin claims this amounts to trademark infringement, though it is not clear from the linked article whether they feel that Primakabin, Google, or both are infringing their trademark.
I’m not familiar with European law on this subject, but in the United States, section 43(a) of the Lanham Act (15 U.S.C. 1125(a)) would control. That section creates civil liability for
[a]ny person who . . . uses in commerce any word, term, name, symbol, or device . . . which . . . is likely to cause confusion, or to cause mistake, or to deceive as to the affiliation, connection, or association of such person with another person, or as to the origin, sponsorship, or approval of his or her goods, services, or commercial activities by another person . . . .
Under this “likelihood of confusion” test, a person commits trademark infringement whenever a mark is used in a manner which causes confusion as to the source of the goods, services, or commercial activities. This would seem like a pretty clear-cut case for Portakabin against Primakabin — by purchasing the keyword from Google, Primakabin had users searching for Portakabin’s trademark directed to Primakabin. That’s likely to cause confusion about the source of goods for the consumer who arrives at the Primakabin web site. (Note that the test is not whether a user is likely to be confused by the web site. The test is whether the consumer is likely to think that the goods, services, or commercial activities come from one source when they actually come from another. Which is to say, there is a likelihood of confusion — indeed actual confusion — in the trademark sense if a consumer never even knows that he has arrived at Primakabin’s web site, and think he’s getting something from Portakabin the entire time.)
Perhaps the more interesting question would be whether Google has any liability under US law. The Lanham Act does not expressly provide for contributory trademark infringement, but occasionally plaintiffs do succeed on such a theory. Earlier this year, a California jury hit two web sites with a verdict of $32 million for contributing to the infringement of Louis Vuitton’s trademarks. (In Europe, several cases of contributory infringement against eBay have been widely publicized.)
Also interesting is what this question does to the AdWords business model. Google sells advertising space on its search result pages which is customized to the searched-for keywords. If nobody can purchase a trademarked keyword, Google stands to lose any revenue it otherwise could have obtained from the sale. (That is, if only the holder of the mark can purchase it, the purchase price will be low or zero.)