Google Sued by American Airlines

Google's keyword advertising programs have faced trademark lawsuits before - but none from a company with the resources of American Airlines.

Internet search and advertising giant Google has faced trademark lawsuits over its keyword-based advertising programs in the past, but the players haven’t really been household names—think Rescuecom and American Blind & Wallpaper Factory. But now Google’s AdWords program has been challenged by a much larger opponent: American Airlines.

In a 55-page complaint filed in the U.S. District Court for the Northern District of Texas (PDF), American Airlines is seeking to have Google barred from selling keyword-based sponsored links associated with any of American Airlines’ trademarks (such as “AAdvantage” and “American Eagle”), along with punitive damages under both federal and Texas law. Basically, the way AdWords operates is that advertisers can bid to have their sponsored messages appear in response to keywords users enter into Google’s search engine; the highest bidders get their messages displayed more often. American Airlines alleges that by selling advertising associated with its trademarks, Google is unfairly infringing and profiting from the use of those trademarks, and creating consumer confusion. American Airlines also notes that Google has already implemented technology to prevent misuse of trademarks for European Internet users.

Google has not commented publicly on the suit, but the company’s trademark policy states the company “will not disable keywords in response to a trademark complaint.” The reasoning is pretty simple: while a search executed via Google’s search engine typically encompasses material from a broad range of businesses, nations, languages, and cultures, trademarks vary on a nation-by-nation basis and are typically restricted to a single form of business. For example, searching for “American Eagle”—which American Airlines claims as a trademark—also brings up search results (and sponsored links) for American Eagle Outfitters, which is not infringing on American Airlines’ trademark.

Although it seems unlikely this suit will go forward to a full trial—no doubt Google and American Airlines will try to work something out—it may represent the first time Google’s advertising programs have faced a serious intellectual property suit from a company with the legal and financial resources to play hardball. Although the U.S. airline industry isn’t exactly rolling on money, it is one of the world’s largest airlines.