Brand Hijacking: Using Your Competitor’s Name In Google AdWords

brand hijacking pay-per-click

Should brand hijacking be allowed in PPC campaigns?

What’s happening with Brand Hijacking?

Many have become both aware and concerned that Google AdWords and other pay-per-click (PCC) allows advertisers to take advantage of the names and identities of their competitors through brand hijacking.

For example, Google AdWords allows advertisers to promote their website whenever a Google search includes words the advertiser chooses. As Google pictured it, a boot salesman could participate in AdWords by selecting words like “western boots” which, if searched by a Google user, would show the boot salesman’s website. Though pictured by Google representatives as a way to generate a profit for Google while directing specific users to the websites that want them, business competitors have taken advantage of Google’s program in a controversial way.

What do courts say about the legality of brand hijacking?

Instead of choosing a phrase like ‘western boots’ to generate traffic to their website, some PPC users have chosen the names, including trademarks, of their competitors to generate traffic. For example, lawyers have secured the names of their competitors in PPC campaigns.  In this way, an Internet user attempting to find a specific attorney will have a second competing attorney’s name appear in advertising because that second attorney tagged the first attorney’s name in the pay-per-click campaign.

Essentially, this piggybacking on more successful or better known identities has spawned controversy because some lawyers have claimed that they have lost business as a result of PPC advertising allowing their business competitors to commandeer customers from them who specifically type in their name.

Claiming that individuals have the right to use, and prevent the misuse of their names, the issue was litigated in a Wisconsin court recently. While the court recognized that individuals do have some ‘right of publicity’ to preserve the integrity of their names, the court found that freedom of speech guarantees extend to business people using the names of their competitors in Google’s AdwWords program.

What does this type of brand hijacking mean for the future of the internet?

While future brand hijacking litigation will determine what the internet will look like in regard to PPC campaigns, if courts use the same logic the Wisconsin court did in preserving freedom of speech, U.S.-based businesses will likely be freely able to use their competitors’ names to generate website views. This has the potential to materially devalue brands and related trademarks.

Perhaps such freedom will enable newcomers to different professions to advertise and compete in a more even-keeled manner with established businesses. However, opponents of pay-per-click (PPC) being used in such a way have strong arguments on their side in favor of an individual’s right to control the use and misuse of his or her very name in brand hijacking campaigns.

Internet Lawyer: Are You An Accidental Internet Pirate?

Although an Internet lawyer, I’m also a bit of a history buff. Think you’ll like this story…

British pirate Captain Kidd accidentally killed himself and his “business” in the process. How did he do it? The government convinced him that if he quit his pirate ways and surrendered, Kidd would receive a full pardon for his piracy.

Once the captain was in custody, the pardon was promptly revoked and they hanged Kidd.

Fortunately for online marketers such as yourself, Internet piracy isn’t a hanging offense.

Yes, as your Internet lawyer can explain, there’s a good chance you’ve committed online piracy even if you don’t know it. If you have a website or sell info products online, chances are the content you’re using includes stuff that is copyrighted or trademarked by someone else and you’re using the material without their permission.

The legal term for this is “infringement.” Sounds fancier than “piracy.”

If the owner of the intellectual property you’re using decides to sue you, you could end up paying tens or hundreds of thousands of dollars in damages plus the guy’s Internet lawyer and trial attorney fees too (in addition to your own).

Right now, a major Internet marketer has been accused of giving away thousands of copies of software that is allegedly a pirated version of a product that sells for several hundred dollars. If true, can you imagine how much this marketer could end up paying?

And the sad thing is, you could end up with the same issue, whether you’re selling stuff on your site or just have informational articles and pictures.

Here’s why. The legality of the source of your material is key.

Sometimes the source of your content (a stock photo site, article writer, PLR content, software programmer, , website design, graphic design, etc.) is illegal and you don’t know it. In other words, you paid for something you thought was legit but the seller was either dishonest or ignorantly sold you something he didn’t have the legal right to sell. The latter often happens with marketers too cheap to retain an Internet lawyer to make sure everything’s legal before selling content to others.

Don’t commit business suicide like Captain Kidd.

Set up a consult with your Internet lawyer right now to create a business bullet-proofing plan.

Trademark Law: Trademarks and the Internet

trademarksSimply because a trademark owner hasn’t used his trademark in a domain name, Facebook profile name, Twitter name, or other social media does not mean that you can grab the name and use it to drive traffic to your business. This is the same trademark infringement issue one sees where a business uses its competitor’s trademark as a keyword in a Google AdWords campaign.

It isn’t a gray area. You can be held liable for infringement, deceptive practices, and under several other legal theories. If the trademark is registered with the U.S. Patent and Trademark Office, you might also be on the hook for hefty statutory damages plus the trademark owner’s attorney fees.

When in doubt, don’t use a competitor’s mark in your marketing and advertising until you’ve consulted with a lawyer who knows intellectual property law.

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