22 October 2008

American Airlines sues Yahoo over trademarked search ads

CNET reports that American Airlines has filed a trademark infringement lawsuit against Yahoo claiming it is diverting business to the airline's competitors by allowing them to purchase ads that appear next to American Airlines-related search results.

The lawsuit, filed in federal court in Forth Worth, Texas, late last week, is similar to one that American Airlines filed against Google last year and then settled earlier this year.

The airline contends that allowing other companies to purchase ads that are displayed when someone searches on an American Airlines-trademarked term confuses the public and directs potential American Airlines customers to other companies.

Yahoo spokeswoman Kelley Benander provided this statement via e-mail: "We have confidence in our trademark policies and are prepared to defend them in court."

Yahoo's search marketing policies differ from Google's in that they only allow advertisers to use trademarks for sponsored search listings if they are resellers of the products or services of the trademark holder.

Eric Goldman, an associate professor of law at Santa Clara University School of Law and director of the school's High Tech Law Institute, said he was surprised by the lawsuit and predicted that the two sides will reach a settlement.

A Report by The Mole

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• Worried about the competition?
  
  

  I guess AA reveals more about its business than they might have intended. With its average aircraft age over 15 years and poor financial performance it is obviously looking for alternative sources of income. But Yahoo should not worry, I personally was sued by an AA subsidiary for USD$1,000,000 but the case collapsed before discoveries were completed!

  By Jon Hewson, Sunday, November 30, 2008