keyword-advertising

The FTC’s position follows from case law trends indicating that the use of keywords does not constitute trademark infringement under the Lanham Act. These trends may influence when and how trademark owners attempt to protect their trademarks from use by their competitors in keyword advertising.

Keyword Advertising Most search engines maintain programs that allow advertisers to bid on search terms, or keywords, that may attract customers searching for the products or services offered by the advertiser. The FTC explained the value of keyword advertising in its 1-800 Contact Complaint: "Search advertising is uniquely valuable to advertisers because it puts an advertisement in front of a consumer at the precise moment the consumer is signaling her interest or intent by telling the search engine what she is seeking: it is literally the right ad, for the right user, at the right time."

Some search terms in keyword advertising programs are trademarked, and trademark owners have sued both the search engines that sell their trademarked terms and the advertisers that purchase them. Trademark owners claim that the use of their trademarks in keyword advertising creates a likelihood of confusion among consumers.