American Airlines has sued Yahoo for trademark infringement according to a CNET News article. American Airlines claims that Yahoo is diverting business from them by allowing competitors to purchase ads next to search results for terms related to American Airlines trademarks. Yahoo’s current trademarks policy states that advertising on search terms that may be someone else’s trademark is only allowed “if the advertiser presents content on its Web site that (a) refers to the trademark or its owner or related product in a permissible nominative manner without creating a likelihood of consumer confusion (for example, sale of a product bearing the trademark, or commentary, criticism or other permissible information about the trademark owner or its product) or (b) uses the term in a generic or merely descriptive manner. In addition, the advertiser’s listing should disclose the nature of the relevant content.” American Airlines previously sued Google over the issue and reached a confidential settlement.