Google has announced that they are changing their policy on the use of trademarks in the text of AdWords ads in the U.S. Currently Google will show advertisements for words and phrases trademarked by other entities, but does not allow ads to use those trademarks in the text of ads. Beginning on June 15 the restriction of using trademarks in ad text will be removed as long as the ads meet certain criteria in both the Search and Content Networks. Those criteria require that the ads use the trademark in a “descriptive or generic way” or if the ads use the trademark in nominative way the advertiser must resell the trademarked good or service, sell “components, replacement parts or compatible products corresponding to a trademark”, or be an informational website. The new policy is comparable with the policies of Yahoo and Microsoft advertisings programs.
The change comes as Google faces continued legal challenges over the display of ads on searches for trademark words and phrases. The New York Times reports that a class-action lawsuit has been filed in Texas that challenges the policy. Legal experts told the New York Times that this was the first class-action lawsuit against Google over the policy. Another case, filed in 2005, related to the policy was recently reinstated by federal appeals court, reversing a decision by a district court. Google has previously reached settlements with a number of Companies, including American Airlines and Geico, over the policy.