The whole keyword-advertising-violates-our-trademark debate has been brought to court more than once and more than once has been unsuccessful. American Airlines, though, is perhaps the largest company to make the claim, filing a trademark violation suit against Google.
American isn't thrilled that competitors and travel sites can bid on its company name as a keyword. Though the competitor-keyword argument has been made before, this may be a first where the plaintiff cites online retailers selling competitor wares. It would appear, if the suit were successful, Coke could sue television stations advertising that 7-11 sells Pepsi too.
American complains that competitor keyword bidding and the ad display associated with the keywords are tantamount to getting a "free ride on American Airlines' brands through use of Google's technology," and that Google is guilty of "vicarious trademark infringement."
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It may be the second argument that's disturbing to many. Technology and Law Blog's
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