Google settles AdWord infringement dispute

The world's largest Internet search engine Google and American auto insurance firm GEICO reached an agreement on September 7 regarding a dispute arising from Google website's use of the latter's trademark.

In 2004 GEICO lodged a lawsuit accusing Google of infringing on the trademark of GEICO by selling AdWord to its competitor and misleading the consumers, which resulted in GEICO's brand worth of millions of dollars being used by its competitor for commercial purpose.

In August the Virginian federal court reached a preliminary ruling, which supports Google's continued selling of AdWord but at the same time allows GEICO to demand damages from Google on the same account. The ruling requires the two sides to reach a settlement agreement by September 7 or the case would enter official trial proceeding.

Advertising is an important source of income for Google. In the first half of this year ad hits have brought Google $2.6 billion of income and $712 million of profits. Therefore, if the final ruling of the court were favorable to GEICO Google would be hard hit.

By People's Daily Online