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Rosetta Stone Goes After Google in Adwords Suit (RST, GOOG)
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By now just about everybody knows who Rosetta Stone, Inc. (NYSE:RST) is for its leadership in language learning and translation software. It seems that Google Inc. (NASDAQ: GOOG) has gotten caught up on the wrong side of the line in an advertising-related case. Rosetta has sued Google and is seeking to prevent the search engine giant from infringing upon its trademarks. The suit alleges that Google is allows third parties, including individuals involved in software piracy operations, to purchase the right to use Rosetta Stone trademarks or other terms confusingly similar in Google’s AdWords advertising program.
The case has been filed in the United States District Court for the Eastern District of Virginia. This comes on the heels of Google changing its policy to allow advertisers to use trademark terms in their ad text without owning the trademark and without permission from the trademark holder.
Rosetta Stone says that Google’s search engine helps third parties to mislead consumers and misappropriate Rosetta Stone trademarks by using them as ‘keyword’ triggers for paid advertisements. It also notes that advertisers can use these terms within the text or title of paid advertisements. The basis of the suit is that Google and its advertisers benefit financially from and trade off the goodwill and reputation of Rosetta Stone without incurring the substantial expense that Rosetta Stone has incurred to build its popularity, recognition, and brand loyalty.
Rosetta Stone is seeking injunctive relief to stop Google from selling the Rosetta Stone trademarks or other terms confusingly similar for use in Google’s AdWords advertising program. If you search the term “Rosetta Stone” on Google, there are other ads there in the sponsored links.
There are many issues in trademark and copyrights out there. What is fair use and what is capitalizing off of the work of others is still in the push and pull battle out there on the Internet and in the legal system.
Jon C. Ogg
July 10, 2009
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