Luxury brand Louis Vuitton is becoming notorious for protecting the wealth of its brand as it prepares to take search engine giant Google to the European Court of Justice over a trademark row.
The luxury retailer, which also owns Moet & Chandon, Donna Karan and DFS, is challenging Google’s Adwords platform of selling search words such as "vuitton" to the highest bidder.
David Wood, ICOMP Legal Counsel, has welcomed the move insisting that intellectual property rights foster creativity and innovation, including in the online environment, that enable firms and individuals to enjoy the commercial fruits of their efforts and investments.
He says that organisations that take advantage of their market power in online search, for example to weaken the control that rights holders have over how their IP is used online will begin to feel the pressure, “We hope that the Rights Agency is given the flexibility and the power to take on not only those that we see as traditional 'pirates'.”
Big brands believe Google is so dominant they have no choice but to advertise with the internet giant. However, changes to Google’s advertising rules mean rival companies are able to cash in on trademark names, a move that the company has defended saying it is confident that it is acting within the law and not abusing a market leading position.
Wood added: "The trademarks issue has resonated greatly with ICOMP's members as it seems to be another example of Google profiteering from using other peoples' content without their permission. It is difficult how this would be possible if Google did not enjoy such a strong position in relation to search and search advertising.
"Many brand owners are particularly aggrieved that they have to enter into bidding contests to keep their trademarks out of the hands of advertisers who are using them to sell other brands or counterfeits. Greater protection will mean that brand owners will have more choice as to where they place their ad spend."
Last year a French court has ordered online auction site eBay to pay €40 million (£31 million) in damages to LVMH for selling fake luxury goods online and for causing damage to the brand images and causing “moral harm”.
The commercial court ruled in favour of six LVMH brands that accused eBay of putting on sale fake handbags, clothes, perfumes and other luxury goods in a case that began 18 months prior.
Web users searching for its products will see adverts for rivals or firms selling counterfeit goods, according to the brand.
Google has appealed to Brussels after a French court ruled against it, insisting it does respect trademarks.
Last year brand names such as Lastminute.com and Channel 4 warned the search giant that it could be faced with major legal action over the way it sells advertising from key advertisers.
Wood concludes, “Common standards for the use of copyrighted works are important, although, these standards need to balance a number of factors and will need to evolve as internet use trends change. We need clear ground rules for 'legitimate remixing' and other innovative uses of content, whilst at the same time ensuring that the burden is not placed on rights holders to police the net themselves.
“ICOMP genuinely believes that bringing together interested parties to assist in the formulation of balanced legislative solutions creates 'win-win' scenarios for those that publish, own and reproduce intellectual property online and is the best way to make progress.”
A conclusion to the case is not expected for several months.
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