Battle With EMS Is Latest Controversy Surrounding Google's Search-Term Bidding Policy
NEW YORK (AdAge.com) -- There's a fight brewing over the lightweight, wicking apparel technology known as Dri-Fit -- but the battle is about search marketing and the right to bid on trademarked terms.
Dri-Fit is a trademark of Nike, and the athletic giant has sued New Hampshire-based outdoor-sporting-goods retailer Eastern Mountain Sports, which does not sell any Nike clothing, for bidding on the term "Dri-Fit" in Google's advertising system. So when a user clicks on an EMS ad after searching for Dri-Fit, she is driven back to the retailer's website, which displays other versions of wicking technology.
For Google, bidding on competitors' trademarks is allowed -- even if some marketers think it shouldn't be. But the Dri-Fit debate is only the latest in a series of similar complaints. As major marketers funnel more money into the $9 billion search-advertising category, many are increasingly sour about Google's policy. Google recently settled a trademark-infringement suit brought on by American Airlines, which was upset that competitors advertised against its trademarked terms. The settlement didn't clarify the rules, but it did allow Google to keep selling ads against marketers' trademarks.
