Nowadays the advertising sector takes a big role on the Internet. In the near future, the internet will be the biggest channel of the advertising world. When we say Internet advertising, Google is an advertisement market on its own. Google advertising is the most frequent ads of the Internet. There are two main reasons why Google ads are so much more popular and effective.

Next to click fraud, trademark violations are the second largest concern to Pay-Per-Click (PPC) advertising. Out of the total number of searches online, 20% are trademark searches. Meaning, company owned trademarks such as “Pontiac”, account for 20% of all search traffic. While 1 in 5 searches for trademark terms may seem high, most conversions do not originate from trademarked terms.

It is really good to see Yahoo making a big step forward in regulating abuse and misuse of trademarks, even though that probably translates in some revenue loss for them, by having certain advertisers migrate to a "friendlier" place such as Google. According to Google's policies, "[...] advertisers may select trademarked terms as keywords or use them in the content of the ad. As a provider of space for advertisements, Google is not in a position to arbitrate trademark disputes between advertisers and trademark owners.

The advertiser is using the term in a generic or merely descriptive manner unrelated to the trademark owner's goods or services (for example, we would allow an advertiser that sells apples to bid on the search term "apple," whereas an advertiser in the computer software/hardware industry bidding on the term "apple" would be required to have relevant content regarding the Apple Computer, Inc. brand of computer products and comply with our policy as described above).

Unfortunately, the public’s adoption of the term "google" as a verb may destroy the value of "Google" as a trademark. Trademarks serve as a designator of the source or sponsorship of goods or services. The greatest protection is afforded to trademarks which are highly distinctive and, therefore, highly effective at serving that purpose.

So, what basically happens is that a software package on one window of your computer gathers your web surfing data, crunches it, matches it with their database of similar but competing goods and services, and then gives you a pop-up ad on another window for the competitor of the guy who you actually found on the web.

The arbitration may be filed before the World Intellectual Property Organization (WIPO) or one of several other approved ICANN dispute forums. A decision is made within two months of appointment of the arbitrator. Costs are substantially less than a court proceeding since all proceedings are in writing.

Company B believes that you are intentionally trading on the goodwill of Company B by using a trademark that is confusingly similar to Company B’s Trademark and that your use of the Trademark does, or is intended to confuse or mislead customers seeking Company B’s products or services.

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