Google sued in Israel over keywords

An Israeli women's fashion chain has sued Google Israel for allegedly allowing a rival company to use its trademark in bidding on search-related ads, according to an article in EETimes.

Clothing company Matim Li is suing Google for $530,000, the article says. Google told EETimes that "the advertiser is the one responsible for the search words and the content of its ad."

A Google spokesperson in the U.S. said in an e-mail: "We believe this suit is without merit and we will defend against it vigorously."

The issue of trademark infringement in the use of keywords on search engines is at the heart of several cases in the United States. Last month a U.S. federal court ruled that a group of Canadian pharmacies did not infringe on the trademark of a U.S. pharmacy when they purchased keywords that use the name of one of the company's products.

Google and auto insurance provider Geico settled a lawsuit that alleged that Google was allowing Geico rivals to infringe on its trademarks by using the name "Geico" in keywords they purchased. But another case against Google, filed by CNG Financial, the parent company of a payday loan provider called Check 'n Go, is pending. And at least one other case filed against advertisers is in the courts.

Google lost a case in France in 2004 in which a court ordered the search giant to refrain from using the trademarks of European resort chain Le Meridien Hotels and Resorts to trigger keyword ads.