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Louis Vuitton is a leading French group in luxury goods and the owner
of more than 60 prestigious trademarks, including Christian Dior
perfumes, major designer brands Celine, Fendi, Kenzo, fine wines and
spirits Dom Perignon (James Bond favourite champagne), château d'Yquem,
etc.
At stake, was the Google advertising campaign tools
"Adwords", which allow users to buy keywords such as famous brands to
advertise their own products.
"Google has not infringed trademark
law by allowing advertisers to purchase keywords corresponding to
their competitors' trademarks," said the ECJ in its decision on joint cases, rendered the
23rd March 2010.
"Advertisers themselves, however, cannot, by
using such keywords, arrange for Google to display ads which do not
allow internet users easily to establish from which undertaking the
goods or services covered by the ad in question originate," added the
ECJ.
The ECJ added that France's highest court, the Cour de
Cassation, will have the final say on a "case by case basis" on whether
there is an "adverse effect, or a risk thereof, on the function of
indicating origin".
In a nutshell, there is no counterfeiting when
it is obvious for the end-user that the product advertised originates
from another company.
From an "unfair competition" law angle
however, it is likely that undertakings will be able to obtain damages
for dilution of their brand image and illicit exploitation of their
name.
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