Euro-Counsels

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.