Google Makes TM Changes to Adwords Across EU

Google have issued an interesting press release today about changes they are making to follow up on the recent ECJ Adwords decision.

We defended our position in a series of court cases that eventually made their way up to the European Court of Justice, which earlier this year largely upheld our position. The ECJ ruled that Google has not infringed trade mark law by allowing advertisers to bid for keywords corresponding to third party trade marks. Additionally, the court ruled that advertisers can legitimately use a third party trademark as a keyword to trigger their ads

Today, we are announcing an important change to our advertising trademark policy. A company advertising on Google in Europe will now be able to select trademarked terms as keywords. If, for example, a user types in a trademark of a television manufacturer, he could now find relevant and helpful advertisements from resellers, review sites and second hand dealers as well as ads from other manufacturers.

This new policy goes into effect on September 14. It brings our policy in Europe into line with our policies in most countries across the world. Advertisers already have been able to use third party trademarked terms in the U.S. and Canada since 2004, in the UK and Ireland since 2008 and many other countries since May, 2009.

The most interesting bit for Pangloss is that what accompanies this is a new type of notice and takedown procedure.

In the affected European countries after September 14, 2010, trademark owners or their authorized agents will be able to complain about the selection of their trademark by a third party if they feel that it leads to a specific ad text which confuses users about the origin of the advertised goods and services. Google will then conduct a limited investigation and if we find that the ad text does confuse users as to the origin of the advertised goods and services, we will remove the ad. However, we will not prevent use of trademarks as keywords in the affected regions.

This is an interesting way of implementing the caveats in the ECJ decision. Google have generally sought to automate all their processes as far as possible, whereeas this will create a lot of manual work in processing what will no doubt be a storm of cease and desist notices - compare the Content ID approach on YouTube where take down exists and is faithfully followed, but there is also a push towards persuading IPholders to submit their own works for pre emptive filtering. However in this case they clearly think the work involved in implementing this new scheme will make more money for them in advertising revenue, than it will lose in costs of manual take down. And take down should fend off most future litigation, though not, I suspect, all. For businesses , a harmonised policy through all EU is always a boon.

It would be interesting to see some empirical data emerging on how this affects the choice of keywords, click-through and text of AdWords ads in future, and how this does or not benefit the public interest in access to information in advertising. Google's usual approach to open data should be helpful here. (Will takedown notices under this scheme go to Chilling Effects website, as linking-to-content take down requests do? I hope so.)

HL Committee on the Digital Economy Bill

Yes, that again:-)

As Twitter and ORG resders may know, I'm meaning to write some kind of interim summary of what the Committee stage in the House of Lords has "fixed" in the Digital Economy Bill with respect to the file-sharing and copyright provisions (A: not a lot) and what still needs urgently brought up at Report Stage and if necessary all the way to and through the Commons (A: an awful lot). This despite the best efforts of some exceptionally knowledgeable and persistent Lords, including though not limited to Lord Lucas, L. Howard of Rising, Lord Clement-Jones and the Earl of Errol.

However it seems my job has possibly been done for me - by the Lords' own Human Rights Joint Committee. Their executive summary makes very, very interesting reading and is worth quoting in full:

"

The Digital Economy Bill has been introduced to update the regulation of the communications sector. Due to time-constraints we focus on a single issue in the Bill: illegal file-sharing.

Copyright infringement reports

The Bill establishes a mechanism whereby holders of copyright will be able to issue a 'copyright infringement report' to an ISP where it appears that the ISP's service has been used by an account holder to infringe copyright. ISPs will be required to notify account holders when a copyright infringement report is received in connection with their account. The ISPs will also be required to maintain a list of account holders who have been the subject of such reports.

We consider that it is unlikely that these proposals alone will lead to a significant risk of a breach of individual internet users' right to respect for privacy, their right to freedom of expression or their right to respect for their property rights (Articles 8, 10, Article 1, Protocol 1 ECHR). However, we call on the Government to provide a further explanation of why they consider their proposals are proportionate.

Technical measures

The Bill provides for the Secretary of State to have the power to require ISPs to take "technical measures" in respect of account holders who have been the subject of copyright infringement reports. The scope of the measures will be defined in secondary legislation and could be wide-ranging.

We do not believe that such a skeletal approach to powers which engage human rights is appropriate. There is potential for these powers to be applied in a disproportionate manner which could lead to a breach of internet users' rights to respect for correspondence and freedom of expression. We set out a list of points that the Government should clarify in order to reduce the risk that these proposals could operate in a manner which may be incompatible with the Convention.

Right to a fair hearing

The Bill provides for provisions for appeals in codes. There is little detail about the right to appeal in the case of copyright infringement reports or decisions about the inclusion of certain individuals' information on copyright infringement lists. We consider that statutory provision for a right to appeal to an independent body against inclusion on any infringement list would be a human rights enhancing measure.

Without a clear picture of the criteria for the imposition of technical measures it is difficult to reach a final conclusion on the fairness of the process for the imposition of technical measures. This is a further argument against the skeletal nature of the technical measures clauses. We ask for further information about the quality of evidence to be provided and the standard of proof to be applied to be provided on the face of the Bill.

Reserve powers

Clause 17 of the Bill provides the Secretary of State with the power to amend the Copyright, Designs and Patents Act 1988 by secondary legislation. The broad nature of this power has been the subject of much criticism. In correspondence with us, the Secretary of State explained that the Government intended to introduce amendments to limit the power in Clause 17 and to introduce a 'super-affirmative' procedure. The Government amendments would limit the circumstances in which the Government could use their powers to amend the Act by secondary legislation and would provide a system for enhanced parliamentary scrutiny.

Despite the proposed amendments we are concerned that Clause 17 remains overly broad and that parliamentary scrutiny may remain inadequate. We call for a series of clarifications to address these concerns."

Delightful to see such plain and clear and unadulterated good sense. I particularly applaud the second section: "We do not believe that such a skeletal approach to powers which engage human rights is appropriate." Put that on your tee shirt and smoke it.

In the meantime, all kinds of odd and eddying currents are flowing around the whole filesharing mess, here and abroad. In Blighty, we're seeing more and more sectors of industry, like the hoteliers, coming to the realisation of how bad the DEB will be for them as providers of public wi fi to the public; in Europe, the Belgian SABANE case, which imposed an impossible to fulfil filtering obligation on a Belgian ISP in the interests of rightsholders, is going on appeal to the European Court of Justice, with strong backing in evidence from trusted computer industry experts ; and the first Ozzie case on intermediaries and file sharing since KaZaa has been heard, and as with Oink in the UK ,the music industry have done themselves no favours by bringing it (though this case, being civil, includes no room for accusations of perverse juries).

More on all of these to come, I suspect, but on the last, I direct you meanwhile to my colleague Technollama's very helpful comments on the Australian case. From Pangloss, it is bonne nuit.

Google 1: Luxury Brands 0!

Pangloss is pretty bushed after the excellent SCL Policy Forum (thanks to co-chairs Chris Reed, Judith Rauhofer, and gracious hosts Herbert Smith) but just has to bring this breaking news; the Advocate General's opinion has come out (via Joris Hoboken), in the hotly awaited ECJ reference in Luxury Brands plc (OK, see real parties below) vs Google, on whether Google is liable for trademark infringement as a result of its keyword based "AdWords" service. The meat of the opinion is that Google is not liable for selling keywords to advertisers which correspond to trade marks owned by others, since the use of the TM, such as it is, is restricted to the relationship between Google and the advertiser, and is not aimed "outwards" at the user, thus not causing customer confusion.

TM lawyers will have plenty to say on that part but for Pangloss, the real excitement is what this says about search engines as immune or liable intermediaries under the EC Electronic Commerce Directive. The AG opinion (available in full now, since I started writing!) is not binding on the court but often predicts the likely result :

Advocate General’s Opinion in Joined Cases C-236/08, C-237/08 and C-238/08
Google France & Google Inc. v Louis Vuitton Malletier, Google France v Viaticum & Luteciel and Google France v CNRRH, Pierre-Alexis Thonet, Bruno Raboin & Tiger, franchisée Unicis

"..Mr. Poiares Maduro also rejects the notion that Google's actual or potential contribution to a trade mark infringement by a third party should constitute an infringement in itself. He opines that instead of being able to prevent, through trade mark protection, any possible use – including many lawful and even desirable uses –, trade mark owners would have to point to specific instances giving rise to Google’s liability in the context of illegal damage to their trade marks. [bold added]

In this context, the Advocate General finds that both Google's search engine and AdWords constitute information society services. He adds that service providers seeking to benefit from a liability exemption under the E-Commerce Directive should remain neutral as regards the information they carry or host.[bold added]

However, whilst the search engine is a neutral information vehicle applying objective criteria in order to generate the most relevant sites to the keywords entered, that is not the case with Adwords where Google has a direct pecuniary interest in internet users clicking on the ads' links.

Accordingly, the liability exemption for hosts provided for in the E-Commerce Directive should not apply to the content featured in AdWords."

Pangloss Sez: Wow that is interesting. So, it seems we have a clear and defiant rejection of the content industry-lead idea that IP holders can command online intermediaries - or just search engines? - to undertake prior blanket filtering to prevent alleged infringement of their rights. The context of AdWords is very different from that of Viacom v YouTube (for example) of course, but does this point to how we may see an upcoming ECJ reference panning out on liability of web 2.0 sites, like eBay, and in particular, whether they can be compelled by the likes of LVM to proactively filter out content, rather than run, as now, on a post factum notice and take down paradigm? See discusion of conflicting cases in US, Continental Europe and recently England on this controversial point, here.

On the other hand we also have a clear steer from the AG that where ISSPs like Google make money out of their "neutral" activities in hosting or linking to content by monetising them via connected advertising, they remain ISSPs but nonetheless become fair game for liability, and are no longer "neutral intermediaries". Would this mean that YouTube, who perhaps occasionally host IP infringing user generated content :-) and monetise this hosting via ads, could be commandedby a court to filter proactively, as opposed to simply wait for NTD; while, par contraire, eBay, who also sometimes host infringing content, but make their money from unconnected user commissions, not ads, would not be so susceptible and could continue to depend on expedient NTD to retain immunity?

Oh this is going to be fun :-)