Google AdWords - Infringing or Liberalizing Trade? : A Comparative Analysis of Treatment of Google AdWords under U.S. and EU Trademark Law

Abstract: Since Google as the world's largest and most popular search engine encourages Internet users to browse their search results, it is naturally functioning as an advertising vehicle and has turned into the most profitable Internet company in world's history. Google's success, however, has been subject to strong criticism as one of the main concerns is linked to Google AdWords, which reveal keyword-triggered advertisements as well as sponsored links besides unsponsored search results. Courts both in Europe and the United States under different trademark legislation felt forced to address the collision of pre-Internet trademark infringement doctrines with modern technology.  As Google AdWords have changed the way consumers observe Internet advertisements and search engines, the boundaries of trademark law have continuously been pushed forward. This development, thus, raises the question of whether Google AdWords by now are considered to function as trade liberalizer or trade infringer under two different trademark jurisdictions.  What is certain as of now is, that if the current circumstances are to change, courts cannot solely rely on old doctrines to adapt to new situations. Instead, new rules should not be subject to isolated court proceedings by individual instances regarded that jurisdictions of courts are limited by territorial boundaries and Google AdWords have evolved as an element of borderless online sphere. Taking these new challenges into account, this paper argues that addressing trademark issues originated by AdWords will demand an international consideration and coordinated efforts between the EU and the United States to bring forward an international solution.