American Airlines Sues Google Over Keyword Ads

American Airlines is suing Google over keyword ads triggered by the airline’s trademarks.

Though Google has had multiple legal disputes over the use of trademarked terms in its AdWords program — including a dispute it settled with Geico and one with American Blind and Wallpaper Factory scheduled to go to trial later this year — American Airlines is the largest company to sue it so far.

“Some individuals and entities attempt to take advantage of consumers by marketing their products or services using the brands of others,” American said in its complaint. In effect they seek a free ride on the reputation and goodwill of another’s brand. This lawsuit involves exactly such a situation – efforts by certain companies to free ride on American Airlines’ brands through use of Google technology.”

The airline filed the lawsuit on Thursday in the U.S District Court in Fort Worth.

The complaint accused Google of helping advertisers mislead consumers into thinking that sponsored links returned as the results of searches using American’s trademarks are sponsored by the airline.

The airline also claimed it has been forced to spend money on trademarked keywords to protect its business.

“American Airlines has not sponsored these sponsored links or otherwise authorized Google to sell the right to use the American Airlines marks in commerce to draw Web users to the Web sites,” said the complaint. “Nevertheless, the unauthorized sponsored links appear in close and confusing proximity to both the listings generated by Google’s purportedly ‘natural’ system and the sponsored links that Google forces American Airlines itself to purchase to reduce the likelihood that Internet users will be diverted to other Web sites.”

The complaint seeks to stop Google from selling American Airlines trademarks as keywords. It also seeks all the money Google has made from using the airline’s marks, plus attorney fees, punitive damages and enough money to mount an ad campaign “to dispel the effects of Google’s wrongful conduct.”

American also seeks an order for Google to place “corrective” advertising on its site.