Satellite Nets Settle Trademark Keyword Tussle

Direct-broadcast satellite companies DirecTV and EchoStar Communications, owner of the Dish Network brand, have dropped a pair of dueling lawsuits over the use of their trademarks as search engine keywords.

The primary suit was filed in California last year by DirectTV, a division of Rupert Murdoch’s News Corp., against EchoStar and some individual Dish retailers. The suit alleged that the company and its agents had infringed on the DirecTV trademark in purchases of search keywords on Google and other pay-per-click ad services.

EchoStar countersued in a New York court last November, maintaining that the keyword buys were legal and comparative advertising. Google permits bidding on a rivals’ trademark as a keyword, although the mark can’t appear in the ad headline or copy. Yahoo! doesn’t allow bids on trademarked keywords.

Last week a New York District Court dismissed the EchoStar suit after receiving notice that both parties had reached a confidential settlement of their dispute. DirecTV’s California suit against EchoStar and selected retailers has also been dismissed, according to press reports.