Geico Sues Google, Yahoo Over Trademark Linking

By Michael Ha

NU Online News Service, May 20, 3:16 p.m.EDT?Auto insurer Geico is suing the giant Internetsearch-engine firms Google and Yahoo, charging they illegallylinked Geico's trademarked name to their advertisers' Web sites.[@@]

Google Inc. and Yahoo's Overture Services unit have engaged inactivities that amount to "trademark infringement" and theseactivities "deliberately mislead consumers" as part of highlyprofitable search-driven advertising programs, Geico told NationalUnderwriter.

Geico filed its legal action this month at U.S. District Courtin Alexandria, Va.

"Geico seeks an injunction against any further unauthorized useof its service marks by defendants in their advertising programsand to recover damages for defendants' illegal acts," the insurer'sspokesperson said.

"This practice deliberately misleads consumers and allowsGeico's competitors and these defendants to illegally exploit fortheir own commercial purposes Geico's investment of hundreds ofmillions of dollars in its brand," according to thespokesperson.

Yahoo said it can't discuss issues regarding pending lawsuits.Google's representatives did not immediately respond to a requestfor comment.

Geico said in its complaint that Google and Yahoo have beenengaged in selling Geico's registered trademark name as searchterms or "key words" to advertisers on defendants' Web sites anddirecting Web traffic to these advertisers' "sponsored listings" or"sponsor matches."

"As a means to generating advertising revenues for themselves,"the Geico complaint stated, "defendants purport to sell the rightto use Geico's nationally recognized service marks to third-partyadvertisers who have no connection to Geico and who seek to driveInternet traffic to their own Web sites when consumers perform asearch using one of the famous Geico marks."

The complaint goes on to say that this practice has been takingplace without Geico's consent or authorization and that it iscausing confusion among consumers who are using Google and Yahoosearch engines to contact or learn more about Geico.

In the case of Google, when a Web user typed in "Geico" as asearch term, the search results also included a paid advertisementlink listed as "Geico Auto Insurance: Save $300 California AutoInsurance" that led to the Web site of 21st Century InsuranceCompany, based in Woodland Hills, Calif.

The auto insurer's complaint states that this type of use of thefamous Geico trademarked names "dilute their value and underminesGeico's investment of hundreds of millions of dollars in recentyears to promote its auto insurance services under those marksthrough local and national radio, television, direct mail and printadvertising."

The Chevy Chase, Md.-based Geico, a unit of Omaha, Neb.-basedBerkshire Hathaway Inc., is currently the largest direct marketerof automobile insurance in the United States, as well as the fifthlargest private-passenger auto insurer.