Google Faces New Trademark Suit

Search giant Google is facing a new trademark infringement lawsuit stemming from its keyword bidding policies.

Late last month, CNG Financial Corp. quietly filed suit against Google in federal court in Ohio, complaining that Google allows CNG competitors to bid to appear as sponsored links when users query on the trademarked name "Check N Go."

The suit appears to be similar to a recent action brought against Google and Yahoo by insurance company Geico. Yahoo settled the case in late 2004, but Google prevailed at trial in December 2004, when federal district court Judge Leonie Brinkema dismissed the most crucial part of the case.

In her oral decision last December--which she later reiterated in writing in August--Brinkema ruled that Geico hadn't proven that consumers were confused when shown sponsored links from Geico rivals after they searched for Geico. Without consumer confusion, Geico couldn't prove that its trademark had been violated.

But in a portion of the holding affecting just a small portion of the case, Brinkema ruled that sponsored ads that included the word "Geico" in the headline or text of the copy caused confusion, and therefore violated Geico's trademark.

Google and Geico later settled that portion of the case.

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