Appeals court keeps alive trademark lawsuit against Google

03.04.2009
A trademark lawsuit against Google that a lower court had dismissed in 2006 has been given new life.

, a Syracuse, New York, computer services franchising business, sued Google in 2004, alleging that Google has seriously hurt its business by serving up competitors' ads when users search for "Rescuecom" in Google's search engine.

The suit alleges that Google and Rescuecom competitors buying the ads profit without authorization from the Rescuecom trademark, and that the practice can also confuse potential customers and franchisees, resulting in lost business.

In its defense, Google argued that the selling "Rescuecom" as a keyword to competitors that triggers their ads along with search results isn't a trademark infringement under the . Among other things, Google argued in its motion to dismiss that neither Google nor its advertisers use Rescuecom's name to identify the source of their products.

The U.S. District Court for the Northern District of New York dismissed the case in 2006. But, after a Rescuecom appeal, a three-judge panel of the U.S. Court of Appeals for the Second Circuit to the lower court on Friday.

"While we express no view as to whether Rescuecom can prove a Lanham Act violation, an actionable claim is adequately alleged in its pleadings. Accordingly, we vacate the judgment dismissing the action and remand for further proceedings," the appeals' court judges wrote in their decision.