The case concerning the use of a competitor’s name in ‘keyword’ marketing for Internet searches has now been decided and the ruling has implications for those who use such practices.

The dispute involved Marks & Spencer (M&S) and Interflora. M&S had used ‘Interflora’ as a keyword in its Internet marketing, with the result that users who searched for  ‘Interflora’ in the Google search engine would see M&S near the top of their search results.

The case went to the Court of Justice of the European Union (CJEU) for a ruling on the application of the law on the use of a rival’s trade mark in keywords before being passed back to the High Court for judgment.

In the light of the CJEU’s ruling, the Court ruled that the way in which Interflora trades, which involves all members trading under their own names, and the fact that the company also has commercial relationships with a number of other substantial organisations meant that it was reasonable to assume that it would not be clear to a ‘well informed and reasonably observant’ user of the Internet that M&S is in fact a competitor of Interflora.

The result (subject to appeal) is that M&S will have to pay damages (to be assessed later) to Interflora in respect of the latter’s lost profits.

For advice on the legality of internet keyword marketing, or if you think a competitor is making unfair use of your brand name or trade marks, contact our Corporate and Commercial team on the number above or fill in our online enquiry form.

UK Top Tier Firm 2022 Lexcel Practice Management Standard Birmingham Law Firm of the Year for 2021 Resolution Collaborative Family Lawyer
The Law Society Accredited in Family Law Conveyancing Quality Scheme