American Airlines Sues Yahoo over Search Terms
Date : 23 Oct 2008 Category : Technology
NewsFactor NetworkThe airline complains that when computer users enter American's trademark terms such as AAdvantage, the name of its frequent-flier program, in a search they can be directed to competitors who pay Yahoo for the traffic.
American filed its lawsuit last week in U.S. District court in Fort Worth for unspecified damages, legal costs and money to run a "corrective" advertising campaign.
Kelley Benander of Yahoo said, "We have confidence in our trademark policies and are prepared to defend them in court."
Yahoo's policy allows advertisers to use the trademark terms of others only if it refers to the trademark "without creating a likelihood of consumer confusion."
American, a unit of Fort Worth-based AMR Corp., reached a confidential settlement of a similar lawsuit against Google this summer, also in federal court in Fort Worth.
Each side agreed to pay its own legal fees, and American got nothing from Google. But Google searches for "American Airlines" or "AAdvantage" no longer produce paid ads along the right side of the portal screen.
Google had prevailed in previous lawsuits filed by other companies over their paid search advertising practices using trademark terms.
Tim Smith, a spokesman for American, said Tuesday that the airline is suing Yahoo to protect its intellectual property and prevent confusion among consumers and the diversion of shoppers looking for American's products.
Smith said the dispute centers on Yahoo's practice of selling American's trademark terms to other companies for use in Internet searches. He said the airline saw value in Internet searches and hoped to continue a "professional and amicable relationship" with Yahoo.