Findlaw.com has a recent finding by the 9th Circuit court regarding a case in which a company purchased keywords including a competitor’s trademark for Internet searches. Here’s a summary, based on the information found on Findlaw.com
“Network Automation (“Network”) and Advanced Systems Concepts (“Systems”) are both in the business of selling job scheduling and management software, and both advertise on the Internet. Network sells its software under the mark AutoMate, while Systems’ product is sold under the registered trademark ActiveBatch. Network decided to advertise its product by purchasing certain keywords, such as “ActiveBatch,” which when keyed into various search engines, most prominently Google and Microsoft Bing, produce a results page showing “www.NetworkAutomation.com” as a sponsored link. Systems’ objection to Network’s use of its trademark to interest viewers in Network’s website gave rise to this trademark infringement action.”
“The district court was confronted with the question whether Network’s use of ActiveBatch to advertise its products was a clever and legitimate use of readily available technology, such as Google’s AdWords, or a likely violation of the Lanham Act, 15 U.S.C. § 1114. The court found a likelihood of initial interest confusion by applying the eight factors established more than three decades ago in AMF Inc. v. Sleekcraft Boats, 599 F.2d 341 (9th Cir.1979), and reasoning that the three most important factors in “cases involving the Internet” are (1) the similarity of the marks; (2) the relatedness of the goods; and (3) the marketing channel used. The court therefore issued a preliminary injunction against Network’s use of the mark ActiveBatch.
Mindful that the sine qua non of trademark infringement is consumer confusion, and that the Sleekcraft factors are but a nonexhaustive list of factors relevant to determining the likelihood of consumer confusion, the 9th Circuit “concludes that Systems’ showing of a likelihood of confusion was insufficient to support injunctive relief. ” Therefore, the 9th Circuit vacated the injunction and reverse and remand (sent it back to the lower court.)