Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      MultiChoice scraps annual DStv price hikes for 2026 - David Mignot

      MultiChoice scraps annual DStv price hike

      20 February 2026
      What Gen Z really thinks about the tech world it inherited - Tinashe Mazodze

      What Gen Z really thinks about the tech world it inherited

      20 February 2026
      Showmax 'can't continue' in its current form

      Showmax ‘can’t continue’ in its current form

      20 February 2026
      Free Market Foundation slams treasury's proposed gambling tax

      Free Market Foundation slams treasury’s proposed gambling tax

      20 February 2026
      South Africa's dynamic spectrum breakthrough - Paul Colmer

      South Africa’s dynamic spectrum breakthrough

      20 February 2026
    • World
      Prominent Southern African journalist targeted with Predator spyware

      Prominent Southern African journalist targeted with Predator spyware

      18 February 2026
      More drama in Warner Bros tug of war

      More drama in Warner Bros tug of war

      17 February 2026
      Russia bans WhatsApp

      Russia bans WhatsApp

      12 February 2026
      EU regulators take aim at WhatsApp

      EU regulators take aim at WhatsApp

      9 February 2026
      Musk hits brakes on Mars mission

      Musk hits brakes on Mars mission

      9 February 2026
    • In-depth
      How liberalisation is rewiring South Africa's power sector

      How liberalisation is rewiring South Africa’s power sector

      21 January 2026
      The top-performing South African tech shares of 2025

      The top-performing South African tech shares of 2025

      12 January 2026
      Digital authoritarianism grows as African states normalise internet blackouts

      Digital authoritarianism grows as African states normalise internet blackouts

      19 December 2025
      TechCentral's South African Newsmakers of 2025

      TechCentral’s South African Newsmakers of 2025

      18 December 2025
      Black Friday goes digital in South Africa as online spending surges to record high

      Black Friday goes digital in South Africa as online spending surges to record high

      4 December 2025
    • TCS
      Watts & Wheels S1E4: 'We drive an electric Uber'

      Watts & Wheels S1E4: ‘We drive an electric Uber’

      10 February 2026
      TCS+ | How Cloud On Demand is helping SA businesses succeed in the cloud - Xhenia Rhode, Dion Kalicharan

      TCS+ | Cloud On Demand and Consnet: inside a real-world AWS partner success story

      30 January 2026
      Watts & Wheels S1E4: 'We drive an electric Uber'

      Watts & Wheels S1E3: ‘BYD’s Corolla Cross challenger’

      30 January 2026
      Watts & Wheels S1E4: 'We drive an electric Uber'

      Watts & Wheels S1E2: ‘China attacks, BMW digs in, Toyota’s sublime supercar’

      23 January 2026

      TCS+ | Why cybersecurity is becoming a competitive advantage for SA businesses

      20 January 2026
    • Opinion
      A million reasons monopolies don't work - Duncan McLeod

      A million reasons monopolies don’t work

      10 February 2026
      The author, Business Leadership South Africa CEO Busi Mavuso

      Eskom unbundling U-turn threatens to undo hard-won electricity gains

      9 February 2026
      South Africa's skills advantage is being overlooked at home - Richard Firth

      South Africa’s skills advantage is being overlooked at home

      29 January 2026
      Why Elon Musk's Starlink is a 'hard no' for me - Songezo Zibi

      Why Elon Musk’s Starlink is a ‘hard no’ for me

      26 January 2026
      A million reasons monopolies don't work - Duncan McLeod

      South Africa’s new fibre broadband battle

      20 January 2026
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Opinion » Rachel Sikwane » AdWords creates trade marks minefield

    AdWords creates trade marks minefield

    By Rachel Sikwane16 July 2013
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp
    Rachel Sikwane
    Rachel Sikwane

    Google’s search advertising service, AdWords, is becoming increasingly contentious in trade mark law. When you buy a word from Google as an AdWord, this has the effect that whenever anyone enters that word as a search term, your pop-up advert will appear on the screen alongside your search results.

    You can buy generic words as AdWords, but you can also buy words that happen to be trade marks. The trade mark law issue that arises is this: if you buy the trade mark of another company as an AdWord, are you infringing that company’s trade mark rights?

    This question has come up in a number of European cases. In a case involving Louis Vuitton, the court of justice of the European Union (CJEU) said that there will be no infringement provided that the pop-up ad makes it quite clear to a reasonably savvy Internet user that there is no connection between the product being advertised and the owner of the trade mark. In other words, the ad must not mislead.

    The court’s thinking here was quite simple: a trade mark is a “badge of origin”, so if anyone uses it in a way that does not suggest origin, there is no infringement. As for Google, the court said that it’s not liable for trade mark infringement either, because it doesn’t actually use the trade mark but simply stores it.

    A similar approach was adopted by a Dutch court when it had to decide whether Philips had infringed trade mark registrations for Tefal and Actifryer, the trade marks of a major competitor. Philips had bought these names as AdWords and used them to ensure that people searching them saw an ad for a Philips product called Airfryer. The Dutch court said that most people now understand how AdWords and pop-up ads work, and that they won’t be confused provided that the ad doesn’t mislead them.

    Then there was the case of Interflora vs Marks & Spencer. In that case, Marks & Spencer had bought Interflora (a registered trade mark) as an AdWord, which had the result that whenever anyone searched “Interflora”, pop-ads for Marks & Spencer’s competing flower service appeared on screen. The UK court – after referring the matter to the CJEU for advice – held that Marks & Spencer’s ads did not make it clear to the reasonably savvy Internet user that there was no connection between the services it advertised and the Interflora trade mark. In other words, there could be consumer confusion.

    The reason for this was that, although Marks & Spencer’s ads did not actually feature the Interflora trade mark, the Interflora business model is based on the company having deals with large retailers, in terms of which those retailers can use the Interflora name together with their own brand names. This meant that people searching “Interflora” and getting an ad for Marks & Spencer’s flower service might assume that this was an Interflora service.

    The court said that it is up to the advertiser to make it quite clear that there is no connection, which suggests that Marks & Spencer’s ad should have actually said that there was no connection with Interflora.

    So far, so good. The law makes perfect sense, because it’s likely that most people who use the Internet know that if they search a brand name on Google they will get references to competitor products, and they’re not confused by this. And the approach that’s been adopted in Europe ties in with our law, because in 2007 the supreme court of appeal in the case of BMW vs Verimark confirmed that trade mark use that doesn’t impact on the trade mark’s ability to denote origin – non-trade mark, descriptive or incidental use as it’s sometimes called – does not infringe a trade mark registration. In that case, the issue was whether Verimark’s use of a BMW vehicle (showing the BMW badge) in an ad for a car polish infringed the trade mark registration for the BMW badge. The court held that it didn’t because no one seeing the ad would assume any commercial connection between the polish and the vehicle.

    The upshot of all this is that as long as your pop-up ad doesn’t cause confusion, there should be no problem with the purchase of a competitor’s trade mark as an AdWord.

    Obviously your pop-up ad should not feature the competitor’s trade mark. In some cases it will be quite clear that there’s no commercial connection – for example, if it’s well known that the two parties are competitors. In cases where it’s not so well known, a disclaimer in the pop up-ad would be a good idea.

    This is probably what the law on AdWords is in South Africa. But the story does not end here, because in the Interflora vs Marks & Spencer case the CJEU went further, veering into relatively uncharted waters. The court said that although a trade mark’s main function may be to indicate origin, it has other functions too. So it follows that if a pop-up ad affects another trade mark function, there may still be an infringement.

    Just what other functions does a trade mark have? Although we occasionally hear of a trade mark’s advertising function, in the Marks & Spencer vs Interflora case, the CJEU spoke of a trade mark’s investment function. The court suggested that this function might be affected if the pop-up ad substantially interferes with the trade mark owner’s ability to use its trade mark to acquire or preserve a reputation capable of attracting consumers and retaining their loyalty.

    But the UK court felt that this had not happened here because the reputation or image of the Interflora brand had not been damaged. The CJEU also suggested that pop-up ads might infringe the protection that well-known brands have against dilution (especially where they contribute to the brand becoming generic), free-riding and tarnishing. But once again, the UK court felt that this had not occurred here.

    So, although it’s possible that there will be further developments on the AdWords issue in the future, for the time being our advice is as follows: you can buy another company’s trade mark as an AdWord, but you can’t use that AdWord to confuse consumers.

    This ties in with the warning recently given by the US Federal Trade Commission to search engines such as Google and Yahoo to distinguish “paid-for” search results (like pop-up ads) from “natural results”, so as to avoid user confusion.

    • Rachel Sikwane is senior associate in intellectual property at Edward Nathan Sonnenbergs
    Follow TechCentral on Google News Add TechCentral as your preferred source on Google


    AdWords Edward Nathan Sonnenbergs ENS Google Google AdWords Rachel Sikwane
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleNew minister, new bills
    Next Article More HD channels from DStv

    Related Posts

    Dr Google, meet Dr Chatbot - neither is ready to see you now

    Dr Google, meet Dr Chatbot – neither is ready to see you now

    10 February 2026
    AI chatbots are coming to Apple CarPlay

    AI chatbots are coming to Apple CarPlay

    8 February 2026
    From stocks to crypto, markets reel as AI doubts grow

    From stocks to crypto, markets reel as AI doubts grow

    6 February 2026
    Company News
    Service is everyone's problem now - and that's exactly why the Atlassian Service Collection matters

    Service is everyone’s problem now – why the Atlassian Service Collection matters

    20 February 2026
    Customers have new expectations. Is your CX ready? 1Stream

    Customers have new expectations. Is your CX ready?

    19 February 2026
    South Africa's cybersecurity challenge is not a tool problem - Nicholas Applewhite, Trinexia South Africa

    South Africa’s cybersecurity challenge is not a tool problem

    19 February 2026
    Opinion
    A million reasons monopolies don't work - Duncan McLeod

    A million reasons monopolies don’t work

    10 February 2026
    The author, Business Leadership South Africa CEO Busi Mavuso

    Eskom unbundling U-turn threatens to undo hard-won electricity gains

    9 February 2026
    South Africa's skills advantage is being overlooked at home - Richard Firth

    South Africa’s skills advantage is being overlooked at home

    29 January 2026

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    MultiChoice scraps annual DStv price hikes for 2026 - David Mignot

    MultiChoice scraps annual DStv price hike

    20 February 2026
    What Gen Z really thinks about the tech world it inherited - Tinashe Mazodze

    What Gen Z really thinks about the tech world it inherited

    20 February 2026
    Showmax 'can't continue' in its current form

    Showmax ‘can’t continue’ in its current form

    20 February 2026
    Free Market Foundation slams treasury's proposed gambling tax

    Free Market Foundation slams treasury’s proposed gambling tax

    20 February 2026
    © 2009 - 2026 NewsCentral Media
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}