TechCentralTechCentral
    Facebook Twitter YouTube LinkedIn
    Facebook Twitter LinkedIn YouTube
    TechCentral TechCentral
    NEWSLETTER
    • News

      Unlawful Eskom strike costing South Africa three stages of load shedding

      1 July 2022

      Striking Eskom workers will face consequences: De Ruyter

      1 July 2022

      The AI tool that has changed my life as a developer

      1 July 2022

      Google.co.za is down and the domain is pending deletion

      1 July 2022

      US files charges over South African bitcoin fraud scheme

      1 July 2022
    • World

      Meta girds for ‘fierce’ headwinds

      1 July 2022

      Graphics card prices plummet as crypto demand dries up

      30 June 2022

      Bitcoin just had its worst quarter in a decade

      30 June 2022

      Samsung beats TSMC to 3nm chip production

      30 June 2022

      Napster plots crypto comeback

      29 June 2022
    • In-depth

      The NFT party is over

      30 June 2022

      The great crypto crash: the fallout, and what happens next

      22 June 2022

      Goodbye, Internet Explorer – you really won’t be missed

      19 June 2022

      Oracle’s database dominance threatened by rise of cloud-first rivals

      13 June 2022

      Everything Apple announced at WWDC – in less than 500 words

      7 June 2022
    • Podcasts

      How your organisation can triage its information security risk

      22 June 2022

      Everything PC S01E06 – ‘Apple Silicon’

      15 June 2022

      The youth might just save us

      15 June 2022

      Everything PC S01E05 – ‘Nvidia: The Green Goblin’

      8 June 2022

      Everything PC S01E04 – ‘The story of Intel – part 2’

      1 June 2022
    • Opinion

      Has South Africa’s advertising industry lost its way?

      21 June 2022

      Rob Lith: What Icasa’s spectrum auction means for SA companies

      13 June 2022

      A proposed solution to crypto’s stablecoin problem

      19 May 2022

      From spectrum to roads, why fixing SA’s problems is an uphill battle

      19 April 2022

      How AI is being deployed in the fight against cybercriminals

      8 April 2022
    • Company Hubs
      • 1-grid
      • Altron Document Solutions
      • Amplitude
      • Atvance Intellect
      • Axiz
      • BOATech
      • CallMiner
      • Digital Generation
      • E4
      • ESET
      • Euphoria Telecom
      • IBM
      • Kyocera Document Solutions
      • Microsoft
      • Nutanix
      • One Trust
      • Pinnacle
      • Skybox Security
      • SkyWire
      • Tarsus on Demand
      • Videri Digital
      • Zendesk
    • Sections
      • Banking
      • Broadcasting and Media
      • Cloud computing
      • Consumer electronics
      • Cryptocurrencies
      • Education and skills
      • Energy
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Motoring and transport
      • Public sector
      • Science
      • Social media
      • Talent and leadership
      • Telecoms
    • Advertise
    TechCentralTechCentral
    Home»News»Judgment in SA AdWords battle

    Judgment in SA AdWords battle

    News By Agency Staff30 May 2016
    Facebook Twitter LinkedIn WhatsApp Telegram Email

    gavel-640

    Perimeter security barrier company Cochrane Steel has failed in its bid to overturn a high court judgment on South Africa’s first ever Google AdWords case.

    In August 2014, Cochrane Steel launched a final interdict at the high court in Johannesburg to try stop its rival M-Systems from bidding on the “ClearVu” search keyword in Google AdWords.

    ClearVu is a high-security fencing system that is sold in South Africa by Cochrane Steel. Meanwhile, Google AdWords lets business owners bid on words for text adverts that appear alongside searches for certain keywords.

    At the time, the high court heard that M-Systems did not use the “ClearVu” term directly in its ad but rather as a hidden keyword.

    After hearing the case, judge CH Nicholls ruled in October 2014 that M-Systems was not guilty of passing off the ClearVu brand by bidding on “ClearVu” keyword.

    Nicholls, at the time, further found that M-Systems’ use of keyword advertising did not cause confusion among Internet users. Nicholls also resorted to interpretations of common law because Cochrane Steel’s bid to register the “ClearVu” brand in South Africa had not been completed yet.

    Cochrane Steel then moved to appeal the ruling at the supreme court.

    But the supreme court of appeal upheld the high court judgment on Friday last week.

    “It follows that the appeal must fail and in the result it is accordingly dismissed with costs,” the judgment said.

    Like the high court, the appeals court found that M-Systems’ use of keyword advertising in terms of the ClearVu brand does not cause confusion among Web users.

    “If the advertisement contains no reference to the appellant (Cochrane Steel) the consumer ought reasonably to conclude that the result is not related to the appellant or its products or services,” the court found.

    “But even if the consumer went one step further and clicked on M-Systems’ website, its branding would have left the consumer in no reasonable doubt as to the identity of the trader whose services were on offer.

    “It is thus unsurprising that the appellant has been unable to adduce any evidence of actual confusion… I do not think the appellant has proved its likelihood,” the judgment said.

    Another key finding by the appeals court was that M-Systems’ use of the “ClearVu” keyword in Google AdWords did not constitute unlawful competition.

    The aim of Internet advertising using keywords is “in general, to offer to Internet users alternatives to the goods or services of trade mark proprietors”.

    Because Cochrane Steel has to register ClearVu as a trademark, the court said “the use by one trader of the unregistered trademark or trade name of another is not unlawful under the common law except to the extent that that use gives rise to passing off”.

    “It follows that the attempt by the appellant to ground a cause of action based on unlawful competition in these circumstances is ill conceived.”

    M-Systems’ legal representative, Darren Olivier of Adams & Adams, said on Monday that the latest ruling on the matter brings South Africa in line with similar court decisions in New Zealand, the UK, Canada and Australia.

    “It creates clarity that keyword bidding on competitor trademarks on its own (without more) is not passing off and unlikely to be trademark infringement thus enabling alternative products to be advertised during Internet searches,” Olivier said.

    “It also means that search engines enabling companies locally and abroad to target South African internet users do not need to alter their keyword advertising models to comply with local laws,” he said.

    However, Olivier said that “Internet advertisers still need to be cautious to avoid any likelihood of confusion and for it to be clear that the sponsored link or advert is interpreted by the internet user for what it is — an advert.”

    Olivier further said that advertisements and their associated link should also not themselves be unlawful by, for instance, using a registered trademark.

    Cochrane Steel’s legal team could not be reached for comment about the supreme court of appeal’s ruling at the time of writing.

    Fin24

    AdWords ClearVu Cochrane Steel Google Google AdWords M-Systems
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email
    Previous ArticleGarmin Forerunner 630 review: run wild
    Next Article Thieves are walking off with Telkom’s network

    Related Posts

    Unlawful Eskom strike costing South Africa three stages of load shedding

    1 July 2022

    Striking Eskom workers will face consequences: De Ruyter

    1 July 2022

    The AI tool that has changed my life as a developer

    1 July 2022
    Add A Comment

    Comments are closed.

    Promoted

    Billetterie simplifies interactions between law firms and clients

    30 June 2022

    Think herding cats is tricky? Try herding a cloud

    29 June 2022

    How your business can help hybrid workers effectively

    28 June 2022
    Opinion

    Has South Africa’s advertising industry lost its way?

    21 June 2022

    Rob Lith: What Icasa’s spectrum auction means for SA companies

    13 June 2022

    A proposed solution to crypto’s stablecoin problem

    19 May 2022

    Subscribe to Updates

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

    © 2009 - 2022 NewsCentral Media

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