Louis Vuitton Sues Google Over Trademark

By: Laurence Frost, AP Business Writer (AP) Google and its French subsidiary are facing another trademark challenge in the wake of a landmark ruling that could force the popular Internet search engine to change how it sells advertising.

The dispute is over Google's pay-for-placement service, in which the search engine returns links to companies and organizations that have paid to be associated with certain keywords -- even if they are trademarks belonging to somebody else.

For example, Google users typing "Bourse des Vols" or "Bourse des Voyages" -- trademarks for two French travel firms -- were offered links to rival companies including low-cost airline EasyJet.

Lawyers for Google and Louis Vuitton SA, a maker of handbags, shoes and other luxury goods, are to attend a preliminary hearing in Paris on Nov. 3. Vuitton filed a lawsuit in August, complaining that Google's practice amounted to trademark infringement.

Contacted Friday, neither company would comment on the lawsuit, the third to be filed in French courts against Google's advertising services.

Earlier this month, a court in the Paris suburb of Nanterre called into question the legality of the search system at the heart of Google's business model.

The court said that when searches are done on registered trademarks, Google should "find the means to block advertisements by third parties who have no right to these trademarks."

The two travel firms -- Viaticum and Luteciel -- together won $89,000 in damages. Google spokeswoman Debbie Frost said the company would appeal that decision and had no comment on the Vuitton lawsuit.

Google, one of the best-known Internet brands, faces a likely wave of litigation from other companies keen to capitalize on the ruling.

Telephone payments firm Rentabiliweb has sued Google, accusing it of selling Rentabiliweb's trademark as a keyword to rival company Tel 4 Money.

An official at France's Software Protection Agency, which gathers evidence for court hearings on piracy and trademark infringement, said several major companies are preparing cases against Google. The official spoke on condition of anonymity.