GOOGLE WINS EU RULING [=decision made by a judge] IN FAKE LUXURY GOODS CASE

Google Inc. won a key EU court ruling Tuesday that says it did not violate luxury goods trademarks
[=registered symbols identifying a company] by allowing counterfeiters to buy brand names as
advertising links — but could face legal action if it doesn’t pull [=remove] problem ads swiftly.

The world’s most used search engine won some legal protection against future cases after the EU’s
highest legal authority said it could not be held liable [=legally responsible] for advertisers’ requests to
place ads — as long as it removes them when it is told the ad misuses a trademark.

The company is not completely in the clear, however. The European Court of Justice said the French
companies who took the case — headed by LVMH Moet Hennessy Louis Vuitton — could still claim
[=ask] for compensation in a French court if it rules that trademark misuse damages their brands.

The EU court left future decisions on Google’s liability to national courts, saying they should examine
whether the search engine’s role in accepting ads directly on its web site is “neutral ... pointing to a lack
of knowledge of, or control over, the data which it stores.”

“If it proves to be the case that it has not played an active role, that service provider cannot be held liable
for the data which it has stored at the request of an advertiser unless ... it failed to act expeditiously
[=quickly and efficiently] to remove or to disable access to the data,” a court statement said.

LVMH, the company behind Marc Jacobs bags, Dior perfumes and TAG Heuer watches — said the
ruling showed that Google could not fully escape its responsibility. It said Google could face legal action
if it knowingly sells keywords that infringe [= go against a law or rule] a trademark.

“This decision represents a critical step towards the clarification of the rules governing online advertising,
of which LVMH is one of the foremost clients,” said the company’s vice president Pierre Gode. “We are
committed to working with all parties, including Google, to eradicate illicit online practices.”

Google’s senior legal counsel [=person who gives legal advice to a company] Harjinder S. Obhi said
some companies were trying to extend trademark law to cover keywords bought by online advertisers.
“This case is not about us arguing for a right to advertise counterfeit goods,” he said. “Trademark rights
are not absolute,” he said. “Ultimately they want to be able to exercise greater control over the
information available to users.”

He said Google’s policies forbid advertising of counterfeit goods, describing them as “a bad user
experience,” and that the company works with brand owners to identify and deal with counterfeiters.
Google makes most of its revenue [=income] by selling advertising triggered [=activated] by keywords.
When someone searches for “vintage cars” or visits a partner site that mentions those words, advertising
for a vintage car dealer may appear to the side. In some cases, a keyword that is a company’s brand name
can trigger an ad for a competitor or even counterfeiters.

The French companies complain that Google broke the law by accepting ads using a brand name without
permission. They fear that would allow counterfeiters to buy a keyword such as “Louis Vuitton” and use
it to sell fake bags.