Before we go on it's probably worth explaining the issue at stake. If you were to conduct a search in MSN for the term 'Nike shoe', you will find a host of results displayed for resellers using Nike trademark keyterms to promote their goods. Resellers bid on these terms on a cost-per-click basis, so when the user clicks on these results, Overture and Espotting get a piece of the pie. The minimum bid is currently 10p, but many resellers will pay much more for a No.1 position.
Overture and Espotting claim they have strict policies on who is allowed to bid for brand keywords, to prevent resellers receiving traffic on the strength of the Nike brand. However, because many of these sites are authorised resellers, it's not that simple.
Some brand giants don't mind resellers and agents using their keywords and are happy to leave their online promotion to their affiliates. However some do and it's here that things get complicated. Should a brand manager complain that a number of unauthorised resellers are bidding on their keywords, Overture and Espotting claim they will act immediately, removing the offending party from their listings. The networks believe however the policing of affiliates is not their concern and it's up to the brand owner to monitor any instances of passing off.
While the majority of media buying agencies are content with the networks' current stance, many believe they could do more to stop trademark infringement. While many marketing managers may not yet consider bidding on brand terms the greatest threat to their brand, the situation is likely to receive greater attention as companies wake up to the dangers of online brand abuse.
Based on an article by C. Dillabough New Media Age (15 May 2003). To subscribe to New Media Age visit www.newmediazero.com.
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