Last year we reported on the trademark infringement between Interflora and M&S. Now the European Court Of Justice has ruled that Adwords bidding does not constitute trademark infringement.
This means that advertisers can continue to bid on competitor trademarks. The one caveat was that it will be ruled infringement where the trademark is adversely affected – simply presenting yourself as a competitor will not be a problem.
This ruling is encouraging in that competition is allowed to thrive however what can be ruled as damaging to a trademark remains a grey area.
The case is not yet over for M&S as the European Court ruled local courts can deal with the issue of negative effects on trademarks so the case is being continued in the UK.