Google is off the hook in Europe

EUROPE'S TOP COURT has decided that the search engine Google had done no evil when it flogged names such as Louis Vuitton in its Internet keyword advertising service.

Louis Vuitton complained to the European Court that Google was peddling fake luxury goods using its advertising service. The French luxury brand maker also claimed partial victory after the court warned Google it could be brought to book if it did not clamp down quickly on trade in fake luxury goods such as designer handbags.

Louis Vuitton argued that trademarks were being violated by the US Internet giant through Google's Adwords system.

However the EU Court of Justice chucked that concept out of court, saying that while Google had not infringed trademark law it could be held responsible if "having obtained knowledge of the unlawful nature" of advertiser activities, "it failed to act expeditiously to remove or to disable access" to that advertising.

Louis Vuitton vice-president Pierre Gode told AFP that the ruling amounted to "fantastic progress".

The plaintiff companies were hoping to avoid having to pursue individual rogue online traders every time they appeared. Now thanks to the court ruling Louis Vuitton said it will work with Google to draw up new guidelines for vetting web advertising.

Google says it will "study" the ruling's full implications. This could mean that before Google accepts cash for an advert it might have to ensure that it's legit.

The French court that heard the original case, the Cour de Cassation, had asked the European Union to rule on the matter. But the Luxembourg court effectively said that subsequent disputes are "for the national court to assess, on a case-by-case basis." µ