Friday, October 19, 2007 

Trademark Infringement Issues For Pay-per-Click (PPC) Advertisers

Yahoo has just announced they will no longer allow PPC advertisers to advertise or bid on trademarked terms.

Could this be a trend of things to come from the other major search players?

MSNs new adCenter (still in beta) states you are not allowed to infringe trademarks within their editorial guidelines (see policy below).

However, Google still maintains a strong stance in allowing advertisers to bid on trademarked search terms as long as the trademarked term is not used within the advertisers ad-copy.

Numbers to Consider

Next to click fraud, trademark violations are the second largest concern to Pay-Per-Click (PPC) advertising. Out of the total number of searches online, 20% are trademark searches. Meaning, company owned trademarks such as Pontiac, account for 20% of all search traffic. While 1 in 5 searches for trademark terms may seem high, most conversions do not originate from trademarked terms. A study by comScore and Yahoo Search Marketing (Overture) found most buyers do not search by manufacturer or product name. Rather, buyers use broad search terms that do not include a manufacturers name. Broad search terms account for 70% of total searches and 60% of total conversions.

Search Engines Policy on PPC Trademark Bidding

Yahoo on Trademarks:

"On March 1, 2006, Yahoo! Search Marketing will modify its editorial guidelines regarding the use of keywords containing trademarks. Previously, we allowed competitive advertising by allowing advertisers to bid on third-party trademarks if those advertisers offered detailed comparative information about the trademark owners' products or services in comparison to the competitive products and services that were offered or promoted on the advertisers' site.

In order to more easily deliver quality user experiences when users search on terms that are trademarks, Yahoo! Search Marketing has determined that we will no longer allow bidding on keywords containing competitor trademarks."

MSN AdCenter on Trademarks

Microsoft requires all advertisers to agree that they will not bid on keywords, or use in the text of their advertisements, any word whose use would infringe the trademark of any third party or would otherwise be unlawful or in violation of the rights of any third party.

Google Adwords on Trademarks:

Google takes allegations of trademark infringement very seriously and, as a courtesy, we're happy to investigate matters raised by trademark owners. Also, our Terms and Conditions with advertisers prohibit intellectual property infringement by advertisers and make it clear that advertisers are responsible for the keywords they choose to generate advertisements and the text that they choose to use in those advertisements.

Solution or More Problems

With all Engines moving toward a TM standard, it would have many benefits to both advertisers and searchers. This standard would be good for marketers who would have to be more creative in their copy creation creating increased demand for qualified marketers which would translate into higher fees. Search Engines hosting the ads would maintain revenue levels, but online public relations firms may lose as they would not be required to police search engines for their clients with trademarks. Lastly, the mark owner would continue to be protected and user experience would not be affected.

Case Study:

Im currently working with an AdWords client in a circumstance where their competitors are bidding on their trademarked search terms. Aside from the constant policing and reporting for trademark violations used in the ads themselves, adspend to secure top positions for their ads has skyrocketed from an initial $2.00 per click to $15.00 per click. Additionally, monthly spend has increased from $1,200 to nearly $30,000.

I have to go back to my client with an estimated budget of $500,000 for the rest of this year to control the space for their own branded trademarked term. I am reluctant to do that as it doesnt make sense with the announcement from Yahoo on their new trademark policy. Given the level of aggression by the competitors and the extortionate cost now been borne by my client there is only one solution and that is to stop all advertisers from bidding on the terms. In my opinion, it is simply not right that a business owner has to spend $500,000+ to buy their own branded term that has already cost them millions of dollars to build. This is $500,000+ in revenue for Google which is being generated by a policy that is beyond elementary business terms. Yahoo and MSN have recognized the injustice of this policy and have taken steps to change it.

If we cannot treat this policy on a case by case basis, then I have no alternative than to advise my client that we cannot help them any further and their only option is to resort to legal action against Google.

Google also advises that you take the matter up with individual advertisers which in many cases are impossible with private registrations and foreign companies. You could add to your high costs dramatically to have to send cease desists to all infringers. Many will ignore you.

The classic bait and switch does not seem to apply to the Internet. Many companies are okay with their terms being bought for comparison shopping and by re-sellers. The solution here is for those companies to give permission to Google to allow their re-sellers to purchase the name. With the strength and sophistication of Googles technology how difficult can this be? I doubt it is any more cumbersome than filtering search results for China.

Your Defense Against Trademark Violations

Website companies where the majority of their revenue is generated through online sales depend heavily on search engines to generate traffic to their website. In order to defend against trademark infringements you will need to conduct search audits at least once every month. You not only need to look over organic search results, but also paid search results or PPC contextual ads. You should look through the top 30 results of the search listings.

For organic search engine results you should look at both the questionable result and the site displayed in the result. When looking over the possible violators site, dont just look over the visible content on the site; look over the code as well to uncover hidden text, image alt tags and keyword meta tags that may include your trademarked names.

Then document your findings. For search engine results and PPC results use a screen capture of the page displaying the mark infringement. For mark infringements that are visible on a website, save the entire pages code as a .txt file.

What about if you are you seeing an infringement in organic search results, but when you click on the page, there is no infringement? They may be using a cloaked page which includes your trademark. To check this out you will need to view the search engines cached page on file. Make sure to save a copy of this code as well.

You will need to document your findings properly by dating the violation as well as the site owners complete contact information. Use http://www.dnsstuff.com to get the whois information for the site. Once you have all of this documented you will need to send your findings to the appropriate search engine.

You may also want to take the legal route, in which case you should keep a record of all your documentation to present to your legal counsel.

The best way to gather evidence is to hire a third party to collect evidence against the infringer of your trademark or copyrighted material. Recently at Search Engine Strategies in New York City during February of 2006, Deborah Wilcox, Partner of Baker & Hostetler LLP who specializes in trademark and copyright areas of law said, Use a third party to make print outs and audit the search results. If the case goes to court you will need hard evidence for the judge.

Contact the Search Engines

You can also contact the search engines directly if you believe an advertiser is infringing on your trademark. The respective search engine contact information is below.

Google
Google Inc.
Attn: Google AdWords, Trademark Complaints
2400 Bayshore Parkway
Mountain View, CA 94043

Yahoo! Search Marketing
Formerly: Overture Services, Inc.
Attn: Business & Legal Affairs - Trademarks
74 N. Pasadena Ave., 3rd Floor
Pasadena, California 91103
Fax: 626 685-5601

Microsoft Corporation
Attn: MSN Search Trademark Concerns
One Microsoft Way
Redmond, WA 98052
USA

Trademark Infringement Resources
International Trademark Association www.inta.org
American Patent & Trademark Law Center www.patentpending.com
Internet patent, copyright, trademark, and legal issues www.bitlaw.com
Trademarks on the Internet www.bitlaw.com/trademark/internet.html

Warren Pattison is the Director of Search for Elixir Systems, a full service search engine marketing company specializing in organic search engine optimization services, online reputation management and paid search or PPC management. For more information visit http://www.elixirsystems.com/services/online-reputation-management.php

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How to Ecommerce

Ecommerce is becoming one of the primary ways for companies to do business because so many are home based or dont carry any items directly. Ecommerce makes it possible for people to sell stock without having it in their possession--they simply take orders and have the items shipped from manufacturers or warehouses. However, this wide availability of products makes it even more important for the online business to be a targeted ecommerce website.

Targeted ecommerce is a matter of carrying the right products or services, and all of them possible, for exactly the right kind of client or customer. It also involves making sure your website revolves around that customer and that your content and art work appeals to them. Otherwise they will simply click off and go elsewhere.

For instance, lets say you are building a website that sells childrens clothing. If you have children yourself, you know how difficult it can be to find clothes for the occasional child who is overweight. If you specialize in that kind of clothing, you are finding a specialized niche. Niches are critical to targeted ecommerce.

Another important aspect of targeted ecommerce is keeping in touch with your customers. Going back to the clothing site for overweight children, perhaps there is a new line coming out that many parents would be interested in and you want to carry it. Send a survey and make them feel part of the progress of your business--this will help develop loyalty. Then notify them when you begin carrying the line of clothing and you will see your sales jump.

Do you want to learn more about how I do it? I have just completed my brand new guide to article marketing success, Your Article Writing and Promotion Guide

Download it free here: Secrets of Article Promotion

Sean Mize is a full time internet marketer who has written over 1574 articles in print and 11 published ebooks.

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Japanese "Kaizen" Principles for Blogging

In the world of Japanese management style, Kaizen means change for the better or improvement. Kaizen refers to the workplace strategy calls for never-ending efforts for improvement involving everyone in the organization managers and workers alike. Generally, a Japanese management Kaizen team has two major components - maintenance and improvement. Each component has its specific functions. The maintenance function is to maintain current technological, managerial, and operating standards while the improvement function is aimed at improving current standards. These same principles can be applied to blogging. Here are ways you can apply Kaizen principles to blogging.

Lets analyze Kaizen for blogging in terms of the Management and Improvement functions.

1. Management

For Kaizen, normally you should concentrate at improving the process rather than at achieving certain results. It is also a process that, when done correctly, it helps to eliminate overly hard work (both mental and physical), and teaches people on how to learn to spot and eliminate wasteful processes. A good blogger should possess the following management skills:

  • Time Management
  • Time management helps you to work on the most worthy tasks and to get through them quickly. Time management is not some obscure notion but an important blogging strategy that can be followed to gather a huge amount of success. Many bloggers have failed because they are inefficient and time management can increase that efficiently. Knowing how to manage your time effectively will help you achieve the goals you want with the least amount of effort.

  • Maximize Blogging Effectiveness
  • Every blogger puts a lot of effort in creating a blog and then posting content regularly but then its even more important that the content is read by many people.

  • Keywords
  • Always try to build an understanding of the keywords used in your blog. You should also understand how your blogs unique characteristics and how your blog can fit in with the current concerns of your audience. This understanding will help you to develop content and also target conversations.

    2. Improvement

    Under the improvement function, a blogger should work continuously towards revising the current standards, once they have been mastered, and establishing higher ones. Improvement can be broken down between innovation and Kaizen. Innovation involves a drastic improvement in the existing process and requires large investments. Kaizen signifies small improvements as a result of coordinated continuous efforts. Areas that require constant improvement for a blog are:

  • Search Engine Optimization (SEO)
  • Search engine optimization (SEO) is the process of improving the volume and quality of traffic to a web site from search engines via search results. A blog that is ranked higher in a search engine result page, will have more searchers visit the blog. A good blogger should always pay attention to the latest SEO techniques in order to fully optimize ones blog for search engines. A high search engine ranking is also essential for better blog revenues.

  • Writing Skills
  • Blogging is about writing. In order for you to publicize your blog content, you should always strive to improve your writing skills. While most people think of writers as infinitely talented, living in some rarified air denied to the rest of us, writing is a learned skill. While some people are indeed born more talented with the written word than others, most people can become better writers simply through practice. Blogging is as good a practice field as any.

  • Internet Marketing
  • Your blog does not serve a good function if it is not marketed properly. Without the proper marketing, you may end up having limited number of readers. You should learn some basic marketing tips for your blog. Some of the basic marketing techniques are like joining a blog network e.g., mybloglog, 9rules etc, submit your blog to directories, have a contest, create links and trackbacks and many more.

    True to the principle of Kaizen, you should always strive for small improvements for your blog. A continual small improvements and standardization yields large results in a form of compound productivity improvement.

    Kuan Hoong is currently residing in Nagoya Japan. He is passionate about eBay. He also blogs regularly on topics related to SEO and Internet Marketing. You can visit his blog at kuanhoong dot com

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