sourced from Stuff.co.nz
by Reuben Schwarz
12 December 2005
Fur is flying after online shoppers keying “ferrit” or “ferret” into Google’s search engine were presented with prominent adverts for Trade Me’s online auction site.
The marketing technique, which has generated controversy and even legal spats when employed overseas, is the first indication Trade Me may be rattled by Ferrit, Telecom’s online shopping mall.
When web surfers googled “ferrit” or “ferret” for a period last week, Trade Me’s website appeared at the top of the results as a sponsored link, shaded in blue.
A surprised Trade Me managing director Sam Morgan said “ferrit” wasn’t in the list of keywords the company asked Google for and says he has contacted Google to have it removed. On Friday the advert had been downgraded to a cheaper sidebar advert.
Mr Morgan justified the still-prominent advert displayed when Ferret was googled, saying Trade Me sold ferrets. “We tend not to pick trademarks and then park against them.”
Trade Me has 23 listings for “ferret” with one live animal for auction.
Telecom hasn’t yet secured Ferrit as a registered trademark, though an application was filed in August. Its application is pending and, if approved, would come into effect retroactively.
Google found itself in hot water in France when it was ordered to pay U200,000 plus costs to fashion firm Louis Vuitton for displaying ads from rivals when people entered “Vuitton” into its search engine.
Google settled a similar case in the US with insurance firm Geico for an undisclosed sum. Other cases are pending.
Earl Gray, intellectual property partner with legal firm Simpson Grierson, believes Telecom could make a case for infringement.
Philips Fox partner Rochelle Hume doesn’t think any case against the auction giant would be very strong.
Telecom appeared to be taking the matter in good humour, regardless.