The spat between Google and Louis Vuitton continues, and at the moment it looks to be going in Vuitton’s favour. Despite a ruling back in march that Google had not infringed trademark rights by allowing Adwords users to bid on the Vuitton brand name, the French Supreme Court has decided that Google are liable. Next stop: the Paris Court of Appeals.

What are the potential repercussions of Louis Vuitton’s campaign to have exclusive rights to “Louis Vuitton” as keywords? Google said this back in March:

“We believe that user interest is best served by maximizing the choice of keywords, ensuring relevant and informative advertising for a wide variety of different contexts,”

They’re clearly of the opinion that limiting certain keywords to the use of those who’ve trademarked them could compromise AdWords as a whole:

“Some companies want to limit choice for users by extending trademark law to encompass the use of keywords in online advertising. Ultimately they want to be able to exercise greater control over the information available to users by preventing other companies from advertising”

And they’re confident that their AdWords anti-counterfeit-goods policies are enough to deal with the problem of knock-off goods being advertised as genuine on Google. At the moment, trademark owners can report individual sites for infringing trademarks, and it seems that as far as Google are concerned, that’s enough. This is bolstered by a mid-July update to AdWords policy, extending the prohibition of implying affiliation through deceptive business names.

Since the French Supreme Court’s decision, however, it seems that the argument is going to continue for a while yet.

Louis Vuitton claims the judgement will “ensure greater legal certainty to the benefit of both businesses and consumers operating online”.