In mid-May Google announced they were lifting their long-imposed ban on trademarked terms in ad copy. This is undeniably huge. Is it good or bad? Now that’s the bigger issue.

Photo via flicker, by net_efekt
The ban was slated to be lifted as of June 15, 2009, but I’m not completely sold that it will remain in place, if Google did indeed follow through on their announcement. Imagine yourself as a company like Apple or Lexus, wouldn’t you file a lawsuit to block others from using your brand name for their profit? There is just too much riding on this for the brands not to fight – trademarks were instituted for a reason. If these likely lawsuits pop up the deadline will have to be pushed back (if the ban is still lifted at all).
The big issue is the cost per click. Obviously if demand for purchasing certain keywords (like Toyota Prius or Lexus IS Convertible) goes up, the price for these terms will too. This could really hurt an already ailing automotive industry if their online advertising budget has to increase to keep up PPC keyword bidding. Great for Google though because this increases their revenue.
As many of you know, the major auto manufacturers affected by this policy change would be Toyota (including Lexus and Scion) and BMW. These brands strictly enforce their trademarks in ad copy (whereas other brands like Ford do not). Right now, to use any of these protected brands or their models in your ad copy the advertiser must have permission from the manufacturer. This stops dealerships who aren’t affiliated with the brand, who likely have the cars in their used inventory, from using the keywords in their ad copy. So instead of advertising their “great selection of used Lexus cars”, they can only talk about their “wide selection of low-mileage vehicles”.
Lifting the trademark ban on Google isn’t a cut and dry, good or bad issue. While keyword costs would increase and manufacturers would lose control over how their brands are represented, there are some winners. Used car dealers or dealers with other brands in their used inventory would finally be able to run a PPC campaign for their specific used inventory.
So, what do you think? Are you for or against Google removing these trademark restrictions?