While I don’t pretend to be a lawyer, I can sure spot an interesting story, especially since there are connections to the franchise industry.
American Airlines is suing Yahoo for alleged trademark infringement. Similar to the lawsuit they filed against Google, AA is alleging that Yahoo unlawfully permits other companies to use their name, “American Airlines”, in paid ad words. The airline’s case against Google ended with a settlement, but the details are confidential.
In basics, AA is claiming consumers are confused by these trigger ad words. Myself and my readers are most likely educated folks, so, I doubt we would click an ad word search term for Delta if we wanted AA, but then again, who knows. Confusion is an interesting term.
Google has been sued by the likes of brands like Geico, and won. So, in this lawsuit between AA and Yahoo, there are no guarantees. It will be interested in see what happens with Yahoo.
This brings up an interesting situation. Competition is so tough in the franchise arena. Ad words are becoming a part of franchise development strategy (even though I don’t see the complete value). Can franchisors create a similar lawsuit?
On the consumer side, there are many examples within our industry where competitors buy each other’s names to draw in new guests. On the franchise sales side, can potential franchisees be confused when using search outlets like Yahoo or Google?
While I have done extensive research on search terms, here is one interesting example I found. If you search for Subway, or Subway franchise, Quizno’s has clearly bought that term (probably paid an arm, and a leg). When the search sends back the results, right there, at the very top, reads: Don’t Buy a Subway, and links to Quizno’s.
Should this be allowed?
You be the judge.
Is this crossing the line, as American Airlines suggests, or is this just part of open competition? Should Subway join AA and go on the suing front?
Personally, I think the majority of lawsuits are BS. Waste of money, time and energy. But, unfortunately, they do exist. They are in place to protect companies and the public against malicious behavior by another company or person. Let’s open this up…