When is use of competitor trademarks considered trademark in infringement in PPC ads?

In a recent case in Texas, the judge found that trademark infringement claims can arise out of use of third-party trademarks in PPC ads if the following specific key elements are satisfied and properly plead:

• there was purchase of a competitor’s trademark in PPC advertising;

• the ad diverted users from the trademark owner’s goods/services offerings; and

• consumers were misled, confused, and/or misdirected from the trademark owner’s goods/services offerings they were seeking.

Read about the key elements to plead in a PPC ad trademark infringement case.