Saturday, May 16, 2009

New Action suit against Google

A class-action suit against Google in federal court in Texas has been filed by Audrey Spangenberg, an Owner of a small software company. Her reason was quite acceptable and increases concerns over Google’s search algorithms.

Audrey Googled her company name and was shocked to see all her competitors in the advertising section of the search page. Though her company came as the top result her potential competitors were placed above her results as advertisements.

Google’s algorithm places the ads relevant to the user’s search keyword. But Audrey suggest that her customers who looks for her company may turn to her competitors by this stupid algorithm of Google. Her action suit states that Google had infringed on its trademark and challenged Google’s policies on behalf of all trademark owners in the state. Legal experts said it was the first class-action suit against Google over the issue.

But Google’s acceptance of such competitive uses of trademarks has irked many other companies, including the likes of American Airlines and Geico, which have filed suits against Google and settled them. Many brand owners say the practice abuses their brands, confuses customers and increases their cost of doing business.

Experts view that Google may place their customer ads above the search results which is more obvious for a business corporations. This act of Google increases its customers and in turn earns them more profits.

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