The Supreme Court of Argentina has overturned a ruling in the case “Organización Veraz S.A. v. Open Discovery S.A.” regarding the use of trademarks as keywords in online advertising. The decision establishes that the use of registered trademarks in sponsored link systems, such as Google Ads (formerly Adwords), does not constitute trademark infringement or unfair competition per se unless it leads to consumer confusion or an improper association with the trademark owner.
The case involved Open Discovery S.A.’s use of the trademarks “Veraz” and “Organización Veraz” as keywords in Google Ads to promote services similar to those of the plaintiff. The Federal Civil and Commercial Chamber had deemed this practice a violation of trademark law and an act of unfair competition, imposing a compensation of over three million pesos. However, the Supreme Court ruled that for infringement to exist, it must be proven that the use of the trademark causes consumer confusion or an improper association with the trademark owner.
This decision sets an important precedent for digital advertising and trademark protection, aligning with international standards that consider the use of third-party trademarks in online advertising lawful as long as it does not mislead consumers or unfairly exploit their reputation.
You can read the full ruling in the following LINK