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Keyword Advertising does not Constitute Trademark Infringement
Whether using another's registered trademark in keyword advertising constitutes trademark infringement is a controversial question around the world, but neither the Trademark Act nor the Fair Trade Act explicitly addresses keyword advertising.
In a recent civil case (98-Ming-Shang-Shang-No. 11), the Intellectual Property Court determined that because keyword advertising does not use trademarked terms for marketing purposes, and that users who entered the search terms would not become confused, keyword advertising is not use of trademark, and therefore does not constitute trademark infringement.
Not withstanding this decision, the Fair Trade Commission (the "Commission") decided in Gong-Chu-098133 that a business enterprise's use of keyword advertising may adversely affect the economic interests of other enterprises if the enterprise purchases keyword advertisements that make use of other enterprises' trademarks, names, or other business symbols in order to increase the number of visitors to its own website, and to redirect potential customers to its website. The Commission determined that such use of keyword advertising is in violation of Article 24 of the Fair Trade Act. On appeal, the Executive Yuan upheld the Commission's interpretation of Article 24 in decision Yuan-Tai-0990096196.