CNET: Trademarks cast shadow on paid search

After eBay's drastic action of forbidding search engine advertisers from using its trademarks (and, seemingly, other commonly-used words) in advertising their eBay-related products, other brands are now wondering what they should do about allowing affiliates to use their names in contextual ads.

CNET covers the story of Netflix's evolution from encouraging affiliate advertisers to sell its wares through search engines to pondering whether or not it should more tightly control the use of its name. Brands do not seem to be honestly worried about brand dilution so much as they are intrigued by the capabilities trademark law gives them in making affiliates do what they want in exchange for the use of the trademarks.

That this issue hasn't come up frequently before is less a function that the problem didn't exist - anyone can see hundreds of trademark uses in the average newspaper's classified pages - and more a function that online markets and search directories allow for companies to closely track trademark use.