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Utah Sees Buyer's Remorse for Keyword Law

After some Utah firms sold the idea of passing a law that might benefit them at the expense of advertisers from out-of-state, the state legislature seems to be thinking it "bought a bill of goods." Utah's legislators are finding the idea of court challenges to their new trademark law worrisome and so are making changes, reports The Salt Lake Tribune.

The change of heart comes after a meeting between lawmakers and representatives from Google, Microsoft, eBay, AOL, Yahoo, 1-800-Contacts and Overstock.com. That led to Utah officials opening up options on the fate of the law, including that of complete repeal.

The law created a new form of electronic mark, the use of which by a competitor of the holder of that mark to trigger an online search ad would have been illegal. 1-800-Contacts and Overstock especially would have been hurt. They carry brand name merchandise at reduced prices and often use those names in their online ads. Restricting their usage could have been detrimental to their business.

The law will reportedly go into effect as planned. The registry that would have compiled the marked terms, though, will be put on hold until the actual strategy for implementation is created.

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