I guess since 2004, Google has allowed businesses in the United States and Canada to use their competitors' names in their Google online campaign keyword lists. So, for example, if you're BMW and you want to capture some of Audi's current or potential luxury vehicle market share, simply make "Audi" one of your keywords and then start your bidding. Your BMW Adcopy will show up alongside the organic search results for Audi!
This Google policy apparently doesn't violate any U.S. or Canadien trademark policies, as long as your competitor's trademarked name doesn't show up in your resulting Adcopy. Google recently announced that they will be expanding this policy to more than 200 countries worldwide, with the exception of those countries in the European Union, for example, who are currently ruling on if trademark infringements occur with policies such as this. Google is appealing a loss in France, but is celebrating victories in Germany. As a side note, this policy was put into place in the United Kingdom and Ireland last year.
This may seem somewhat evil on Google's part, but what do they have to lose? As long as there's a Google Search Engine, and it remains popular among the population, people will use it to find information about a particular brand. Unless companies become so upset with Google's policy that they withdraw from their Google campaigns en masse, Google doesn't stand to lose anything with this.
Indeed, they stand to make big $$$ as brands and competitors alike up their max bids for that brand's name. This drives up the first page or first position's price, making Google a lot of money. Eventually, a company on either side of the story may decide it's not worth the money to keep bidding up, and it will be at that point where the bid price will stick.
As this goes worldwide, expect to see Google bring in even more revenues from its Adwords campaigns.
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