(Reuters) - Google Inc (GOOG.O) is lifting restrictions on the use of trademarked terms in its US online advertising system, a move that could increase friction between the Internet giant and brand owners.
The new policy will allow businesses to place trademarked terms directly in the copy of text advertisements that run in the US starting next month, the company announced in a blog post on Thursday.
The move, which Google said will improve the quality of its advertisements, comes as advertisers have begun bidding less money for the individual search terms that their ads appear alongside and as Google's revenue growth slows in the dismal economic climate.
Until now, Google has forbidden companies from placing trademarked terms in their advertising copy unless they owned the trademark or had explicit permission from the trademark owners.
That policy was the equivalent of a supermarket promotion in a Sunday newspaper that only listed generic products like "discount cola" instead of the actual products for sale, Google said in its blog post on Thursday.
The new policy will allow resellers and informational Web sites to use trademarked terms in their copy in certain situations without seeking permission from the trademark owners.
The move represents the second recent loosening of Google's policies on trademark use. Earlier this month, Google said it would allow companies in 190 countries outside the US to bid on trademarked keywords that act as the triggers for their own advertisements.
Google is also facing new legal challenges from trademark owners.
On Monday, Firepond, a Texas software company, filed a trademark infringement suit against Google seeking class action status for all Texas trademark owners.
Brand owners have historically had serious concerns about Google's policy with regards to trademarks, said Eric Goldman, Associate Professor of Law at Santa Clara University School of Law.
Google's latest policy change is "kind of like pouring gasoline on the fire," he said.
The change may help consumers better understand sponsored search results, by allowing the advertiser to reference trademarks in their marketing pitches, Goldman said. But he predicted that the change could spark more legal challenges.
Google Senior Trademark Counsel Terri Chen acknowledged some people might be unhappy with the change, but she said she believed the ads would be well-received overall.
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Thursday, 14 May 2009
Rio Tinto says committed to Chinalco tie-up
(Reuters) - Miner Rio Tinto (RIO.AX) remains committed to a planned $19.5 billion tie-up with Chinese metals firm Chinalco, it said, responding to talk that the deal may be revised to let more shareholders take part in a rights issue.
The latest endorsement of Chinalco, already Rio's (RIO.L) largest shareholder, also comes amid speculation the Australian government could demand revisions, or kill the deal under foreign investment guidelines because Chinalco is state-owned.
Rio Tinto shares were up 7 percent at A$61.66 on Friday, recouping much of a previous heavy slide on market talk it might renegotiate the most controversial part of the deal -- a $7.2 billion issue of convertible bonds to Chinalco.
Speculation had focused on whether Rio would tweak the bonds issue to make it available to all Rio shareholders, not just Chinalco, or on whether the deal could be scrapped and another strategic investor brought in, perhaps rival miner BHP Billiton (BHP.AX) (BLT.L).
"The company remains committed to delivering this strategic partnership," Rio Tinto said in response to a query from the Australian stock market over the movements in its share price.
The deal as it stands would double Chinalco's Rio stake to 19 percent.
The Australian Financial Review newspaper said on Friday Chinalco would consider changing the terms of the convertible bonds, but was adamant the other major element of the tie-up -- $12.3 billion in direct investments in key Rio mining assets -- should remain as agreed in February.
Citing no sources, the business daily said Rio Tinto's director of strategy, Doug Ritchie, was believed to have visited Chinalco officials last week to discuss investors' opposition to the deal and possibly to revise the terms of the bond issue.
Chinalco President Wang Wenfu was believed to be pragmatic over the price of the notes, the newspaper added.
"Anyone who's underweight in Rio will obviously want a massive dilutive rights issue, because it actually helps them," said a fund manager in Australia who owns shares in Rio and BHP and who did not want to be named.
"Perhaps then, you can get into Rio at a much lower price. But if you're overweight Rio, then having a highly dilutive rights issue is just nuts," the manager said.
Read more here
The latest endorsement of Chinalco, already Rio's (RIO.L) largest shareholder, also comes amid speculation the Australian government could demand revisions, or kill the deal under foreign investment guidelines because Chinalco is state-owned.
Rio Tinto shares were up 7 percent at A$61.66 on Friday, recouping much of a previous heavy slide on market talk it might renegotiate the most controversial part of the deal -- a $7.2 billion issue of convertible bonds to Chinalco.
Speculation had focused on whether Rio would tweak the bonds issue to make it available to all Rio shareholders, not just Chinalco, or on whether the deal could be scrapped and another strategic investor brought in, perhaps rival miner BHP Billiton (BHP.AX) (BLT.L).
"The company remains committed to delivering this strategic partnership," Rio Tinto said in response to a query from the Australian stock market over the movements in its share price.
The deal as it stands would double Chinalco's Rio stake to 19 percent.
The Australian Financial Review newspaper said on Friday Chinalco would consider changing the terms of the convertible bonds, but was adamant the other major element of the tie-up -- $12.3 billion in direct investments in key Rio mining assets -- should remain as agreed in February.
Citing no sources, the business daily said Rio Tinto's director of strategy, Doug Ritchie, was believed to have visited Chinalco officials last week to discuss investors' opposition to the deal and possibly to revise the terms of the bond issue.
Chinalco President Wang Wenfu was believed to be pragmatic over the price of the notes, the newspaper added.
"Anyone who's underweight in Rio will obviously want a massive dilutive rights issue, because it actually helps them," said a fund manager in Australia who owns shares in Rio and BHP and who did not want to be named.
"Perhaps then, you can get into Rio at a much lower price. But if you're overweight Rio, then having a highly dilutive rights issue is just nuts," the manager said.
Read more here
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