According to MediaPost.com, Yahoo has settled a lawsuit bought by American Airlines we reported about in October 2008, for selling PPC advertising to competitors which included one of AA trademarks.
The terms of the settlement were not disclosed.
Before settling the American Airlines lawsuit, Yahoo unsuccessfully attempted to have the matter heard in California. Yahoo argued that the airline, which is also an advertiser, was bound by its search marketing contract to litigate all matters with Yahoo in California, but the court ruled against Yahoo on that point.
The question still remains to be decided by most federal jurisdictions whether a search engine company is liable for trademark infringement for selling PPC containing a competitors trademark.
In this case that decision is now for another court on another day
I’d really like to see them make it illegal to bid on others trademarks then all my generic domains would see a rise in value b/c a BUNCH of traffic will be taken off the table for advertisers. 🙂
Plus, IMHO they should not be bidding on each other’s TM’s.