San Francisco, Jan 15: In a decision that could cast scrutiny over Internet search engines and online advertisers, a federal appeals court has reinstated a trademark infringement lawsuit by Playboy Enterprises Inc. against Netscape Communications Inc. A three-judge panel of the 9th US Circuit Court of Appeals yesterday said the Chicago-based adult entertainment company could proceed with its case against the mountain view-based subsidiary of America Online Inc., which used words such as "playboy" and "playmate" in online search engines to link to advertisements for adult-themed rivals.
Playboy argued the links tarnished and diluted its brand name by associating its trademarks with inferior products.
The case, originally filed in Los Angeles in 1999, could determine the legal limits of "keying". The online advertising practice allows advertisers to target individuals who are most likely interested in specific types of products.
"Playboy" and "playmate" were included in a list of about 400 words that Netscape's search engine used to identify people who were likely interested in buying adult-themed merchandise.
Playboy is suing Netscape for financial damages "well into the seven figures" and hopes the case will set a precedent, said Barry G Felder, who represents playboy for New York-based brown Raysman Millstein Felder & Steiner LLP.