Position Squatting: Non-Negligible Economic Damage
Position squatting is just one on a long list of cybersquatting practices. What is it? It’s buying the name of a known brand as keywords in order to optimize one’s own visibility. The goal is to attract visitors to one’s own website by profiting from this brand’s visibility. The Cobrason vs. Google case is an excellent example of the problems this practice can create.
Cobrason vs. Google, Home Ciné Solutions
The lawsuit sparked a number of reactions regarding the estimation of economic damage caused.
Here are the facts: In 2005, Home Ciné Solutions placed a bid for advertising in Google AdWords using the keyword “Cobrason.” Soon after, Cobrason accused both the search engine and the Hi-Fi electronics maker of unfair business practices and estimated its financial loss due to the unfair business practices at around €50,000. This figure was calculated based on the number of Internet users who clicked on (and made a purchase at) the Home Ciné Solutions website as well as the average order price. The average Cobrason customer spent €700 on a purchase (this figure has been confirmed by the company’s auditor).
The French Commercial Court asserts that Home Ciné Solutions’ behavior caused potential customers to be misdirected to a competitor’s website, and that it was an abuse of Cobrason’s investment. The accused companies have been ordered to pay Cobrason €50,000 in estimated losses.
Google commits the same offense
This is likely not the last squatting lawsuit that Google will lose, as similar cases have already taken place across the world for brands such as Bourse de Vols, Citadines, Louis Vuitton, etc.
Sources:
Actu.abondance.com
domainesinfo.fr
sam-mag.com
legalis.net
Le petit Musée des Marques
Image source: Flickr
Adapted by: Jessica Hartstein
Tags: position squatting
