Policy Fugue by Kenneth Corbin (bio) Tracking the loveless marriage of technology and government

Google has loosened its trademark policy for AdWords, the auction-based program where advertisers bid on keywords to place text ads alongside search results. Under the new policy, Google (NASDAQ: GOOG) will allow advertisers to include trademarked names in their text ads, even if the trademark belongs to someone else.

In a blog post detailing the change, Google likens the old policy limiting trademarks to a supermarket only being able to advertise with generic terms like "discount cola" or "snacks for sale."

So this means that an online clothing retailer could include trademarked brand names like "Hugo Boss" or "Perry Ellis" in its text ad.

There are limitations, which Google spells out in its trademark policy. Retailers, for instance, must sell the product corresponding to the trademark, or the component parts relating to it.

The policy change brings Google in line with online competitors Yahoo and Microsoft, who have already adopted what is a standard practice in the offline world.

Google seems confident that it is well within the bounds of the law on this one, but advertisers have raised questions about other, murkier areas of its handling of trademarks...

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