via
CNET:
A court has ruled that a lawsuit over a company purchasing a rival's trademark as a search keyword should go to trial, in what could be the first case to scrutinize the trademark infringement liability of keyword purchasers.
Edina Realty sued rival real estate company TheMLSonline.com, accusing it of false advertising, trademark infringement and trademark dilution. According to the suit, MLS used "Edina Realty" in search terms purchased on Google and Yahoo, in the text of the MLS ads that appeared on the two search sites, and in hidden links and text on the MLS Web site.
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A ruling issued last week by the U.S. District Court in Minnesota said evidence of actual trademark dilution had not been provided in the case but that the case could go to trial because there were disputes on material facts with regard to whether the use of the trademark was causing confusion among consumers.
Trademark