Deregulating Relevancy
(August 2003)
Eric Goldman
Marquette University Law School
eric.goldman@marquette.edu
http://eric_goldman.tripod.com
Introductory Words About TMs
- TMs are product source identifiers
- Goals of TM law:
- Reduce consumer search costs
- Protect producers’ investment in goodwill
- Infringement standard: “likelihood of consumer confusion” about product source
- Usually determined by a multi-factor test
- But when consumers aren’t confused at purchase, courts may evaluate goodwill misappropriation
Defining Misappropriation
- My Goal: Determine when junior users have appropriated too much benefit in situations where consumers aren’t confused at purchase
- This requires us to separate “association” from “misappropriation”
- Association = calling attention to content using a keyword/TM
- Misappropriation = transference to the junior user of good feelings about TM owner
- TM doctrines like Initial Interest Confusion and Sponsorship Confusion conflate the two
What About Relevancy?
- When association = misappropriation, relevant content can infringe
- Non-TM uses
- Comparative information
- Commentary/criticism/parody
- After-market providers
- This may increase net social search costs
- TM owner can veto socially beneficial content
- Some searches must use alternative search terms
Misappropriation from Search Diversion
- Searchers dynamically assess the cost/benefit of incremental search steps
- A searcher who has been diverted decides whether to switch or continue
- In diversion cases, TM misappropriation should occur only when a junior user distorts decision-making because users’ switching costs exceed expected benefits from switch
- Analogous to bait ‘n’ switch
- Adjusts with strength of goodwill
- Creates space for relevant alternative content
Interesting Attributes of Internet Searches
- Internet searches can lower search costs
- Availability of filtering content
- Low extrication costs
- Comprehensive searches
- We cannot infer search objectives merely based on a keyword
- Searches often lack surrounding context
- Searchers have heterogeneous search objectives
- Searchers often choose keywords poorly
Preserving Relevancy
- Eliminate pre-sale goodwill misappropriation except for switching cost arbitrage
- Use false advertising when appropriate
- Expect search providers to optimize relevancy
- Marketer abuses will be curbed by technology and evolved searcher expectations/practices
- Search providers need a legal safe harbor for advanced relevancy techniques