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Utah marks caught in legal web
According to its current plans, the US state of Utah will impose a new registration system from 30 June that will enable IP holders to obtain digital ‘trademarks’ for their brands. In a groundbreaking move, they will be used to prevent competitors from riding on the coat-tails of Internet searches for their market rivals. However, the plan has run foul of search giant, Google, which may launch legal action against the state.
On Google’s side is Santa Clara University law professor, Eric Goldman, who – concerned at the legislation’s most logical consequences – argues that it ‘tries to stop keyword advertising across the world.’ He added: ‘We've got some scientists in the Utah Legislature cooking up some really bad experiments.’
The Trademark Protection Act marks the latest in a series of attempts by Utah to regulate the Internet, following unsuccessful stabs at stamping out spyware and pornography. Despite legal advice to the state indicating that the law could be overturned in court, it was approved unanimously earlier this year. Governor John Huntsman signed the bill on 19 March, but Google is planning to meet with him in the next few weeks before deciding whether or not to file suit.
Frustration had grown in the Utah Legislature over how homegrown firms were being crowded out by the mass of comparative advertising on the web. Senate majority whip, Dan Eastman, gave the media an example of how a particular Utah optical firm had suffered: ‘You put “1-800 Contacts” into [a search], and you get 47 different contact lens makers.’
Utah says that Congress has failed to make adequate laws in the field; but Goldman argues that, under the Constitution, the regulation of interstate commerce is a federal issue.
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