Ignorance not Bliss – Avoiding liability for infringing pay-per-click advertising activity

Often, businesses treat intellectual property just as something they need to own and register, without giving enough thought to the risk of infringement. Even where the risk of infringement is considered, business owners don’t often realise that they could be liable for the actions of their contractors or employees, even if they are unaware of them.

This is increasingly a problem when it comes to social media and online marketing, and a well-known dispute illustrates the risks involved. Ayesha Vardag, a prominent divorce lawyer, discovered that, unbeknownst to her, the marketing agency her firm had engaged was idding on the name of her previous employer in order to generate enquiries through Google Ads (formerly Google AdWords). Following negotiations, Vardag agreed to settle for over £40,000, as reported by The Lawyer.

The lesson is clear: if your marketing agency is running PPC campaigns on your behalf, make sure you have explicit written instructions about which keywords they are and are not permitted to bid on — including competitor brand names. Liability for trademark infringement can fall on you even if you were unaware of your agency's actions. If you'd like advice on managing your trademark infringement risks, get in touch with Azrights.

Shireen Smith is the founder of Azrights, a specialist IP law firm established in 2004. She has extensive experience in trademarks, brand protection and intellectual property, and is the author of 3 books including Brand Tuned.