Trademarks. In at the least three cases, trademark owners have alleged that advertiser chargeable for trademark infringement due to affiliate conduct such as affiliates bidding on trademark owner’s key phrases. See DSW v. Zappos. com S.
D. Ohio complaint filed May 12, 2008; NameSafe v. LifeLock M. D. Tenn. criticism filed June 26, 2008; Rosetta Stone v.
Rocket Languages C. D. Cal. complaint dated July 2, 2008. This is an unsettled area of trademark law. I think it will be analyzed as contributory trademark infringement, which probably would result in no liability for advertisers.
As a degree of evaluation, advertisers are not chargeable for ads performing on a site that infringes trademarks. See Fare Deals v. World Choice Travel. com case, 180 F. Supp. 2d 678 D.