EU Set to Rule on Google Search Ads

A landmark ruling at Europe's highest court on Tuesday will determine whether advertisements that pop up alongside Internet search results when consumers search for brand names such as Louis Vuitton violate European trademark laws.

The court will also rule whether Internet giant Google Inc. can be held liable for any breaches of trademarks in advertisements that appear on its Web site. A finding against Google will have wide implications for the multibillion dollar Internet search industry where Google, Yahoo Inc., Microsoft Inc.'s Bing and other search engines generate valuable revenue by enabling advertisers to tag their ads to particular search words, often famous brands. The ruling will also set out for the first time in the EU how far trademark owners can restrict online use of their brands.