Company with Similar Name Ordered to Buy 'Negative Keywords' for Ads

A federal judge has stirred the muddy waters of companies with similar names.

Orion Bancorp took Orion Residential Finance to court in Florida arguing that it had used the name Orion since 2002 and had held a trademark for it since then, reports Out-Law.com. Both companies sell financial services and products.

In ruling for Orion Bankcorp, the judge not only prohibited Orion Residential Finance from using Orion in signs, slogans and advertising, but it also prohibited its use in keywords or "adwords" in Internet advertising. Not only that, it ordered Orion Residential Finance to buy "negative keywords" to prevent its name from coming up in searches for Orion Bancorp.

A similar case came up in Australia last year against Google, which has faced other lawsuits of this sort.

Ars Technica notes :

If judges show a willingness to shut down this sort of keyword advertising in particular situations, we might see legal action in this area shift towards cases between the parties involved in disputes, rather than attempts to force change upon Google. Search Engine Watch calls the judge's decision in the Orion case a "dangerous precedent," but it could prove a popular one for companies that want to play hardball with rivals.