In a policy shift, Google’s UK & Ireland operation has announced that, from May 5th, Adwords users will be allowed to bid on trademarked names. US users have been able to do this for four years.

The move has predictably stirred up a storm of complaints from Media agencies and companies afraid that rivals will be able to hijack years of hard branding work with one deft bid. Many more people are suggesting that this is an example of Google pushing the boundaries of legality to maximise their profits in an area where they already hold a virtual monopoly.

Bidders will not be allowed to incorporate the trademark into the advert itself, but can bid to have their adverts displayed when a searcher enters the trademark as a search term.

Google believes that this action is legal and nobody has yet challenged this assertion. It appears to be another area where the law has not kept up with the phenomenal pace of change that characterises the internet and search engine marketing in particular.

Of course, at Upstream Connections, we believe firmly in the power of natural search results. On average, a front page listing in Google’s natural listings brings three times the traffic of a paid listing. Drop us a line to find out more.