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 Utah SB 236 - No more keyword advertising in Utah?

Utah last month enacted Utah SB 236, the "Trademark Protection Act," a law that effectively prohibits the competitive use of trademarked terms as keyword advertising triggers. The Act establishes a new type of mark called an Electronic Registration Mark. Once a mark is electronically registered, the statute prohibits use of the Electronic Registration Mark to trigger advertising for a business, goods, or services of the same class as those represented by the Electronic Registration Mark.

What happened to lawful competitive advertsising? No wonder, the new law isn't winning any praise. A Google spokesman said Google believes the new law is likely to be challenged in court and struck down as unconstitutional.

After a meeting with senior executives from Google, eBay, Microsoft, America Online, Yahoo, 1-800 Contacts and met, the state has a better idea of who they are up against and now have to decide if the law is worth a legal fight. Rep. David Clark, House majority leader and co-sponsor of the suddenly controversial legislation said after the meeting: "I don't know that we'll repeal it, but we understand we've got some work to do."




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