Utah Bans Keyword Advertising

Eric Goldman writes "Last month, Utah passed a law banning keyword advertising. Rep. Dan Eastman, the Utah legislator who sponsored the law, believes competitive keyword advertising is the equivalent of corporate identity theft, causing searchers to be (in his words) 'carjacked' and 'shanghaied' by advertisers. He also takes a swipe at the EFF, dismissing its critique of the law as 'criticism from the fringes.'"

Follow the money..

[RightSaidFred99]

I got bored reading the articles and I couldn't find the answer immediately. Which campaign donor paid for this, or which Mormon edict is behind it? It's obviously one or the other.

Dumb Idea, Even Dumber Execution

[MaceyHW]

This ridiculous combination of horrendous policy, tortured understanding of technology, and regulatory sophistication boggles the mind. The best part is, rather than attack keyword advertising directly, the law creates an entirely new form of IP, the 'electronic registration mark':

Specifically, the law creates a new intellectual property right called an "electronic registration mark," defined as a "word, term, or name that represents a business, goods, or a service." . . . Once registered, an infringement occurs if another person "uses an electronic registration mark to cause the delivery or display of an advertisement for a business, goods, or a service: (i) of the same class, as defined in Section 70-3a-308, other than the business, goods, or service of the registrant of the electronic registration mark; or (ii) if that advertisement is likely to cause confusion between the business, goods, or service of the registrant of the electronic registration mark and the business, goods, or service advertised."

Luckily, the system is so loosely defined and, as TFA points out, directly in conflict with existing federal trademark law that it can't possibly stand. Apparently state legislators in Utah are available on the cheap, because I can't imagine the anti-keyword lobby has deep pockets. Maybe I can get some of this money, if only there were some way to cheaply deliver ads to this small group and only the small group...

Re:Utah again.

[ch-chuck]

That's just what I though when my senator (Byrd) proposed a constitutional amendment allowing school prayers - it a) Doesn't stand a snowball's chance in hell of passing, and 2) He gets brownie points for suggesting it. So in the end, nothing really changes except the good senators reputation amongst a certain constituency. Pure politics.

Re:Dumb Idea, Even Dumber Execution

[Anonymous Coward]

Great, so now somebody can quickly register every commonly purchasable product word (car, automobile, refrigerator, computer, etc.) and get an exclusive on online advertising to Utah internet users. Instant profit!

As has been pointed out, it won't stand. It can't, because as written it is completely open-ended nonsense.

This isn't much of a surprise

[ElForesto]

... at least for those of us living here in Utah. They've caught a bit of flak from members of the Bloghive in these parts, especially with the hackjob [senatesite.com] responses [senatesite.com] they've got going on. Of course, these are the same guys who tried to get a special E911 tax on VoIP [windley.com] and almost passed statewide franchise agreements [freeutopia.org], so you've got to know they're not entirely with it.

Re:Follow the money to here...

[Technician]

Which campaign donor paid for this, or which Mormon edict is behind it? It's obviously one or the other.

I think you might be onto something here.. It looks like follow the money. Now if I can find some data on the new registery mentioned in the article and who profits...

Snipped from the article....

Owners of eligible words can register the terms in a new registry by paying a nominal fee.

In Denmark...

[Anonymous Coward]

In Denmark it is illegal to use company names and other trademarked names for adwords. Only generic words can be used.

Re:No, you miss the point

[Tony Hoyle]

The issue the Utah legislators are against is (the following example is fictitious) Sony buying keyword advertisements for the "XBOX" keyword - in hopes of getting them to buy PS3s instead. The idea behind the law is that, in this example, Microsoft own the XBOX trademark, and by Sony buying ads for "XBOX", they are 'benefiting from another person's trademark'. Or something like that. To be more specific, it might be the case the Sony pay more, and people typing "XBOX" see ads for Sony, and not Microsoft. The legislators see that as "hijacking a trademark".

No. It's called 'advertising'.

Nothing wrong with it at all. In fact it happens already. Type 'xbox' and the first advertising link on the right I got was 'PS3 only £379 bargain'.

Free Ringtones

[rodney dill]

If you've ever tried to find true "Free Ringtones" you'll probably have an idea of the frustration that lead to this sort of law. It took me along time to identify Audacity 123 software, QualComm Purevoice software, BitPIM software, and a data cable as a means to create real free ringtones for my phone. Virtually every link to free ringtones had you buying a service are getting "free" ringtones only if you signed on to buy others. This is false advertising, and is an area that makes the internet useless. Again that what make the Internet the most useful (powerful search and association capability) brings it to its news for some intended purposes. Just banning the use of the word free in advertising would help. Though this would probably be impossible to implement and enforce.

The Utah Google Fund

[Alpha232]

Otherwise known as the UGF, will be setup via Google Checkout. In order for Utah visitors to see search results provided by google or pages where ad revenue is generated via Google Adwords, the user must pay the amount that would have been generated if the ads could have been shown in addition to a $0.75 processing fee per transaction. Visitors looking to save money may Pre-Fund in a minimum amount of $25 with only one $0.75 fee being charged for the transaction, when the balance goes below $1.00, your account will be automatically funded for an additional $25 plus $0.75 transaction fee.

Adsense customers may also setup a Utah Free Zone where the Adsense is not generated for Utah visitors but the loss of revenue is charged to the web host, Utah Restricted Zone where the Adsense javascript will prevent any Utah visitors from viewing the content and optionally Utah Pay Zones where users are required to subscribe in order to view content and the javascript will redirect them to the proper signup/payment page at the rates set by the webmater.

Thank you Utah for opening up new business models and revenue streams at the expense of your residents!

So, not a case of removing oxygen supply?

[BerntB]

Consider -- a state stupidly votes through a law that might kneecap Google's earnings. The champion of the law even insults the EFF.

Looks like a typical case of Microsoft removing a competitor's oxygen supply. It is not a conspiracy since Msoft are documented as astroturfers [google.com]...

You might be right in arguing "Never assume malice if it can be explained by stupidity" -- but in today's world even Utah law makers should have more insight.