American Airlines sued Google for using its trademark as a trigger for adwords in August 2007 in Texas Northern District Court.
Google claimed that use of AA's trademark does not amout to "use in commerce" as required by the Lanham Act § 1127. This line of reasoning has been upheld previously in the Norther District Court of California, but the Southern District Court of New York has categorically disagreed with it. The outcome of this case in Texas remains to be seen. Eric Goldman has however, highlighted some interesting strengths and weaknesses of this case.
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