Associate Press reports that Google has arrived at an out of court settlement with Geico Insurance Company which alleged that Google exploited their brand illegally.


According to Associate Press Google Inc. has arrived at a settlement with Geico Inc. to avoid a trial in the court.

U.S. District Judge Leonie Brinkema gave Google and Geico 30 days to settle that part of the dispute or face a trial on the issue. The deadline for reaching a settlement was to expire Wednesday, 7th September.

In a ruling late last year, Brinkema rejected Geico’s request to block Google from letting rival insurance companies have their ads displayed after Geico’s name in a search request.

But in a written ruling last month Brinkema left the door open for Geico to collect damages from Google for featuring ads from rivals that used Geico’s name in the heading above the Web links, as well as the subtext.

Washington-based Geico is owned by Berkshire Hathaway Inc., the company controlled by billionaire Warren Buffett.

Google sells the right to have ads linked to specific search terms. Advertisers usually bid on general terms, such as “hotel” or “DVD,” but Google also auctions off company trademarks, such as Geico. That practice has infuriated many trademark holders because it gives rivals a chance to lure away prospective customers.

Google had already scored a major victory in the trademark infringement case, filed in May 2004 in a Virginia federal court.

Google’s next challenge is a lawsuit filed by another insurer, AXA Group, and Plymouth, Mich.-based American Blind and Wallpaper.

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