However, if you file a trademark complaint with Google then Google will (try to) stop people from using your trademark in their ad text.
This is something that is really left to the two parties involved and not Google barring any sort of applicable court decision or new law.
I've strongly considered putting it back up, but I don't want to risk a lawsuit. I'll hold off until there is some more case law to back us up.
I've been really struggling with this myself. One of our top competitors was denied a trademark on their name because it is too generic to the industry. We used to have a paid listing on their company name, which is also a great generic keyword. They sent us a cease-and-desist and we took down our listing even though I think we could have gotten away with it.I've strongly considered putting it back up, but I don't want to risk a lawsuit. I'll hold off until there is some more case law to back us up.
If it was very profitable, then I would consult an attorney about the matter.
If they were denied a trademark then they know that and filing against your even sending a C&D could be viewed as frivilous or malicious since they are aware that they do not meet the legal trademark requirements.
Of course, I'm not a lawyer but it sounds like you should ask one.
What makes it even more complicated is that we actually won a settlement against them years ago for violating our trademark in a similar manner. We're probably leaving some money out there, but better safe than sorry for now.
I've been really struggling with this myself. One of our top competitors was denied a trademark on their name because it is too generic to the industry. We used to have a paid listing on their company name, which is also a great generic keyword. They sent us a cease-and-desist and we took down our listing even though I think we could have gotten away with it.
I've strongly considered putting it back up, but I don't want to risk a lawsuit. I'll hold off until there is some more case law to back us up.
A cease and desist letter to prevent someone from bidding on brand keywords is a classic scare tactic. The chances are extremely strong that they're bluffing and even if they're not, you would win the suit.
The only real issue that should deter you from bidding on the competitor terms is if you have any moral/ethical issues against it.
I cited a case to them where geico tried suing google over this exact issue (competitors using their brand as a keyword). A case Geico lost.) I told them that if they had an issue with google allowing advertisers to use their brand as keywords that they should take it up with google as I was not violating their TOS in any way. I never heard from them again so I figure they were contacting me hoping I would stop out of fear, but since I refused they have left it alone.
I accidently used Keword Insertion on an adgroup that had a competitor brand name in it and so my ad was showing with that (clearly confusing to the searcher) - they sent a C&D letter and we immediately took it down. We didn't mean to do that. I know other companies use Keyword insertion to try to circumvent using TMs in adcopy since you are allowed to bid on the keyword but not allowed to put it in your ad, but this is just asking for trouble, IMO.
Think it this way, if you were the size of your competition, and someone else wanted to make more sales using your brand, for how long would you allow them to do it?