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I've tried searching for hard evidence of the illegality or plain inhumanity of doing natural optimisation for competitor trademarks but have come up short. Can anyone point me in the right direction?
I've found a couple of US based cases but nothing in the UK.
Using keywords in meta elements or as triggers for advertisments does have some prior case law, as in Reed Business Information vs Totaljobs.com [out-law.com]
Intellectual property and trademark law is a complicated business though, so if it's the legal aspects you're concerned with, I'd consult a lawyer.