High Court of England and Wales Rules in Favor of United Online Subsidiaries Interflora, Inc. and Interflora British Unit
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High Court Rules that Marks and Spencer's Use of the "Interflora"
Trademark as a Google AdWord to Advertise Its M&S Flowers & Gifts
Website Was Trademark Infringement
WOODLAND HILLS, Calif.--(BUSINESS WIRE)--May. 21, 2013--
United Online, Inc. (Nasdaq: UNTD), a leading provider of consumer
products and services over the Internet, announced that the High Court
of England and Wales issued its judgment in favor of United Online’s FTD
subsidiaries, Interflora, Inc. and Interflora British Unit, in their
long-running lawsuit against Marks and Spencer plc. In December 2008,
Interflora, Inc. and Interflora British Unit initiated proceedings
against Marks and Spencer in an attempt to stop Marks and Spencer from
bidding on the “Interflora” trademark on Google. In today’s ruling, the
trial judge concluded that Marks and Spencer’s use of the “Interflora”
trademark as a Google AdWord to advertise the Marks and Spencer’s
Flowers & Gifts website constituted trademark infringement.
In the ruling, Mr. Justice Arnold, the trial judge, stated:
“[T]he M&S advertisements which are the subject of Interflora’s claim
did not enable reasonably well-informed and reasonably attentive
internet users to ascertain whether the service referred to in the
advertisements originated from [M&S or Interflora] ... On the contrary,
as at 6 May 2008, a significant proportion of the consumers who searched
for 'interflora' and the other Signs, and then clicked on M&S’s
advertisements displayed in response to those searches, were led to
believe, incorrectly, that M&S’s flower delivery service was part of the
Interflora network.”
“We are very pleased with the judgment which marks the conclusion of the
trial of a legal case that began in 2008 and involved hearings before
the Court of Justice of European Union and the UK Court of Appeal before
finally returning to the High Court for trial,” said Mark R. Goldston,
Chairman, President and Chief Executive Officer of United Online. “This
judgment supports all the hard work and effort our Interflora, Inc. and
Interflora British Unit subsidiaries have put into defending the
Interflora brand.”
Robert S. Apatoff, President of FTD Companies, Inc., added, “This
judgment means that Marks and Spencer cannot bid on the trademark term
'Interflora' in the Google AdWords program. Keyword advertising is a
very powerful tool and from a consumer protection perspective, it is
important that Internet search results take consumers directly to the
brands they are seeking. We wanted to ensure that when consumers search
on the Internet for 'Interflora,' they can be confident in knowing that
the flowers they purchase are coming from a member of the Interflora
floral network.”
The case will return to court later in the year to determine how much
Marks and Spencer must pay Interflora, Inc. and Interflora British Unit
by way of damages and costs. Each party may seek permission to appeal.
About United Online®
United Online, Inc. (Nasdaq: UNTD),
through its operating subsidiaries, is a leading provider of consumer
products and services over the Internet, where their respective brands
have attracted a large online audience that includes more than 100
million registered accounts worldwide. The company's FTD segment
provides floral-related products and services (FTD,
Interflora,
Flying Flowers, and Flowers Direct) for consumers and retail florists,
as well as other retail locations offering floral and related products
and services. The company's Content & Media segment provides online
nostalgia products and services (Classmates,
schoolFeed
and StayFriends)
and online loyalty marketing (MyPoints).
Its primary Communications segment service is Internet access (NetZero
and Juno),
including 4G mobile broadband (NetZero
Wireless).
United Online, FTD and Interflora are trademarks or registered
trademarks of United Online, Inc. or its subsidiaries. All other company
or product names are trademarks of their respective owners.
Source: United Online, Inc.
United Online, Inc.
Investors:
David Bigelow,
818-287-3560
dbigelow@corp.untd.com
or
Press:
Scott
Matulis, 818-287-3388
pr@untd.com