Is it legal to bid on another company’s brand on Google?

When a company activates a Google Ads campaign, a possible strategy to gain visibility is to bid on keywords that match another company’s brand so that their ad appears when a user directly searches for a competitor.

But is this legal, ethical, or advisable? Let’s analyze it!

About Legality

In Spain, the Trademark Law 17/2001 regulates the rights of registered trademark owners, establishing that they can prevent third parties from using identical or similar signs in economic trade if there is a risk of confusion. However, using a third-party trademark as a “keyword” in Google Ads is not prohibited per se.

In other words: yes, you can bid on a competitor’s brand as a keyword, within certain limits. The problem arises when, in addition to bidding on the keyword, that trademark is used as such within the ad text (titles, descriptions, display URL, etc.), or if it implies an affiliation or endorsement by the original brand: this could constitute trademark infringement or misleading advertising.

Therefore, it is legal to use trademarks as keywords to display sponsored ads, provided that the trademark’s function of indicating the business origin is not undermined, nor is the consumer misled regarding the origin of the advertised products or services.

Risks and Limitations: Why You Should Be Careful

Although it is permitted in practice as long as a series of requirements are met, it is not without risks, such as those listed below:

• Consumer confusion: If the ad does not clearly identify the actual advertiser, it can lead to error, which is both a reputational and legal risk.
• Competitor claims: The trademark owner may file a complaint or claim with Google or in court.
• Image of “aggressive advertising”: Even though its use is legal in some cases, it is not always well-perceived by users or other companies. This is especially relevant in professional sectors such as the legal field.
• Ad quality and Cost Per Click (CPC): Normally, an ad “conquering” a third-party brand starts with lower relevance compared to the official ad, which can increase the cost per click and reduce effectiveness.

Best Practices from a Legal / Compliance Approach

For a company (or law firm) considering this strategy, it is advisable to consider the following recommendations, which are also useful for advising clients:

• Do not use the third-party brand in the ad text: This is the safest way to avoid trademark infringement claims. Therefore, the brand should not be used “as a trademark” or in any visible content of the ad. In any case, the brand’s function must be respected and must not lead to error.
• Clearly display your corporate identity: Make it clear who you are and that there is no link with the brand being searched for.
• Avoid implications of affiliation or commercial relationship: No logos, colors, or presentations that could lead to confusion.
• Assess risks vs. benefits: In some sectors, it may be legitimate, but it can also damage reputation; it doesn’t always pay off.
• Protect your own registered trademark: Registering your brand (if you haven’t already) provides you with legal tools if someone else bids on your name.
• Consult with a specialized lawyer before launching aggressive campaigns: Especially if there is strong competition, litigation risk, or if you operate in regulated sectors.

Conclusion: A Commercial Strategy That Requires Prudence

Bidding on another company’s brand in Google Ads is a strategy many businesses consider to capture the attention of those searching for competitors. However, although it is not prohibited in all cases, it must be used with caution and in compliance with applicable regulations to avoid undermining the function of the competitor’s brand or incurring in illegitimate use that violates third-party rights.

Consequently, it can only be carried out correctly by maintaining a clear separation between your own brand and the third party’s: without direct mention in the ads, without creating confusion, and without stating or implying that you belong to that brand. Although it is a very common practice, it is advisable to study each case individually to determine whether the overall use of the trademark as a keyword is considered legitimate or not.

In short, it can be done, but with caution, transparency, and by taking certain limitations into account. However, it is not the most appropriate practice, even if it is common. So common, in fact, that if you search for “Metricson,” you will see that we are not “the first” result 😉