Re: Estee Lauder sues Excite over keywords

From: <richard_at_tenagra.com>
Date: Thu, 11 Feb 1999 11:14:18 -0600 (CST)

Hey all,

I got this forwarded to me from a source at Estee Lauder
(see below my sig). It is the official statement on the
lawsuit, distributed by Estee Lauder's press office.

There has been some misinformation in our discussions. Here
is basically the jist of what the statement says:

-- When a consumer uses the Excite or Webcrawler search
engine and types "Est_e Lauder" as a keyword, a Fragrance
Counter banner ad appears. This ad presents the Est_e Lauder
trademark so prominently that consumers viewing the ad may
conclude incorrectly that they are viewing an online ad from
Est_e Lauder or that TFC is in some way associated with
Est_e Lauder. Est_e Lauder does not sell Est_e Lauder
products, or any other products to TFC and TFC is not an
authorized retailer or distributor of Est_e Lauder products.

--Similarly, when a consumer uses the Excite or Webcrawler
search engine and types "Origins" as a keyword, a banner ad
for The Fragrance Counter appears. Having lured consumers
seeking information about ORIGINS to its website in this
way, TFC then directs consumers to a list of cosmetics
products - none of which are ORIGINS products.

--Excite maintains a "Shopping Channel"
(www.excite.com/shopping/cosmetics_ and_fragrances/) through
which consumers can shop online for brand-name cosmetics and
fragrances.

--When consumers click on the word "Origins" within the
cosmetics search field of Excite's shopping service, they
are directed to a page on TFC's website which lists various
products, none of which are ORIGINS products.

--When consumers click on the word "Clinique" within the
cosmetics search field of Excite's shopping service, the
appearance and operation of Excite's menu and The Cosmetics
Counter's website mislead consumers into believing that they
are dealing with a site approved by or affiliated with
CLINIQUE.

Also, my source tells me that Estee Lauder has no problem
paying key word advertising to protect their trademarks.
They have done so on several search engines. But according
to this person, Excite has no policy against buying
trademark words that aren't your own.

If there is misinformation being passed around on in our
discussions about this or any other subject, please let
me know. I don't want to be sending out incorrect info.


richard hoy
moderator
online advertising discussion list

========================================================

EST...E LAUDER SUBSIDIARIES FILE SUIT AGAINST
THE FRAGRANCE COUNTER AND EXCITE FOR TRADEMARK INFRINGEMENT

SOURCE: Est_e Lauder Companies Inc. Press Office

On January 19, 1999, three subsidiaries of the Est_e Lauder
Companies Inc. filed suit against The Fragrance Counter,
Inc. and Excite, Inc. in the U.S. District Court for the
Southern District of New York, charging various acts of
trademark infringement, "bait and switch" false advertising
and unfair competition.

The subsidiaries, Est_e Lauder, Clinique Laboratories and
Origins Natural Resources, market high quality cosmetic,
skin care and fragrances worldwide under the brand names
EST...E LAUDER, CLINIQUE and ORIGINS, respectively. The
Fragrance Counter ("TFC") operates two Internet websites,
www.fragrancecounter.com and www.cosmeticscounter.com,
through which it sells cosmetics and fragrances. Excite
operates two Internet search engine sites on the Internet's
World Wide Web, Excite (www.excite.com) and Webcrawler
(www.webcrawler.com).

"Each year, Est_e Lauder devotes significant resources to
build and protect the value of our brands and trademarks and
to maintain the veracity and quality of our products for
consumers," said Fred H. Langhammer, President and Chief
Operating Officer of Est_e Lauder Companies. "We have a
history of taking action against anyone who threatens the
brands and trademarks which are the foundation of this
company. We have filed this lawsuit to protect both our
trademarks and our consumers who may be misled by TFC's
advertising efforts on Excite and Webcrawler."

The charges specified in the suit include the following:

-- When a consumer uses the Excite or Webcrawler search
engine and types "Est_e Lauder" as a keyword, a Fragrance
Counter banner ad appears. This ad presents the Est_e Lauder
trademark so prominently that consumers viewing the ad may
conclude incorrectly that they are viewing an online ad from
Est_e Lauder or that TFC is in some way associated with
Est_e Lauder. Est_e Lauder does not sell Est_e Lauder
products, or any other products to TFC and TFC is not an
authorized retailer or distributor of Est_e Lauder products.

--Similarly, when a consumer uses the Excite or Webcrawler
search engine and types "Origins" as a keyword, a banner ad
for The Fragrance Counter appears. Having lured consumers
seeking information about ORIGINS to its website in this
way, TFC then directs consumers to a list of cosmetics
products - none of which are ORIGINS products.

--Excite maintains a "Shopping Channel"
(www.excite.com/shopping/cosmetics_ and_fragrances/) through
which consumers can shop online for brand-name cosmetics and
fragrances.

--When consumers click on the word "Origins" within the
cosmetics search field of Excite's shopping service, they
are directed to a page on TFC's website which lists various
products, none of which are ORIGINS products.

--When consumers click on the word "Clinique" within the
cosmetics search field of Excite's shopping service, the
appearance and operation of Excite's menu and The Cosmetics
Counter's website mislead consumers into believing that they
are dealing with a site approved by or affiliated with
CLINIQUE.

Est_e Lauder said that a number of its subsidiaries have
also filed suit in France and Germany complaining of TFC's
and Excite's conduct under the laws of those countries.

The Est_e Lauder Companies Inc. is one of the world's
leading manufacturers and marketers of quality skin care,
makeup, fragrance and hair care products. The Company's
products are sold in over 100 countries and territories
under well-recognized brand names including Est_e Lauder,
Clinique, Aramis, Prescriptives, Origins, MAC, Bobbi Brown
essentials, Tommy Hilfiger, jane, Donna Karan and Aveda.

END



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Received on Thu Feb 11 1999 - 13:00:02 CST