In a reversal of a longstanding policy, Google plans to allow advertisers to use trademark terms in search ads even if the advertiser does not own the mark or have the owner’s explicit permission to use it—under certain conditions.

Currently, Google’s AdWords program enables marketers to place ads on the results page generated by a user’s search. These ads typically appear on top or to the right of the search results and are labeled as “sponsored links.” Although Google had previously allowed for the use of trademark terms to trigger such ads, it has long prohibited the use of trademark terms from appearing in the copy of these ads, unless permitted by the trademark owner. Now, Google is loosening this restriction to allow retailers to use the names of brands they sell in their ads, as well as sellers of components or replacement parts. In addition, impartial informational Web sites will also be able to use trademark terms in their ads, regardless of the ownership of the mark; however, the reviews provided by those sites should be non–competitive and the sites are not supposed to sell or help sell goods or services that are competitive to those provided by the trademark owner.

The new rule, slated to go into effect on June 15, adds Google to a group of search engines, including Yahoo! and Microsoft, with more permissive rules for the use of trademark terms in search–generated ads. According to Google, its goal is to make its sponsored links less generic and, therefore, more effective, boosting click–through rates. There is a concern, however, that the new policy also means that trademark owners will have fewer recourses when their marks are used in ways they do not like.

Yet, it is important to note that many advertisers will still be prohibited from using trademark terms in their ad copy, including sites that sell counterfeit goods, retailers that primarily sell a competitor’s products, advertisers that criticize the trademarked brand, and those that do not send users to a landing page with a purchase option. Google will review the ad copy and the landing page of each search ad to verify that the marketer is permitted to use the brand name in its ad text.

Why it matters: The new policy adds a layer of complication to Google’s AdWords program and requires brand owners to be more vigilant in protecting the integrity of their trademarks.