Rosetta Stone, who sued Google over search trademark, claimed that the ads on Google infringed trademark law and confused consumers. The court ruled in Google's favor but Rosetta Stone decided to appeal.
Rosetta Stone is now taking the case to the U.S. Court of Appeals. This's significant because a U.S. appellate court has never issued a ruling on trademarked keywords, in part because Google has beaten--or simply worn out--so many opponents over the years.
In its appeal, Rosetta Stone argues that the Virginia federal district court that found in Google's favor got it wrong on numerous counts. The company says that the lower court should have been swayed by its evidence that searchers were confused by AdWords, and alleges that some of the advertisers paying for sponsored links keyed to its trademarks sold counterfeit Rosetta Stone products.
Google has yet to file its response brief, which is due Nov. 26.