American Airlines Drops Google Trademark Lawsuit from Bloomberg reports that the two sides have settled the search ad legal dispute. Each side has agreed to pay their own legal fees and the terms of the settlement were not disclosed.
American Airlines sued Google about a year ago over trademark infringement in their AdWords product. In short, American Airlines did not want Google to allow advertisers to bid on the following terms: American Airlines, American Airlines Deal, Free AA Travel Offers, americanairlines.com, AmericanAirlines, American Airline, AmericanAirlines Com, www.americanairlines.com, and American Air Lines.
Eric Goldman thinks that Google “did not make any special concessions to American Airlines to block keyword ads on their trademarks.” I personally did some searches on the disputed keywords above. While most did not return ads from any third-party companies, some did return ads. So it is really hard to see who actually “won” this legal case.