The Utah legislature has quietly passed a dangerous law allowing trademark owners to prevent their marks from being used as keywords to generate comparative ads. If this law takes effect, a company like Chevrolet couldn't purchase "sponsored link" space on the Google results page when a user types "Toyota" as part of a search query--at least if the latter term is registered in Utah as an "electronic registration mark."

Most analysts agree that this legislation is misguided, unconstitutional (it attempts to preempt Federal trademark laws as well as clashes with the Commerce Clause) and could have incredible consequences if applied in other business situations.  If the thought process behind SB 236 were applied to billboards or newspaper ads, no one would be able to place their ad proximate to a competitor's ad.

More Details 

• Utah SB 236 (the "Trademark Protection Act"), enacted March 19, 2007
• Eric Goldman: Keyword Advertising as Corporate Identity Theft—Rep. Eastman Defends New Utah Law Banning Keyword Advertising 
• Utah Rep. Easton's Defense of the Law