Trademark Bidding in the UK: Legal Essentials

Running search ads against your competitors’ brand names can be a powerful way to win customers at the point they’re ready to buy. It’s also one of the most common PPC tactics that triggers legal questions and complaints.

If you’re considering trademark bidding for your next campaign - or you’ve discovered rivals are bidding on your brand - it’s important to understand what UK law allows, where the line is drawn, and how to manage the risks sensibly.

Below, we break down how trademark bidding works under UK law, what’s permitted on major ad platforms, and the practical steps to protect your brand while still advertising competitively.

What Is Trademark Bidding And Why Do Businesses Use It?

Trademark bidding (sometimes called “brand bidding”) means bidding on keywords that include a brand or product name protected by trade mark rights. For example, showing your ad when someone searches “Brand X running shoes” - even if you’re Brand Y.

Small businesses use this tactic to:

• Capture high-intent traffic that’s close to purchase.
• Compare their offering against a well-known competitor.
• Defend their own brand terms from resellers or rivals.

Done properly, trademark bidding can be compliant and effective. Done poorly, it can cross into trade mark infringement, passing off or misleading advertising - all of which carry real risks for your budget and your reputation.

Is Trademark Bidding Legal In The UK?

In short: bidding on a competitor’s trade mark as a keyword can be lawful in the UK, but using that trade mark in a way that confuses consumers or unfairly trades on the brand’s reputation can be unlawful.

Two layers matter:

• Ad platform rules (e.g. Google Ads policies on trade marks), and
• UK law (primarily the Trade Marks Act 1994, passing off, and advertising rules).

Ad platforms generally allow advertisers to bid on a trade mark as a trigger keyword in many situations. However, they restrict use of trade marks in ad text where the advertiser is not the trade mark owner or an authorised reseller. This is a policy choice, not the law - but breaching platform rules can get your ads disapproved or your account suspended.

Under UK law, the key question is whether your ad causes a likelihood of confusion about the origin of the goods or services, takes unfair advantage of the competitor’s reputation, or misleads consumers. If your ad suggests an economic link with the trade mark owner when there isn’t one, you’re in risky territory.

Bottom line: it’s possible to bid on competitor terms, but the way you write the ad and the landing page, the clarity of your branding, and whether you’re making fair, verifiable comparisons will determine whether you stay on the right side of the law.

Which UK Laws Affect Trademark Bidding?

Several legal regimes interact here. You don’t need to be a lawyer to navigate them - but you do need to know the basics to avoid common pitfalls.

Trade Marks Act 1994

Using a competitor’s registered trade mark in advertising can infringe if it:

• Creates a likelihood of confusion as to origin, or
• Takes unfair advantage of or is detrimental to the distinctive character or repute of the trade mark (even without confusion for famous marks).

Triggering an ad on a competitor’s mark as a keyword may be acceptable if your ad makes it clear you’re a different business, and the average internet user can tell your products/services come from you. Avoid suggesting affiliation, endorsement, or an economic link.

Passing Off (Common Law)

Even if your competitor hasn’t registered a trade mark, you can still face a passing off claim if you misrepresent your goods/services in a way that leads consumers to believe they’re connected with the competitor, causing damage to their goodwill.

Advertising And Consumer Protection Rules

• CAP Code and ASA oversight: Ads must be legal, decent, honest and truthful. Comparative claims must be verifiable and not mislead. The Advertising Standards Authority can require ads to be amended or removed.
• Business Protection from Misleading Marketing Regulations 2008 (BPRs): Comparative advertising must compare like-for-like, be objective, and not denigrate competitors or mislead.
• Consumer Protection from Unfair Trading Regulations 2008 (CPRs): Prohibits misleading actions/omissions likely to cause the average consumer to take a transactional decision they otherwise wouldn’t.

If your ad mentions a competitor (explicitly or implicitly through the keyword) and makes performance or price claims, you should be prepared to substantiate them. If you’re concerned about how these rules apply, it’s worth getting tailored guidance from an intellectual property lawyer.

Remember that general consumer law principles apply to your ad copy and landing pages too - it’s not just the keyword that matters.

When Can You Use A Competitor’s Trade Mark In Ads?

There’s a crucial distinction between bidding on a trade mark as a keyword (often allowed) and using a trade mark in your ad copy or on your landing page (more sensitive).

Bidding On The Keyword

Usually permitted by platforms and may be lawful if your ad and landing page avoid confusion and unfair advantage. For example, your ad can appear for “Brand X” searches if your own branding is clear and you don’t suggest an affiliation with Brand X.

Using The Mark In Ad Text

Often restricted by platform policy unless you’re the owner or authorised reseller. From a legal standpoint, using a competitor’s mark in the text can be lawful in limited scenarios, such as objective, verifiable comparative advertising that does not mislead or tarnish the rival brand. You should only do this after careful review and with evidence to back up any claim.

Comparative Landing Pages

Comparative landing pages are common when users search for a competitor. To reduce risk:

• State clearly who you are and that you’re not affiliated with the competitor.
• Use fair, objective criteria (price, features, warranty) and cite sources or a date-stamped methodology for comparisons.
• Avoid copycat branding or URLs that mimic the competitor’s name.
• Keep claims current - out-of-date comparisons can be misleading.

If you work with creators or affiliates to drive traffic, make sure any endorsements comply with UK rules on influencer marketing disclosures.

Common Risks With Trademark Bidding (And How To Manage Them)

Trademark bidding isn’t inherently unlawful, but these are the typical ways it goes wrong:

• Confusing ad copy: Using the competitor’s name in a way that implies a relationship or endorsement.
• Lookalike branding: Similar brand colours, logos, or URLs that increase the chance of confusion.
• Unsubstantiated claims: “Better than Brand X” without objective, verifiable proof.
• Negative or denigratory comparisons: Breaches advertising rules and invites complaints.
• Remarketing without consent: Using tracking or profiling without complying with data protection and e-privacy rules.
• Platform policy breaches: Even if the law might allow a comparison, you can still be blocked by ad platform policies.

To manage the risk:

• Keep your own brand front and centre in ads and on landing pages.
• Don’t use the competitor’s trade mark in ad text unless you’re sure the comparison is lawful, accurate and permitted by platform policy.
• Capture evidence for any claims (pricing screenshots, product specs, test results), and date them.
• Use clear, non-misleading display URLs and page titles.
• Implement a compliant cookie banner and a clear Privacy Policy if you’re tracking users.
• Train your team and agency partners on these rules, and review ads regularly.

If you receive a complaint or cease-and-desist letter, pause the ads and seek advice quickly. Early, pragmatic changes can often resolve disputes before they escalate.

A Step-By-Step Checklist To Run PPC Campaigns Safely

1) Decide Your Strategy And Risk Appetite

Are you defending your own brand, comparing products, or fishing for general category searches? The clearer your aim, the easier it is to set safe boundaries for copy and landing pages.

2) Map Your Keywords

• Separate “competitor exact” terms from generic category terms.
• Add negative keywords to avoid irrelevant brand lookups (e.g. “customer service number” + rival brand).
• Test copy that works without using the competitor’s name in the text.

3) Draft Clear, Non-Misleading Ad Copy

• Lead with your brand and USP.
• Avoid “official,” “authorised,” or phrasing that hints at affiliation.
• Don’t reference the competitor unless you’re making an objective, verifiable comparison that you can prove.

4) Build A Compliant Landing Page

• State your brand clearly above the fold.
• If you compare, do it fairly: like-for-like features, accurate pricing, and sources.
• Include housekeeping: cookie consent where needed and an up-to-date Privacy Policy.

5) Check The Legal And Policy Boxes

• Trade mark risk: no confusion, no unfair advantage, no denigration.
• Advertising rules: fair, verifiable, not misleading; consider the CAP Code, BPRs and CPRs.
• Platform rules: confirm Google/Microsoft Ads policies on trade marks and comparisons.

6) Align Your Contracts With Your PPC Approach

• Working with an agency? Ensure the scope, compliance responsibilities and approval process are set out in a robust Marketing Service Agreement.
• If brand ambassadors or partners will reference rivals, make sure your contracts reflect ad compliance and disclosure requirements. Your wider Website Terms should also align with how you promote and sell.

7) Monitor, Document, Iterate

• Keep records of your claims and comparisons.
• Monitor complaint channels (ASA, platform notices, direct emails) and respond promptly.
• Refresh comparisons to remain accurate over time.

How To Protect Your Own Brand From Competitor Bidding

Defence is as important as offence. Even if you don’t plan to run competitor campaigns, put some basics in place to protect your brand value.

Register Your Trade Mark

A registered mark gives you stronger rights to challenge infringing ads and to ask platforms to restrict ad text that uses your mark. If you’re still relying on unregistered rights, consider applying to register a trade mark as soon as your brand is settled.

Monitor Brand Terms

Set up alerts in your ad accounts and run regular SERP checks. If you see confusing ads, take screenshots of the ad, extensions, sitelinks and landing page, and note the time and search query. This evidence helps if you submit a platform complaint or contact the advertiser.

Use Platform Tools And Complaints Processes

All major ad platforms have trade mark complaint forms. If an advertiser is using your mark in ad text without permission, you can often get those ads restricted. For borderline cases (e.g. confusing landing pages), a detailed complaint with evidence can still be effective.

Consider Licensing And Collaboration

If you work with resellers or affiliates, clear branding rules in your contracts matter. When you license your brand to others, ensure your IP Licence controls how they can reference your mark in ads and what they must avoid, including restrictions on bidding and ad copy.

Enforce If Necessary

If a competitor refuses to change a misleading or infringing ad, your options range from a firm note to their legal team to formal action. The right approach depends on risk, evidence and commercial impact - it’s wise to speak with an IP lawyer before escalating.

Practical Scenarios (What’s Usually OK - And What’s Not)

Likely Acceptable

• Triggering your ads on a competitor’s brand keyword, where your ad copy is clearly your own brand and does not reference the competitor, and your landing page doesn’t suggest affiliation.
• Objective, substantiated comparisons (e.g. “Our plan includes 24/7 support, Brand X’s plan doesn’t”) that meet comparative advertising rules and platform policies, with sources or time-stamped evidence.
• Resellers using the brand they are authorised to sell (subject to platform permissions and accurate descriptions).

High Risk / Likely Unlawful

• Using a competitor’s trade mark in ad text when you’re not authorised, especially with phrases like “official” or “authorised”.
• Lookalike landing pages or URLs that give the impression you’re the competitor.
• Unverifiable claims that disparage a named competitor, or out-of-date comparisons.
• Retargeting users from competitor name searches without complying with data and e-privacy rules, including cookie consent and lawful basis for marketing. If you email users, ensure your practices meet UK email marketing laws.

If you’re unsure where your planned copy sits on this spectrum, a quick sense-check can save you weeks of back-and-forth or a formal complaint.

Essential Legal Documents To Support Your Advertising

Getting your legals in order will make your PPC activity smoother and safer, especially when third parties are involved.

• Marketing Service Agreement: When you outsource PPC, set approval workflows, compliance obligations, and indemnities in a clear Marketing Service Agreement.
• Brand/Partner Policies: Provide do’s and don’ts for bidding and ad copy if resellers or affiliates promote your brand; align with your IP Licence terms.
• Website Terms & Privacy: Ensure your ad landing pages tie into your Website Terms and a compliant Privacy Policy, particularly if you collect leads via forms or use cookies.
• Internal Approvals: Keep a record of claim substantiation, updated at regular intervals, and a sign-off process before campaigns go live to avoid false advertising risks.

Templates found online are rarely tailored to your advertising model or risk profile - getting these documents drafted properly helps you stay protected as you scale.

Key Takeaways

• Bidding on competitor trade marks as keywords can be lawful in the UK if your ads and landing pages are clearly your own and don’t mislead or imply affiliation.
• Using a competitor’s trade mark in ad text is far riskier and often restricted by platform policies; if you make comparisons, they must be objective, verifiable and fair.
• UK law you need to consider includes the Trade Marks Act 1994, passing off, the CAP Code, the BPRs and CPRs - plus data/privacy requirements when tracking or marketing to users.
• Reduce risk with clear branding, accurate claims with evidence, compliant landing pages, and a robust approval process; align contracts like your Marketing Service Agreement with your PPC approach.
• Protect your own brand by registering your mark, monitoring brand terms, using platform complaint tools, and setting bidding rules in your IP Licence and partner agreements.
• If a campaign or a competitor’s ad looks borderline, get a quick review from an IP lawyer before it becomes a bigger problem.

If you’d like tailored help with trademark bidding, ad copy reviews or brand protection, you can reach us at 08081347754 or team@sprintlaw.co.uk for a free, no-obligations chat.