Google Adwords is a service that allows users to place advertisements on Google network websites by using keywords specific to their product or service. When a user types a word or phrase into the Google search engine that is related to an Adword advertiser's product or service, their advertisements appear next to the user's search results.Google: Official AdWords Website

In a change of policy regarding trademarks appearing in keyword ads, Google will allow brand names to show up in AdWords copy. Starting on May 15, 2009, Google will accept new ads containing trademark terms. However, the ads will not appear online until June 11, 2009.CNET: Google Revises AdWords Trademark Policy (May 14, 2009)

Two companies,Rescuecom and Firepond, have filed lawsuits against Google arguing "that their respective keywords are an extension of the trademark they have acquired on their brands and that Google should not be encouraging competitors to violate the trademark by using it to promote their own products. AdWords allows anyone to bid on a given keyword and win placement on the top or right side of a search results page based on a combination of factors such as the maximum bid for that keyword as well as the quality of the ad."CNET: Google Revises AdWords Trademark Policy (May 14, 2009)

Firepond, a manufacturer of sales management software filed a lawsuit against Google in 2009. The suit was regarding whether Google should be "allowed to sell keywords bearing a company's trademark to its competitors."CNET: Google Revises AdWords Trademark Policy (May 14, 2009)

Rescuecom, a PC support company, had filed a similar lawsuit several years earlier, which was dismissed in 2006. In April 2009,, Rescuecom was still pursuing the suit through an appeals court.

Users of Google Adwords can determine how much they want to pay each time an internet user clicks on their ad and therefore bid for advertisement display. The ads will compete with other similar ads or those that contain the same keywords and those that have a higher per-click bid will be displayed more often. Users can also set a monthly budget, meaning that their ad will no longer be displayed once it has reached a certain number of clicks.Google: Adwords Help Center