Google Warns State of Utah on New Law

SALT LAKE CITY — A new Utah state law that curbs keyword-triggered advertising is unconstitutional and probably will be challenged in court, Google officials said.

The law was created by Unspam Technologies CEO Matthew Prince, the same brains behind the controversial child-protection registry, which requires adult companies to submit their email lists to be "scrubbed" of e-mail addresses to which minors could have access. The Free Speech Coalition currently is challenging the registry in court.

As for the Utah law, Google did not confirm it would be the one to bring the law to court but does plan to work with other Internet companies to show Utah officials why the law hurts consumers, violates free speech and is inconsistent with both established U.S. trademark law and the U.S. capitalist system, Google spokesman Adam Kovacevich told The Salt Lake Tribune.

The law, named the Trademark Protection Act, initially was doubted to pass, because of the possibility of litigation. But it showed up late in the Utah Legislature’s session and passed with almost no opposition. Unless a special session surfaces or a court injunction is placed, the law will take effect June 30.

The law would work like this: companies that register trademarks in Utah will be protected from competitors looking to buy the right to get a sponsored link to show up right above the search results, from a keyword you put in the search box.

For example, if you type Overstock.com into Google's search engine, you will get sponsored links to SmartBargains.com, Buy.com and Webspawner.com. The new law would allow Overstock to sue the search engine and the competitor if such ads do show up in Utah-based Internet searches.

“Competition, which generally helps lower prices and benefits consumers, is fueled in part by companies being able to use advertising to draw contrasts with their competitors," Kovacevich said.

But Rep. David Clark, R-Santa Clara, Utah, the House sponsor of the law, argues that the law "places Utah in the front of the pack of U.S. states in trademark protection…I'm sorry they feel it's still the Wild West on the Internet," he said of Google and bloggers who have been blasting the law.

If litigation does occur, it shouldn’t surprise Utah legislators, as they were warned by their own lawyers. A legislative review note said the Trademark Protection Act had a "high probability of being found unconstitutional," according to the State Tribune.

And even Prince thinks the state will probably get sued. "I warned them during the session that this would make Google mad," he said.

Copyright © 2025 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

Roxie Rae Relaunches Site Through XSiteAbility

Roxie Rae has relaunched her site through XSiteAbility.

Federal Appeals Court Vacates FTC 'Click to Cancel' Rule Pending Review

The U.S. Court of Appeals for the 8th Circuit on Tuesday vacated the Federal Trade Commission’s “click-to-cancel” rule aimed at making it easier for consumers to cancel online subscriptions, pending further review.

NYC Adult Stores Lose Challenge to Zoning Law, May Face Relocation

The U.S. Court of Appeals for the 2nd Circuit on Tuesday upheld a lower court’s decision to allow enforcement of a 2001 zoning law aimed at forcing adult retail stores out of most parts of New York City.

FSC Drops Florida AV Lawsuit in Wake of SCOTUS Decision

A U.S. district court judge granted on Tuesday a motion by Free Speech Coalition to dismiss the trade association’s lawsuit over Florida’s age verification law, a case that had been on hold pending the Supreme Court’s recent ruling on the constitutionality of state AV laws.

Ukrainian President Responds to Porn Legalization Petition

President Volodymyr Zelensky responded Tuesday to an OnlyFans model’s petition to decriminalize pornography in Ukraine, stating that he would wait for the legislative process to play out “in accordance with established procedure.”

Only Tax Deductions Joins Pineapple Support as Sponsor

Adult industry accounting firm Only Tax Deductions has joined the ranks of over 70 adult businesses and organizations committing funds and resources to Pineapple Support.

Adult Empire Launches 'Conversations' Podcast Series

Adult Empire has launched a new official podcast series hosted by Nicole Chappelle and Charlie.

Sex Work CEO Launches 'Teams Plan' for AI Assistant

Sex Work CEO has introduced the new Teams Plan for its AI-powered, NSFW text generator, GPTease.

2025 XBIZ Amsterdam Website Launches With Call for Speakers

XBIZ is pleased to announce that the website for its annual European conference, XBIZ Amsterdam, is now live.

NC Governor Vetoes Bill Targeting Adult Industry, Override Possible

North Carolina Governor Josh Stein today vetoed a bill imposing new regulations that adult industry observers have warned could push adult websites and platforms to ban most adult creators and content.

Show More