AdWords advertisers in the US can now use trademarked terms in their ad text as long as they fulfil certain conditions.
Google said that it is changing its policy for pay-per-click ads because it has found that a high number of retailers are resorting to using very generic terms to describe their branded products in their ads.
This will mean that advertisers will be able to mention trademarked terms in their ads without obtaining the explicit approval of the relevant trademark holder.
For example supermarkets selling branded goods or those selling items created to be compatible with branded products will be able to use trademarked terms in their ads.
"We believe that this change will help both our users and advertisers by reducing the number of overly generic ads that appear across our networks in the US," remarked Dan Friedman of Google on the Inside AdWords blog.
He stressed that the change is only applicable in the US at present and did not reveal whether Google intends to roll out the new policy in other countries in the future.
The news came shortly after Google changed its AdWords policy to allow companies in more countries, including UK, to bid on trademarked terms.