Case: 8:09-cv-00188 Document #: 1 Date Filed: 06/08/2009 Page 1 of 8

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF NEBRASKA

) CASE NO.
KEYEN FARRELL )
)
Plaintiff, )
)
vs. ) COMPLAINT
)
JEREMY SCHOEMAKER )
)
)
Defendant. )

COMES NOW the Plaintiff, Keyen Farrell ("Farrell"), and for his Complaint against

Jeremy Schoemaker ("Schoemaker") states and alleges as follows:

PARTIES

1. Schoemaker is a resident of Lancaster County, Nebraska and is the President of

ShoeMoney Media Group, Inc.

2. Farrell is a resident of the State of New York.

JURISDICTION AND VENUE

3. This Court has jurisdiction over the subject matter of this action pursuant to 28

U.S.C. § 1332 because the action is between citizens of different states and the amount in

controversy exceeds the sum of $75,000.00 exclusive of interest and costs.

4. Venue is proper in this district because Schoemaker resides within Lancaster

County.

FACTUAL ALLEGATIONS

5. When internet users enter search terms in ww.google.com. Google's search

engine displays advertisements of various entities that may be of interest to the internet user. In

conjunction with this, Google sells contextual advertising through a program called "AdWords."

"AdWords" allows advertisers to bid for their advertising hyperlink to appear above or next to

Google search results when internet users enter specific search terms in a Google search.

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 Case: 8:09-cv-00188 Document #: 1 Date Filed: 06/08/2009 Page 2 of 8

6. Farrell has been employed by Google, Inc. ("Google") in New York, New York

since September 17, 2007. At all material times hereto, Farrell has been employed as an
Account Coordinator at Google.

7. An "AdWords" advertising hyperlink contains the text of an advertisement. These

are known as sponsored links. If an internet user is interested, the user can click on the hyperlink,

which takes the internet user to the advertiser's website.

8. On or about January 22, 2009, Farrell opened a Google "AdWords" account with the

financial sponsorship of his father, John J. Farrell, and under the name John J. Farrell, for the

purpose of advertising the website, ww.myincentivewebsite.com.

9. Farrell created his list of thousands of keywords to be included in his Adwords

account by searching ww.google.com/sDonsoredlinks using generic terms such as "internet

marketing". The sponsored links generated by this search were transferred to an Excel

spreadsheet and the visible URLs were then refined as a group of keywords through use of generic

Excel filters and various concatenation formulas. These same filters and concatenation formulas

were also used to create thousands of corresponding Ad Groups and advertisements. Each

grouping of keywords and advertisements is known as an Ad Group. Using this automated

process, it was possible to mass-produce thousands of small, tightly themed Ad Groups, each of

which contained a small number of keywords.

10. This list of thousands of keywords, Ad Groups, and advertisements was contained

on a large excel spreadsheet prepared by Farrell and commonly known as a bulksheet. This

bulksheet was uploaded to the AdWords system using AdWords Editor, a free desktop softare

Google provides to advertisers to enable bulk changes to their AdWords account. Once the entire

campaign was uploaded via AdWords Editor, AdWords Editor was used to duplicate the campaign

to allow for various campaign-level settings. By duplicating the campaigns, every Ad Group
contained in the campaign was automatically duplicated by AdWords Editor. This resulted in

2
 Case: 8:09-cv-00188 Document #: 1 Date Filed: 06/08/2009 Page 3 of 8

several thousand duplicate Ad Groups. In most cases, AdWords Editor created 4 duplicate Ad

Groups from each original Ad Group.

11. Google has an internal review policy that it does not allow advertisers to use a

registered trademark in the text of sponsored links. When a keyword is submitted for an "AdWords"

account, it is Google's responsibility to determine whether the keyword is a registered trademark in

order to prevent the trademark from appearing in the text of the advertisement.

12. Farrell relied upon this internal review policy at Google in setting up his "AdWords"

account. Without Farrells knowledge, Google's internal review process failed to prevent the term

"shoemoney" from appearing in the text of some of the advertisements associated with the
"AdWords" account Farrell opened on January 22, 2009.

13. Farrell used an advertising technique offered by Google known as Dynamic

Keyword Insertion advertising. In this type of advertising, the keyword in the AdWords account is

inserted into the advertisement whenever someone searches on it. When an advertisement with

Dynamic Keyword Insertion is created, a special headline for the advertisement is created. Then

the Google system automatically inserts the keyword in your account into the headline of the
advertisement when it is searched. Farrell did not create a static advertisement that explicitly

contained the term "shoemoney"; instead the term was inserted dynamically and without Farrells

knowledge. Farrell merely provided the syntax of the advertisement headline that would allow the

keyword to be inserted into the advertisement if and only if the Google system deemed the keyword

untrademarked.

14. At no time did Farrell intend to infringe upon the ShoeMoney trademark in any way.

15. Farrell first learned of the ShoeMoney mark on or about March 31, 2009 when

counsel for Schoemaker and ShoeMoney Media Group sent Farrell a cease and desist letter. A

true and correct copy of this letter is attached hereto and incorporated herein as Exhibit A.

16. On March 31, 2009, in response to the cease and desist letter, Farrell informed
ShoeMoney's counsel that the term "shoemoney" appeared in the advertisement because it was a

3
 Case: 8:09-cv-00188 Document #: 1 Date Filed: 06/08/2009 Page 4 of 8

keyword insertion advertisement. A true and accurate copy of that email is attached hereto and

marked as Exhibit B.

17. As a result, on that same day, Farrell voluntarily changed the "Ad Words" account

registered to John J. Farrell so that the term "shoemoney" was no longer associated with that

account. In addition, Farrell complied with the request made by Schoemaker and ShoeMoney

Media Group to provide information relating to his "AdWords" account at Google.

18. Despite Farrells swift and thorough response to these requests, on or about April 2,

2009, counsel for Schoemaker and Shoe Money Media Group sent Farrell a letter demanding that

he provide a written apology to Schoemaker and ShoeMoney Media Group and pay ShoeMoney

Media Group $10,000 by the end of business on April 6, 2009. A true and correct copy of this letter

is attached hereto and incorporated herein as Exhibit C.

19~ Farrell did not take any action to circumvent federal law and/or the Google policy

to allow the SHOEMONEY mark to appear in the text of the sponsored links of the "AdWords"

account. Farrell has consistently informed counsel for Schoemaker and ShoeMoney Media

Group that Google's internal review process failed to prevent the term "shoe money" from appearing

in the text of the advertisements associated with the "AdWords" account without Farrells

involvement whatsoever.

20. On April 7, 2009, ShoeMoney Media Group, Inc. filed suit against Keyen Farrell and

John Farrell alleging that the Farrells infringed on its trademark, violated certain Nebraska statutes,

and they tortiously interfered with its business ("Action"). The Farrells have categorically denied

such allegations.

21. After filing the Action, Schoemaker admitted in a statement made on his website

that he lacked knowledge about how the alleged display of his unauthorized trademark occurred.

Nevertheless, Schoemaker published the false and defamatory statement that Farrell "bypassed"

Google's procedures in an effort to infringe on his trademark. A true and correct copy of this

statement is attached hereto and incorporated herein as Exhibit D.

4
 Case: 8:09-cv-00188 Document #: 1 Date Filed: 06/08/2009 Page 5 of 8

22. Schoemaker made false and defamatory statements in his communication with

Denny Sullvan ("Sullvan") who operates the website, searchengine/andcom, when he told

Sullivan that Farrell is a "corrupt employee". Sullivan stated:

"Talking with Schoemaker, he stressed that he assumes Google itself had no

knowledge of Farrells actions, nor is he filing suit against Google itself.

'Our goal in this is not for financial gain but to defend our
trademark that we have spent many years building trust with.
People (commenting on) the TechCrunch story talk like Google is
going to write me a big check, but that is just silly. This is not going
to be a cash flow positive thing for us i am pretty sure. And i do not
honestly think nor do we have any evidence that Google was
involved or had knowledge of this corrupt employee.'" (Quoting
Schoemaker).

A true and correct copy of this statement is attached hereto and incorporated herein as Exhibit

E.

23. Farrell has been subjected to public scorn and ridicule as a result of

Schoemaker's public comments.

24. In May 2009, Google released the following statement regarding the lawsuit
brought by Schoemaker and ShoeMoney Media Group against Farrell and John J. Farrell to

Sullivan's website, Search Engine Land:

"The privacy and security of our users and advertisers' account information is a
top priority for us, and our internal policies prohibit any use of non-public
advertiser data for personal gain. After a thorough investigation, we found no
indication that any employee purposefully tampered with or circumvented any of
those policies, processes or procedures, including our trademark filtering
process. Due to an unrelated human error, however, some ads with the
"Shoemoney" trademark in the text were unintentionally allowed to run. The error
has since been corrected, and the ads ran only for a short time." (Emphasis
added.)

The author of the website comment also stated:

"Talking with the company a bit further, it stressed that the human error was on
the part of another AdWords employee, not Keyen FarrelL, who is the defendant
in the case Jeremy "ShoeMoney" Schoemaker has filed involving the use of his
trademarks in AdWords copy." (Emphasis added.)

A true and correct copy of this statement and comment are attached hereto and incorporated

herein as Exhibit F.

5
 Case: 8:09-cv-00188 Document #: 1 Date Filed: 06/08/2009 Page 6 of 8

25. Google has since affirmed that the statement made on Sullvan's website is true.

26. On or about May 21, 2009, counsel for Farrell and John J. Farrell sent a letter to

counsel for ShoeMoney Media Group, Inc. advising them of Google's statement set forth in Exhibit

E. Consistent with Google's statement, and in attempt to avoid further damage to Farrells

reputation, ShoeMoney was requested to acknowledge that the trademark terms were displayed in

the "AdWords" account through no fault of Farrell and John J. Farrell, dismiss the Action and take

corrective action. A true and correct copy of this letter is attached hereto and incorporated herein

as Exhibit F.

27. Neither Shoe Money or Schoemaker has responded to that letter, nor have they

acknowledged that the trademark terms were displayed in the "AdWords" account through no fault

of Farrell and John J. FarrelL.

COUNT I
DEFAMATION

28. Farrell incorporates by reference paragraphs 1-27 of the Complaint as if set forth

fully herein.

29. Schoemaker has made false and defamatory statements concerning Keyen Farrell,
including but not limited to the statements that Farrell "bypassed" Google's procedures in an effort

to infringe on his trademark and that Farrell is a "corrupt employee." See Exhibits D and E.

30. Schoemaker published false and defamatory statements concerning Farrell to third

parties including publication on the Internet.

31. Schoemaker has made false statements concerning Farrell that are defamatory per
se because the defamatory statements impute an unfitness to perform the duties of his

employment at Google and/or the defamatory statements prejudice Farrell in his profession or

trade.

32. Schoemaker was grossly negligent or wilful in making the defamatory statements

concerning FarrelL.

6
 Case: 8:09-cv-00188 Document #: 1 Date Filed: 06/08/2009 Page 7 of 8

33. At this time Farrell has suffered general damages as a result of Schoemaker's

defamatory statements.

COUNT II
TORTIOUS INTERFERENCE WITH A BUSINESS RELATIONSHIP

34. Farrell incorporates by reference paragraphs 1-26 of the Complaint as if set forth

fully herein.

35. Farrell has a valid business relationship with Google by virtue of the fact that he

has been employed at Google since September 17, 2007.

36. Schoemaker knew that Farrell was an employee of Google, and thus he knew

that the valid business relationship existed between Farrell and Google.

37. Schoemaker interfered with Farrell's valid business relationship with Google

when he falsely stated that Farrell "bypassed" Google's procedures in order to infringe on his

trademark and that Farrell is a "corrupt employee." See Exhibits D and E.

38. Schoemaker intentionally interfered with Farrells valid business relationship with

Google because his statements were made with the purpose of interfering or with knowledge

that interference was substantially certain to occur and/or were made with intent to have Farrell

terminated by Google.

39. Schoemaker's interference with Farrells valid business relationship with Google

was unjustified.

39. Schoemaker's interference with Farrells valid business relationship with Google

proximately caused damage to FarrelL.

WHEREFORE, Farrell prays for judgment against Schoemaker in an amount to be

established at trial along with all other relief this Court deems just.

7
Case: 8:09-cv-00188 Document #: 1 Date Filed: 06/08/2009 Page 8 of 8

DEMAND FOR JURY TRIAL

Plaintiff demands trial by jury to be held in Omaha, Nebraska.

DATED June 8, 2009.

KEYEN FARRELL, Plaintiff

By: /s/ J. Scott Paul

J. Scott Paul, #16635
Michaela A. Smith, #22737
McGrath, North, Mullin & Kratz, PC LLO
First National Bank Tower, Suite 3700
1601 Dodge Street
Omaha, NE 68102
(402)341-3070
(402)341-0216 (fax)
ipaul(cmcgrathnorth .com

8
 Case: 8:09-cv-00188 Document #: 3 Date Filed: 06/08/2009 Page 1 of 1

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF NEBRASKA

) CASE NO. 8:09-cv-188

KEYEN FARRELL )
)
Plaintiff, )
)
vs. ) SUPPLEMENT TO COMPLAINT
)
JEREMY SCHOEMAKER )
)
)
Defendant. )

COMES NOW the Plaintiff, Keyen Farrell ("Farrell"), and for his supplement to the

Complaint (Document No.1) attaches Exhibit A, Exhibit B, Exhibit C, Exhibit D, Exhibit E, Exhibit

F and Exhibit G hereto.

DATED June 8, 2009.

KEYEN FARRELL, Plaintiff

By: /s/ J. Scott Paul

J. Scott Paul, #16635
Michaela A. Smith, #22737
McGrath, North, Mullin & Kratz, PC LLO
First National Bank Tower, Suite 3700
1601 Dodge Street
Omaha, NE 68102
(402)341-3070
(402)341-0216 (fax)
ipaul(cmcgrathnorth .com

1
Case: 8:09-cv-00188 Document #: 3-2 Date Filed: 06/08/2009 UPage1.ôi'2

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 Case: 8:09-cv-00188 Document #: 3-3 Date Filed: 06/08/2009 Page 1 of 1

From: Keyen Farrell .okeven.farell~~ai1.com~

Date: Tue, Mar 31, 2009 at 1:59 PM
Subject: Re: Shoemoney Trademark --- Cease and Desist and Demand Letter
To: "COOPER, PATRICK" .oPCOOPER~fraserstrvker.coiW .

Patrick,

The ad you cited only contained the shoemoney name because it is a keyword insertion ad that
inserts any query into the headline.

Shoemoney is completely unimportt to our keyword strategy. The keyword was received in a
thousands of
keyword dump - it is one oftens of keywords we bid on. In fact it does not generate
revenue for us.

That said, we've removed all keywords related to your trademark. This means that no ads will
show on the query.

On Mar 31, 2009, at 11 :49 AM, "COOPER, PATRICK" .oPCOOPER~FraserStryker.com~

wrote:

Mr. Farrell -

Please see attached letter.

Patrick S. Cooper
Fraser Stryker pc LLO
500 Energy Plaza
409 South 17th Street
Omaha, NE 68102
Direct Dial 402.978.5376
Fax 402.341.8290
pcoopertmfraserstrvker.com

~ ~HIBIT

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;hoeMoney Me~aqf:'W:à'~-~.æmreib~ll~-5 Date Filed: 06/08/2009 Page 1 of 4 Page i of 4
Shoemoney Tools Photos Podcasts Kindle Edition Store Located In Lincoln Nebraska

Shoemoney . Skils To Pay The Bils

By Jeremy Schoemaker

Home Contact Advertising Bio Disclaimer Free Shirt Friday Following S

ShoeMoney Media Group Vs Keyen Farrell

Posted 2 months ago by Jeremy Schoemaker 19 Comments
_NV_~._~..~_,..~_~h'"___""'''",__y~""W'_'''_~''''~~__""__~__,_"",,,__Y_'~.=..=.._.

~
I actually had no intentions of discussing the case on my blog but after getting 80+ press inquiries I
asked our attorney to help us put together an offcial statement.

Being on the front page of Techcrunch, Search Engine Land, John Chow, Washington Post and
other major major outlets wil do that...

Please feel free to contact me using the contact us link. Thank you all for your support in this
matter. I really appreciate your words of encouragement.

Its never easy when things have to come to a court room to get results.

Omaha, NE - "Shoemoney" is the registered trademark of ShoeMoney Media

Group. The Group was founded by Jeremy Schoemaker.

Recently, a competitor of ShoeMoney Media Group began posting infringing

i-""
advertisements online through the Google Adwords program. The
advertisements used the word "Shoemoney" in their text. These unauthorized
'-__,~
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i
"Shoemoney" advertisements deceptively led Google users to a web site that ¡ Reader Fave

was completely unrelated to ShoeMoney Media Group. ShoeMoney Media 11_1

My Top 10 We
Group has learned that Keyen Farrell, a Google Adwords account specialist, 361 Comments
was affliated with the offending web site, ww.myincentivewebsite.com.
John Reese Ii
To protect its Registered Trademark, ShoeMoney Media Group filed suit 63 Comments

against Farrell on April 7, 2009. According to Mr. Schoemaker, "ShoeMoney 10k ppc expe
Media Group has spent considerable time and money to build its brand and 155 Comments

reputation in the market, and it wil continue to vigorously protect its intellectual
How To Get ß
property rights and wil aggressively pursue those persons who attempt to use 163 Comments
its copyrights and trademarks for their own commercial gain." The lawsuit is
What People
docketed in Nebraska's Douglas County District Court as Doc. 1094 No. 482.
62 Comments

! --
. EXHIBIT

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It is not yet known how Mr. Farrell bypassed Google policy preventing
i 188 Comments
advertisers from displaying trademarked terms in the text of their ads, nor is it ~~~._---
I
known whether this was an isolated act of infringement or part of a larger i Moving To Po
599 Comments
pattern of infringing conduct.
How To Outsc
~omments are disabled 178 Comments

Making Mane:
19 comments. What say you? RSS TwitThis Email ShareThis 174 Comments

~ Previous Post Aeai Berry 011

Next Post ~
From FTC
162 Comments

Who's talking about it?

Hope And Ch;
Google Employee Sued By ShoeMoney for TOS Violation (( MUL TIMAP .ME 152 Comments
April 15, 2009
How To Beeoi
Google Employee Sued For TOS Violation I Adultresources.lnfo Online Bioggi
April 15, 2009 137 Comments
L______~.._.._"__.,"~.A..~_

Google Employee Sued For TOS Violation i Press Release -Reputation Management
April 14, 2009 ,

Google Employee Sued For TOS Violation i Search-Internet Marketing I flt l ~

14, 2009

Iltllt
April

Google Employee Sued For TOS Violation: virtual gambling

April 13, 2009 I
;
wit ~ l
,

Google Employee Sued For TOS Violation I SEa Ranking, Marketing and Tactic
April 13, 2009

Google Employee Sued For TOS Violation I News I Adsense Money Making Blog For Advice On Racking In
The Cash With Adsense
April 13, 2009

Google Employee Sued For TOS Violation I Corporate Internet Reputation Management
April 13, 2009

Google Employee Sued For TOS Violation - News: Everything-e

April 13, 2009

Google Employee Sued By ShoeMoney for TOS Violation )) PageTraffic SEa Bl09
April 13, 2009

TaT: LesestofffOrOstern...
April 9, 2009

ShoeMoney, su demanda y el escãndalo en Google AdWords I JuanCash.com ¡'l n

April 9. 2009

i..._./I..___.. ~i.~~_~___. ___I'"t\t\t\It\A 1t\0/_1.__________ ___..3:. __.u___ __. L______ .L.__._.11/ r In I'"t"nn.
fioeMoney Medi~~~Y1~~f88ell ~~-5 Date Filed: 06/08/2009 Page 3 of 4Page 3 of 4
Google Employee Alleged To Have Bypassed AdWords Trademark Policy For Own Benefit
April 9, 2009

Shoemoney vs. Google Employee? it's on Like Donkey Kong I Blippltt

April 9, 2009

Articles about Internet Marketing Expert as of April 9, 2009 i The Lessnau Lounge
April 9, 2009
i
¡
;
L....M....__..._
ShoeMoney Vs Keyen Farrell
April 9, 2009

Most F
Internet Marketing Guru Sues 'Keyword Squatter' i Klkablnk News
April 9, 2009

Earn More With Adsense)) ShoeMoney Media Group Vs Keyen Farrell

April 9, 2009

ShoeMoney Media Group Vs Keyen Farrell I Free Money Guide

April 9, 2009

Comments are closed.

Shoel

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MEMBliRLQQlN,,?laEçQME_AME.MßßR,?:
GJ'-9~Je,EmpiQ~ee,Aii~d TQ
Have By-passed AdW ords Trademark Policy For Own
Benefit
\pr 8, 2009 at 3:01pm ET by Dany Sullvan

Nell-known internet marketer Jeremy "ShoeMoiiey" Schoemaker has filed suit against Keyen Farell, apparently a
Joogle employee alleged to have used Schoemaker's US-registered trademark in search ads on Google. While issues
)ver trademarks in search ads are heating up, the bigger issue in the case is why Google itself didn't tae action to stop
he ads and whether an employee did indeed access Schoemaker's AdW ords account to gain competitive data.

Joogle's trademark policy allows for trademarks to "trigger" ads - make ads appear when a trademark word is
nvolved in a search query - but it prohibits advertisers from using trademarks in the title or description of ad copy.
rhat s the core of Schoemaker' s ç.91J-il!ilt (PDF fie 1 - that ads were showing for his nickname, "ShoeMoney,"
ivhich is also the name of his web site and a registered trademark.

~or example, here's a screenshot Schoemaker provided of the ad using "ShoeMoney" in the title from last week:

, EXHIBIT

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I

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These ads have been showing for the past few months, Schoemaker told me via 1M. They shouldn't have, given that
Schoemaker previously had filed a trademark complaint action with Google back in 2007. On November 1, 2007,
Schoemaker was told (according to an email he forwarded to me):

Google AdWords Trademark Team Thu, Nov 1,2007 at 4:13 PM

Hello Jeremy,

Than you for sending us your trademark complaint letter. Your complaint has been processed and the ad
texts in question no longer include your trademark: SHOEMONEY. Please note, we only processed the
exact trademark you submitted. If you would like us to investigate variations or misspellngs of your
trademark, please supply us with a list of the exact varations or misspellings and we wil review them.
Please do not hesitate to contact us with any additional questions or concerns.

That prevented anyone from using the word "shoemoney" in their ads, as you can see is stil the case in the screenshot
below, when I tried to create an ad with the word earlier today:

1.4-_./I..,....._k.._,.:__l"'_,. "'_~/""__1"1_ ,,~_l_'rl3a. 1.",r..nnni3A n,1..'r_..,.n 1 '7'1,0 (;/Q /'(\(\0

Joogle Employee§im~'§&ay~18as~é\H*ffn:il:r~aëem~8IFie¥rd~~t Page 3 of 1ßage 3 of 10

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.. ...
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Ic¡¡¡¡~ílöfliií¡¡r"'~"'''-'''''

liede:

,0 how was it that these ads started showing? Somehow, the advertiser got an exception or found some other way
round Google's block. Since the advertiser also appears to be a Google employee, that raises senous issues about
Joogle's own internal policing.

ls the T~çhÇniçh_f!iç.ls! on the case explains, at first Schoemaker couldn;t tell who was behind the ads. While the ad
ointed at myincentivewebsite.com, contact detals for that site were masked using a privacy address for the domai
ame registration. So Schoemaker got a subpoena demanding that that the site's web host hand over the advertiser's
ame and contact details, he told me.

lccording to Schoemaker's lawsuit, the advertiser was Keyen Farell. As TechCruch explains fuer, Schoemaker
aid he spoke with Farell, who apparently denied any wrongdoing. As par ofthat conversation, Farell apparently
hared a list of terms he was tageting - which raised alarms with Schoemaker, as they were similar to his own list.

)oing more checking, Schoemaker found a LinkedIn profile where Farell listed himself as working as a Google
ldWords account strategist. That's since changed (Schoemaker says it was changed the day he filed suit), but here's
ow it looked from a screenshot that Schoemaker sent me:

4-_.lln.on..,.~.o_I":_oln..A l"u"",,/n-__rrl.o .c-l_l_"Cr__ i..u_,.nn",. ......I'__An 1 '7'l.cn iC 10 i",nnn

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arell is listed as an employee with Google's New York offce, so all indications are that he does indeed work for
'oogle. When I called and selected him by name from the automated company directory, I got to his voicemail that
ared, "Hi, ths is Keyen with Google." Farell was also f~atmed in a Spring 2006 aricle from Colby College about
JW he used Google's ad systems to run an online business that he said put him "in the top one percent in income in the
'.S." If that was the case, of course, it makes you wonder why he apparently later worked what appears to be a low-
:vel job at Google.

alking with Schoemaker, he stressed that he assumes Google itself

had no knowledge of Farell's actions, nor is he
ling suit against Google itself. '

Our goal in this is not for financial gain but to defend our trademark that we have spent many years
building trust with. People (commenting on) the TechCruch story tak like Google is going to wrte me a
big check, but that is just sily. This is not going to be a cash flow positive thing for us I am prett sure.
And I do not honestly think nor do we have any evidence that Google was involved or had knowledge of
this corrpt employee

:igree - Google probably wasn't aware of what was going on. But it stil raises questions about how people are able
bypass trademark blocks and how secure AdW ords accounts are. Clearly an AdW ords specialist would need the
)i1ty to review client accounts, but it's stil distubing to think that they could be snooping for reasons unconnected
ith actually helping those clients.

s for Farrell, Schoemaker's suit seeks:

· An injunction preventing the use of "shoemoney" in ad text

· An accounting of revenue earned by using the "shoemoney" term
. Damages to be determined at trial
. Attorney fees and costs

ve asked both Google and Farell for comment but haven't heard back from either yet.

)stscript: Google has sent:

tn'//c:p:i:rr.hp.nuil1Pl~nr1 l"n11/O'nnO'l~_~'l'llnuø'Lh"..nC'....,. n,...r~~,... 1 "7.-cn .r In I" "",.

Joogle EmployeÊ~~~s~'§&lß~~asSt~f1T~emat8lRelrc~)~lø~it Page 5 of 1.ßge 5 of 10
Whle we take this kind of allegation seriously, we're not able to comment on specifics right now.
1~:,,,,~,"'~m-=',,~..,,'I~~"'~""~_I'1'~"""", .

.
~aniSulliyan is editor-in-chief of Search Engine Land. He's a widely cited authority on search engines and search
iarketing issues who has covered the space since 1996. Dany also oversees Search Engine Land's SMX: Search
1arketing Expo conference series, maintains a personal blog called Daggle and can be followed on Twitter here.

~e .more articles by Dal-ySullivan ::

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. Video, Legal: Trademarks, Top News sections ofthe Members Librar where ths story is fied. Members

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assed AdWords Trademark Policy For Own Benefit

:ohn, April81h~ 2009-t;tS-;.~mn_EI:

'the employee's alleged actions aren't-

A breach of trust
Grounds for dismissal

n.en what are they?

)ugdale, Apxi12th..20.Q at 12: 04. am.ET:

row, this story is amazing and a little scar at the same time. Sounds like Jeremy has a prett good case.

tn.ffo;p!:rl'hpnn;npl!:nrl f'fun/nnnnl.._......1n".... i."..nnn~,: n,:n.~_,:" 1 '7")co r In ,,,,,,,\n

Google EmploYe1Wel~8~,~pambMWrW~ !!edeme-§t~~~dCl~~fit Page 6 of 1 dage 6 of 10
If this actually goes to trial and Google has to show some of their systems in cour it wil be very interesting. Perhaps
Google's black box will be a little less black after this.

Chris Smith, April 9th. 2009 at 10:24 am ET:

:premium member since 01/2009

I have a theory as to how the trademark block was bypassed:

Google may allow ads to taget trademark keywords, while the system checks against trademarks in static text.

However, I think that the ad may have been set up dynamically to parse the search keyword into the ad copy -
something their blocks may notve been set to detect. Yet.

. ::=:~:::::::: ils k~d. it m~t 00 ~mting ~ ooUro koop mbs on wI fue

activity of those trying to profit off of his name. Hope this goes well for him.

JezC, April iOth. 2009 at 10:12 am ET:

§Chris Smith" Dynamic Keyword Insertion can block trademarked terms as Keywords. It isn't a perfect mechansm,
though.

A.dditionally, human error can result in similar problems. A client of mine with a UK national brand was unable to use
their own name, while a US dentist was advertising with the trademarked name in the UK (and was wildly unlikely to
:ittact customers for a radically different product). Mistaes happen, as well as intentional activity. Both problems
were caused by Google staff checking boxes adjacent to the ones that should have been checked.

The article describes something that sounds intentional and malicious, though.

. '~~'!l~~~..~~""~-i_i-="'i"I'-im'~'f"'~~~~=_,,~..., .. _._ --.....--_._-..-.,.~=._.._.__....._......¡,~=u..,!~~_,..

..
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G.pQgle_E.inds N.g.mD3lltMislls.~
In Shoemoney Trademark Case
May 18,2009 at 5:59pm ET by Danny Sullvan

Earlier this month, my Why Hasn't Google Cleared. Fired Or Suspended Accused AdWords Employee? article asked
why Google hadn't yet publicly commented about accusations that one of their employees may have abused the
AdWords system for his own benefit. Now the company is speakig up - and saying it has found no wrongdoing.

Google's sent me this statement:

The privacy and security of our users and advertisers' account information is a top priority for us, and our
internal policies prohibit any use of non-public advertiser data for personal gain. After a thorough
investigation, we found no indication that any employee purposefully tampered with or circumvented any
of those policies, processes or procedures, including our trademark fitering process. Due to an unelated
human error, however, some ads with the "Shoemoney" trademark in the text were unintentionally allowed
to run. The error has since been corrected, and the ads ran only for a short time.

Talking with the company a bit fuher, it stressed that the human error was on the par of another AdWords employee,
not Keyen Farell, who is the defendant in the case Jeremy "ShoeMoney" Schoemaker has filed involving the use of his
trademarks in AdWords copy.

Taking over a month to investigate the situation and make this needed comment stil seems a long time, but at least we
got there in the end.

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 Google Finds Nt(R~tl ~~MSEJ!b§l~o~láMs~ ~~e Date Filed: 06/08/2009 Page 2 of 7 Page 2 of7
Meanwhile, Schoemaker informs us today that that the defense has withdraw its motion for dismissal, so the case wil
stay in Nebraska and move into the discovery process.

Dany Sullvan is editor~in-chief of Search Engine Land. He's a widely cited authority on search engines and search
marketing issues who has covered the space since 1996. Danny also oversees Search Engine Land's SMX: Search
MJiik~t-in...Ei¡nQ.ç..nference_series, maintains a personal blog called Daggl and can be followed on Twitter lier~.

See more articles by Danny Sullvan :;

Share, Bookmark & Discuss This Article

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ONE COMMENT ON Goo Ie Finds No Data Misuse In Shoemone

davethetruth, May.J8Jb.4Q.09.-t 2~.11.im ET:

Wow, big surrise that Google wasn't able to find any ilegal activity. Kind of reminds me of all the times they haven't
been able to find any CLICK FRAUD, price gouging or unfair business practices loll

Got to love when the corporate monster shows its teeth!

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ìoogle Firtds No él¿ila~l:~¿tt§b~mone~dcß9lWWa,~ Date Filed: 06/08/2009 Page 3 of 7 Page 3 of 7
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Google Finds ~l~~-bb~~m~&;JiW~Is~se Date Filed: 06/08/2009 Page 7 of 7 Page 7 of7
~ 2009 Third Door Media, Inc. All rights reserved. Google, Yahoo & Microsoft logos trademark respective companies and used wìth
pennission.

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 Case: 8:09-cv-00188 Document #: 3-8 Date Filed: 06/08/2009 Page 10f 3

Me Gl\TH
NOl\TH
ATTORNEYS AT LAW

J. SCOTT PAUL Plne (402) 341.3070

Fax (40) 341-0216
E-mail apaulOmcgrthnorth.com

May 21,2009

Via Emall & U.S. Mall

Patrick S. Cooper . EXHIBIT

Fraser Stryker PC LLO I G" "

500 Energy Plaza
409 S. 17th Street I
Omaha, NE 68102
PCOOPERtQFraserStryker.com

Re: Shoemoney Media Group, Inc. v. Farrell;

http://searchengineland.com/google-clears-employee-in-shoemoney-case-19481

Dear Pat:

I presume you are aware of your client's ongoing efforts to keep the internet updated
regularly about the events of this case. Nevertheless, i wanted to make sure that he shared with
you the comment that recently Google released to the blog From Search Engine Land. Here is
the post from that website that contains Google's comment: .
"The privacy and security of our users and advertisers' account information is a
top priority for us, and our internal policies prohibit any use of non-public
advertiser data for personal gain. After a thorough investigation, we found no
indication that any employee purposefully tampered with or circumvented any of
those policies, processes or procedures, including our trademark filtering
process. Due to an unrelated human error, however, some ads with the
"Shoemoney" trademark in the text were unintentionally. allowed to run. The error
has since been corrected, and the ads ran only for a short time."

The author of the website comment also stated:

"Talking with the company a bit further, it stressed that the human error was on
the part of another AdWords employee, not Keyen Farrell, who is the defendant
in the case Jeremv "ShoeMonev" Schoemaker has filed involving the use of his
trademarks in AdWords copy."

I believe this is Google's comment and is consistent with what I have been tellng you.

After the filing of this lawsuit, your client has admitted in a statement made on his
website that he lacked knowledge about how the display of his unauthorized trademark

McGrath Norh Mulln & Krtz, PC ll

Pint National Tower, Suite 3700 1601 Do Strt Omha, NE 68102 WW.mcgrathnorcom
 Case: 8:09-cv-00188 Document #: 3-8 Date Filed: 06/08/2009 Page 2 of 3
Patrick Cooper
May 21, 2009
Page 2

occurred, yet that did not stop him from making the unfounded assumption that Google's'
procedures were "bypassed" by Keyen Farrell, stating:

"It is not yet known how Mr. Farrell bypassed Google policy preventing
advertisers from displaying trademarked terms in the text of their ads, nor is it
known whether this was an isolated act of infringement or part of a larger pattern
of infringing conduct. II .

Google's response should assure you that neither Keyen or John Farrell breached any statutory
or common law duties to Shoemoney, much less caused any damage to your client.

Equally troubling, however, is your client's use of defamatory remarks when referring to
the Farrells and in particular Keyen FarrelL. For example, another website:
searchenginelandcom, quoted your client as referring to Keyen Farrell as a "corrupt
employee"::

"Talking with Schoemaker, he stressed that he assumes Google itself had no

knowledge of Farrell's actions, nor is he filng suit against Google itself.

Our goal in this is not for financial gain but to defend our
trademark that we have spent many years building trust with.
People (commenting on) the TechCrunch story talk like Google is
going to write me a big check, but that is just sily. This is not going
to be a cash flow positive thing for us I am pretty sure. And I do not
honestly think nor do we have any evidence that Google was
involved or had knowledge of this corrupt employee."

Keyen Farrell has been subjected to public scorn and ridicule as a result of your client's public
comments. Bloggers such as The Next Corner have stated:

"Keyen Farrell needs a new reputation

April 8, 2009
Wow, how can you destroy your early career in no time. Just ask Keven Farrell, a
young, just started Google employee on the Adwordsdepartment. The bia story
is about Keyen Farrell & his website or company or himself buying ads with a
trademarked term in it.
If you look at the top 10 In Google on his name, 6 of the 10 are about this story."

Additionally on the website John Chow dot com, John Chow commented on your client's lawsuit
stating:

"If Mr. Farrell does Indeed work for Google, I have a feeling he won't be working
there much longer. That wil be the least of his worries once Shoe gets done with
him."

The statement from Google should now clarify what occurred. Accordingly we call on
you to immediately dismiss your client's lawsuit against the Farrells. To avoid further damage to
the Farrell's reputation, we also demand that your client acknowledge that the trademark terms

McGth North Mullin &. Kru, PC LL

Pint National Tower, Suite 3700 1601 Do Strt Omaha, NB 68102
ww.mClthnorth.c:om
 Case: 8:09-cv-00188 Document #: 3-8 Date Filed: 06/08/2009 Page 3 of 3
Patrick Cooper
May 21,2009
Page 3

were displayed through no fault of Keyen or John Farrell and we ask that your client publicly
apologize to them on his website for the slanderous comments he has made over the internet
and in the press and disseminate this apology using the same mailng lists and media channels
that he previously used to publicize his complaint against Keyen l=arrell.

Thank you for your prompt attention to this matter.

J. Scott Paul

JSP/tao

McGrath Nort Mulln &. Krtz PC ii

Pint National Tower, Suite 3700 1601 Do Stiect Omaha NB 68102
ww.mcgrtbortcom