DALLAS - American Airlines has dropped its lawsuit against Google Inc. over its search engine directing some users to advertisements for the airline's competitors.
American sued the search giant last year seeking unspecified damages for trademark infringement. Last week, a federal district court judge in Fort Worth dismissed the lawsuit.
Each side agreed to pay its own legal fees, and American recovered nothing from Google, according to an order signed by Judge John McBryde.
Spokesmen for Fort Worth-based American, a unit of AMR Corp., and Google said in identical statements that they were pleased to "resolve these claims on mutually satisfactory terms."
American was upset that when Google users entered search terms such as AAdvantage, the trademark name of its frequent-flyer program, the results included websites that had no connection to American.
The airline said the results could confuse consumers and divert customers from its own website.
Google compared its policy to grocery stores that give shoppers a coupon for Minute Maid orange juice if they buy Tropicana, or magazines that publish a Ford ad on the page opposite from a story about Chevrolets.
"Of course they are seeking to 'hijack' or 'divert' consumers who have indicated an interest in their competitors' products," Google lawyers wrote in a motion seeking to dismiss the lawsuit. As long as the companies don't falsely identify a product or service, it's legal, they said.
The Internet company has settled similar cases brought by other U.S. companies, including those brought by insurer Geico and retailer American Blind & Wallpaper Factory Inc., but lost cases in France.
