It’s finally here! A few years after trialling in the US, Google has extended the controversial trademark bidding by opening up the auctioning process to all entities in the sponsored links space. While Google reaps the benefits of a new open space bidding process, this move could fundamentally shift the Search Marketing landscape.

Previously advertisers and brand owners had some sort of insulation to protect and limit their brand related keywords from being auctioned. However, since May 5th 2008, Google has radically changed its trademark policies to encourage competitors to bid on the keywords. The new policy, mirroring the Google’s trademark policy in the US, is certain to rake in plenty of moolah to the world’s biggest search engine.

However, it is the businesses which will suffer owing to inflated CPC prices for their own brand terms. Also, businesses which had previously kept away from internet marketing will be forced to allocate a budget to ensure that their customers aren’t wooed away by the competitors. At the same time, they also have to ensure that the competitors do not take complete liberty of promoting themselves at the cost of their business.

In the UK, some of the larger online businesses like Lastminute, Teletext etc., have already taken up the cause by filing a suit against Google. A few of the smaller companies which are benefiting from Google’s new policies are being bulldozed by their larger counter parts with legal threats.

It’s quite interesting to see how the search marketing industry pans out in the next few weeks.