According to Bloomberg reports, the 2006 federal court-dismissed Rescuecom Corp.'s trademark lawsuit against Google has been resuscitated by the Second Circuit Court of Appeals.

Bringing the case back to life by sending it back to the lower court, the three-judge panel of the US Appeals Court said that the dismissal of the lawsuit, by the US District Court for the Northern District of New York, was a slip-up.

In their decision, the Appeals' Court judges wrote: "While we express no view as to whether Rescuecom can prove a Lanham Act violation, an actionable claim is adequately alleged in its pleadings. Accordingly, we vacate the judgment dismissing the action and remand for further proceedings."

The Syracuse, New York-based computer services franchising business Rescuecom had sued Google in 2004, alleging that permitting the advertisers to use the company's trademarked name, as an 'AdWords' search term, desecrated the trademark.

Accusing Google of having given an acute blow to the company business, Rescuecom alleged that Google was serving up ads of competitors whenever users searched for "Rescuecom" in the popular Google search engine.

Meanwhile, a disappointed Google reiterated that it will continue to defend its earlier stand that the selling "Rescuecom" as a keyword to competitors - to initiate their ads with search results - is not a trademark violation under the Lanham Act!