EU Court Rules on Ad Keywords from the Wall Street Journal reports the the highest court in Europe upheld and confirmed a decision by a previous court that bidding on trademarked keywords in search engines does not infringe on European trademark law.
This specific case was between Portakabin, a cabin maker and a competitor, Primakabin. Primakabin was using Portakabin to bid on ads on Google and other search engines. The court ruled that Primakabin was not in violation of European trademark law for bidding on a trademarked name.
This is similar to the EU ruling on the Luis Vuitton keyword case where Google won in court.