[AP] A home decor merchant has dropped a federal lawsuit attacking Google Inc.’s practice of connecting some online ads to trademarks, handing the Internet search leader its latest legal victory on the prickly issue.American Blind & Wallpaper Factory Inc. agreed to abandon the nearly 4-year-old case without receiving any payment from Google, according to a settlement dated Aug. 31. The truce also stipulated that Google won’t change its long-standing policy that let advertisers place ads tied a rival’s trademark.
http://www.thestate.com/technology-wire/story/163439.html
http://www.boston.com/business/technology/articles/2007/09/04/google_ad_trademark_suit_dismissed/
http://hosted.ap.org/dynamic/stories/G/GOOGLE_SETTLEMENTAlso see:

American Blinds drops trademark infringement suit against Google

Score one for Google Inc. After almost four years, American Blinds & Wallpaper Factory Inc. (ABWF) has dropped its federal trademark infringement lawsuit against Google.And Google doesn’t have to pay any money to settle the dispute, according to the agreement. American Blinds also said it won’t file any more lawsuits against Google if Google doesn’t change its current trademark policy.
http://computerworld.com/action/article.do?command=viewArticleBasic&articleId=9034322Google avoids AdWords jury trial as opponent backs downA US retailer has dropped a suit against Google which challenged the trade mark policy of its keyword advertising system, AdWords. American Blinds and Wallpaper Factory (ABWF) has withdrawn its long-running action against Google.
http://out-law.com/page-8440
http://news.zdnet.com/2100-9588_22-6205813.html [Reuters]
http://www.mercurynews.com/breakingnews/ci_6773642