American Blind has sued Google over its keyword sale of terms in which American Blind claims rights, such as AMERICAN BLIND and AMERICAN WALLPAPER.. The suit was filed in district court in Manhattan. Via News.com.
Google has previously filed a declaratory judgment against American Blind in California, background here. Speaking extremely broadly, there is a ‘first-to-file’ rule, however courts have discretion as to whether to apply it. So it’s kinda a first-to-file guideline.
Decision in Playboy v. Netscape, which states that there is at least a colorable cause of action regarding keyword sales, here.
Results of Google search of term AMERICAN BLIND here.
UPDATE: Coverage here.