On March 8, 2011, the Ninth Circuit in Network Automation, Inc. v. Advanced Systems Concepts, Inc., No. 10-55840, provided much needed clarification of how courts should approach cases of alleged trademark infringement involving Internet keyword advertising.

The court ruled that the eight factor test announced in AMF Inc. v. Sleekcraft Boats, 599 F.3d 341 (9th Cir. 1979), which is traditionally considered in assessing likelihood of confusion, should be applied flexibly, and its factors are not exhaustive.