[danpat]

We looked into this a while back, we're in a niche electronics market. Similar situation.

Basically, if they're using a trademarked term in their ad, then you'll have grounds for protest. Using your company name in the ad that is displayed is generally against the rules.

If they simply have an ad for their company show up for a keyword search for your company name, then that's generally OK, they're not displaying your trademark.

Examples:

  You: WidgetCo
  Them: WidgetsRUS

  keyword: widgetco

  OK Ad by them: We make the best widgets ever!  Try us today!
  Bad ad by them: WidgetCO sucks, WidgetsRUS are way better!