Pushing a giant- will they push back?

According to this Washington Post article, Rosetta Stone filed a lawsuit against Google for selling their trademark brand in Google's wildly popular and successful AdWords program. I'm not sure how effective this lawsuit will be, but I think Rosetta Stone makes a good point and I'm a little bit proud of them for sticking up for themselves. As a company headquartered just down the road from me, I know a few people who work there and I am very familiar with their products.

I could be wrong here, but allowing anyone to purchase trademarked names or phrases in AdWords does seem a bit off. Anyone agree or disagree? If someone tried to do this in print advertising, it would not be permitted, so have we reached a new wave in regulating online advertising and content?