I didn't follow the lawsuit either, because I thought it was frivolous. I seem to remember reading that Google will remove unauthorized trademarks from AdWords and AdSense, but not from displaying a site in its results that has used the trademark within its source code such as the keyword meta tag.
I barely remember the German lawsuit that was just settled. I seem to recall that they were unhappy that other companies were displayed in the search results after a searcher used a term they had trademarked. Really stupid.
Almost every word imaginable has been trademarked to one extent or another. If a lawsuit like that succeeded, there would be no more search engines.
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