Are you allowed to buy google keywords that have other people’s websites in them ?

Aug 21 2009 Published by eranio under Online Promotion

I wanted to advertise on google my website and the best keyword it could find is the name of another website . Would it be legal to bid on that keyword to advertise ?
Just wanted to add an example to make sure my question is understood . So i would be allowed to bid on keyword Typobay even tho there is a typobay.com ?

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