This ppc policy does exist in mainstream and I personally LOVE IT.
It's so short sighted and just plain stupid to not allow your affiliates who are pushing your product to use the fucking product name in their ads. It's not taking any money away from the business, it's adding a shitload more. Stupid companies like this are great finds though because you can take their list of "restricted ppc terms" and advertise for the competition with them.
So, instead of advertising for Fleshlight, make an adwords campaign advertising their competition, some dildo or plastic vagina or whatever and USE the fleshlight term in there. Your ad could be:
Looking for Fleshlight?
Screw them, try this instead.
$19.95 for Jeanna's pussy.
www.fleshlight-sucks.com
You'd make a ton for the competition that way. I really love the affiliate managers who tell you the EXACT phrases NOT to bid on for their product. Those lists are pure gold for pushing the competitor products.
So what's better fleshlight? Seeing your ad in the first spot then 10 competitors' ads right below you OR Seeing your ad in the first spot then 10 affiliates pushing all the sales to YOU?
Right now you're saying you want exclusive rights to it on adwords, so you chose option 1 above. So, screw you fleshlight and all the stupid fucking mainstream companies, (99% of them) who think they're protecting their brand and making more money using this policy. You have no clue how much money YOU ARE LOSING with this stupid ass backwards policy. Let your affiliates make you sales, don't hinder them. Your offline marketing people should NOT be running your online marketing activities.