Foreign language education company Rosetta Stone Inc. said Thursday it lost a court case in which it sued Google Inc. for allowing rivals to advertise copycat software when Rosetta trademarks are used in search terms.

The company said it was "deeply disappointed" that its suit was dismissed by the U.S. District Court for the Eastern District of Virginia.

The company said the decision will "permit Google to continue to create consumer confusion" by allowing counterfeit products to be sold using its trademarks.

Rosetta Stone said that Google knows counterfeit software is being advertised using its AdWords system and takes no effective steps to stop the activity.

The company said it will consider an appeal upon reviewing the court's written decision.

A representative of Google did not immediately respond to a request for comment.

Rosetta Stone shares closed down 16 cents at $26.33 on Thursday. Google shares rose $2.81 to close at $532.