How? Seems clear that they're trying to profit from Google's good name? Why should that be allowed?
Because the word "Grog" has a meaning of its own which in no way relates to the word google or the google business. I do see your point that they are probably using groggle because of its similarity to google but their site in no way would effect google financially, it is very, very higly unlikely that you would ever accidentally type in groggle when searching for google.... all naming it groggle would do would make it easier to remember groggles website for people that chose to be customers of that site ....
Any lawyer that went to court for the groggle website would have no problem proving precident with so many businesses using things like the word rite in their business name... it would be like Rite Price cooling and heating taking Smoke Rite cookers to court for using the word rite in their business name. Ive never seen anything about Wallmart stopping Smokemart using their business name but that would have come from the Wallmart name. The world google existed long before the company ever did. Someone making google eyes at someone was around long before the internet.. Any semi competent lawyer would have kicked Googles butt in court in 15 minutes.
Corporations need to have less power to control other peoples use of names.... Ugg boots were created and named in Australia and a big US manufacturer stopped Australians selling ugg boots in the US and on ebay and calling them ugg boots because the US people decided to register the name as a brand and trademark. Eventually the Australians took it to court and are now allowed to use the name Ugg boot again in the US. Just as these people should be allowed to use groggle.
Just my opinion of course, I respect your right to see it differently. If the name took business from google, was in the same kind of business as google, I would agree with you. I'm only looking at it from the legal standpoint that there are too many precidents already in place that would make this a simple win in court for the groggle people.