So consider this possibility. What if the website you owned and promoted in Google Adwords sold exclusively Epson related products and accessories, and you received a letter saying you could no longer use Epson in the ad copy. Ekkk! That would make it a little more difficult to promote and sell Epson related products in a PPC campaign for sure. It would be like trying to find a way to say the name without even saying it. Supposedly a member over at SEOchat received an email from Google, telling him that his ads were suspended due to a brand name being used (Epson).
One suggestion I liked was that he could contact Epson themselves, and call to make sure that ads placed where no problem for the company. He could provide Google with information that he is a approved Epson reseller, with full rights to do so (if he does indeed). He could also email Google asking about what prompted such an action whether it was a decision based on information received from Epson or an independent decision on its own. Or maybe he just can't advertise specific products, such as an Epson c900. But that doesn't seem to be the case. Either way its stinks for the company placing ads, but it just might be something that is going to happen eventually.
The one thing I could see help recover some of the business lost from the adwords, would be to submit a data feed to Froogle. This way he try to compete for those searching for epson printers on Google in a different way, or try Overture, they don't seem to mind.