Google Loses ₹3 Million Trademark Case Over AdWords

India's Delhi High Court has ordered Google to pay ₹3 million in damages for trademark infringement, finding the company liable for allowing rivals to use the 'Hindware' trademark as a keyword in its AdWords platform. Justice Mini Pushkarna rejected Google's argument that it was merely a passive intermediary, stating that the company 'by selling the trademark of the plaintiff [Hindware] as a keyword without any authorization for commercial gains is infringing the plaintiff's right to exclusive use of its trademark'.

Founders Speak Out Indian entrepreneurs, including Zerodha founder Nithin Kamath and Zoho founder Sridhar Vembu, have publicly backed the ruling, arguing that competitors have long used Google's advertising tools to divert traffic from established brands and force companies to spend money protecting their own names. Kamath noted that Zerodha had faced the issue for over a decade, with competitors using the company's name as a keyword to target users searching for the brand.

Google's Response Google has stated that its Ads policy on trademark keywords 'does not allow competitor advertisers to use trademarked terms in the ad-text of an ad' and that the policy is applied globally. However, the company added that it respects local laws and works through legal processes when court orders are 'overbroad or inconsistent' with its policies.

Implications While the ruling may not have far-reaching implications for online platforms' liability in India, it highlights the need for platforms to re-examine their processes and ensure that they are not encouraging or offering trademarked terms to advertisers. As Aprajita Rana, a partner at AZB & Partners, noted, 'what's important in this case is how providing access to trademarked terms, even in ad curation that's between online platforms and advertisers and not known to customers, can amount to a participative activity for platforms'. With India being a key market for Google, the company will need to navigate these legal challenges while maintaining its advertising business practices.

Source: Founders seize on Indian court ruling to revive criticism of Google's ad business
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