The Delhi High Court ruled on May 22 that Google’s AdWords platform infringed Hindware’s trademark by allowing competitors to bid on the brand name as a keyword, and awarded ₹3 million (about $31,600) in nominal damages. Justice Mini Pushkarna rejected Google’s claim of being a passive intermediary, saying selling the plaintiff’s trademark as a keyword for commercial gain violates Section 28 of the Trade Marks Act.
Key Findings In The Judgment
The 163-page judgment said Google enabled Hindware’s rivals to target users searching for “Hindware” by selling the trademark as an unauthorized keyword. The court held that this practice infringes the plaintiff’s exclusive right to use its trademark and found Google liable for trademark infringement.
Entrepreneur Backing And Brand Protection Concerns
Indian founders including Zerodha’s Nithin Kamath and Zoho’s Sridhar Vembu publicly supported the ruling, arguing competitors have long used Google Ads to divert traffic and force brands to pay to protect their own names. Kamath said searches for “Zerodha” often show ads for competitors first, sending customers away from Zerodha’s site.
Google’s Response And Policy
Google said its Ads policy does not allow competitor advertisers to use trademarked terms in ad copy and that the policy is applied globally. A spokesperson told TechCrunch the company respects local laws and works through legal processes when court orders are overbroad or inconsistent with its policies, emphasizing alignment with local legal frameworks while protecting user interests.
Market Significance In India
India is a key market for Google, with more internet users than any country except China, making search and advertising rulings particularly consequential. The decision could prompt platforms to review automated tools that offer or suggest trademarked terms to advertisers at large.
Legal Expert View On Impact
AZB & Partners partner Aprajita Rana said the judgment may require platforms to re-examine processes but does not have far-reaching impact on online platform liability in India, where courts already established that companies can lose protections when they play an active role in unlawful activity. She emphasized that providing access to trademarked terms in ad curation can constitute participative activity for platforms.
Featured image credits: Newman Web Solutions
For more stories like it, click the +Follow button at the top of this page to follow us.