Home / Business and Economy / Google Ad Ruling: Brands Can Sue Over Keyword Infringement
Google Ad Ruling: Brands Can Sue Over Keyword Infringement
30 May
Summary
- Indian court finds Google liable for trademark infringement via keyword ads.
- Rivals used Google's system to divert customers from established brands.
- Hindware awarded ₹3 million in damages for unauthorized keyword use.
A recent Indian court ruling found Google liable for trademark infringement concerning its keyword advertising practices, drawing significant attention. The Delhi High Court decided on May 22 that Google's AdWords platform allowed competitors to use "Hindware" as a keyword, targeting users searching for the brand. This action was deemed an infringement on Hindware's exclusive rights, resulting in a ₹3 million award.
Entrepreneurs, including Zerodha founder Nithin Kamath, have backed the ruling, citing a decade-long issue where search traffic for their brands is diverted to competitors. Google stated its Ads policy prohibits using trademarked terms in ad text and aims to align operations with local laws while protecting users.
Legal experts suggest the ruling's impact might be narrower than publicly perceived, noting it requires platforms to review processes that may encourage trademarked keyword use. However, they emphasize that active participation in unlawful activity can remove legal protections for online platforms, making the facilitation of trademarked term access a point of potential liability.
