Google has said that it “does not allow competitor advertisers to use trademarked terms in the ad-text of an ad,” after the Delhi High Court held the search giant liable for trademark infringement of sanitaryware maker Hindware. Google has been directed to pay Rs 30 lakh to Hindware.
“We duly respect and operate in accordance with all local laws, and in instances where the orders are overbroad or inconsistent with our policies, we work to explain our position as per the legal process in the country,” a Google spokesperson said.
“Specifically, on our Ads policy on trademark keywords, we have a clear and stated policy that does not allow competitor advertisers to use trademarked terms in the ad-text of an ad. This policy is consistently applied globally and is in accordance with the Indian trademark law.”
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The Delhi High Court, in an order passed on May 22, permanently barred Google from allowing the use of “HINDWARE” or closely related terms as advertising keywords within its AdWords services. Google was also directed to pay the legal expenses associated with the proceedings.
The litigation dates back more than a decade, when Hindware, then known as HSIL Ltd., filed two commercial suits in 2013 and 2014 against Google entities, alongside Grohe India, Cera Sanitaryware and Omkara Infoweb.
The sanitaryware maker contended that Google searches for the term “HINDWARE” frequently generated advertisements for rival brands. Grohe and Cera, aided by Omkara Infoweb, had bid on trademark-related keywords such as “HINDWARE” and “HINDWARE SANITARY” through Google's advertising platform. This enabled their promotional links to secure top positions on the search engine.
As the litigation progressed, the three co-defendants opted to settle with Hindware. Following those agreements, the legal battle narrowed to Google India and its parent entity, Google LLC.
In a setback for Google, the court dismissed the company's contention that it merely acted as a neutral intermediary. The judgment emphasised that Google plays a direct commercial role by offering keywords for sale, overseeing auction-based advertising and earning income from searches involving protected trademarks.
The decision could prove influential across India's digital economy, where competitor keyword bidding has become a standard promotional tool. Many businesses purchase rival brand terms in an effort to ensure their advertisements appear prominently before consumers searching for competing products or services.
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