The Delhi High Court's division bench on Thursday declined to stay a landmark single-judge ruling that held Google liable for trademark infringement for auctioning registered trademarks such as “Hindware” as advertising keywords, while issuing notice on the company's appeal and listing the matter for further hearing on July 24.
The division bench comprised Justice V. Kameswar Rao and Justice Manmeet Arora.
The decision means the May 22 judgment delivered by Justice Mini Pushkarna will continue to operate for now. The single judge held that Google's Ads programme went beyond the role of a passive intermediary and actively commercialised trademarks by suggesting, auctioning and monetising them through its keyword advertising system. The court permanently restrained Google from auctioning Hindware's trademark as a keyword to competitors and awarded Rs 30 lakh in damages.
The judgment marked a significant departure from Google's long-standing position that advertisers, and not the platform, are responsible for keyword selection. Justice Pushkarna found that Google's Keyword Planner, auction mechanism and pay-per-click revenue model made it an active participant in the use of trademarks rather than a neutral facilitator.
The division bench's refusal to grant interim relief is likely to be closely watched by advertisers, brand owners and digital marketing agencies. With the single-judge ruling remaining in force, trademark owners may be emboldened to challenge competitors that bid on their brand names and to seek action against platforms facilitating such practices.
The case also raises broader questions about the future of keyword advertising in India. Search advertising has long relied on advertisers bidding on rival brand terms to target consumers searching for competing products. If the single-judge view ultimately survives appellate scrutiny, online advertising platforms may be forced to revisit keyword policies, potentially reducing the use of third-party trademarks in ad auctions and increasing compliance obligations for digital intermediaries.
The matter is next scheduled to come up before the division bench on July 24, when Google's challenge to the ruling will be considered further.
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