Delhi HC rejects Google’s interim relief in Hindware trademark dispute | Today’s news

The Delhi High Court on Friday refused to grant interim protection to Google India in its appeal against a single judge ruling holding the company liable for trademark infringement on the Google Ads platform in a dispute with sanitary ware maker Hindware.

Justices V. Kameswar Rao and Manmeet Pritam Singh Arora issued notice of appeal to Google but refused to stay the May 22 judgment ordering the company to pay ₹30 million in damages for trademark infringement.

The court said it would hear Google’s challenge in detail and posted the matter for further hearing on July 24.

The case is likely to be closely watched as it could set an important precedent for the extent to which digital platforms can license, auction and monetize trademarked search terms, while balancing trademark rights with online advertising competition.

Google has challenged a single judge’s ruling that found it liable for allowing advertisers to bid on the registered trademark Hindware as a Google Ads keyword.

A single judge ruled that such use amounted to trademark infringement, prevented Google from allowing the use of the trademark “HINDWARE” and its variants as keywords for advertising, and ordered the company to pay ₹30 million for damages and legal costs.

Read also | Why Delhi HC says invisible keywords can infringe trademarks

Keyword Debate

During the hearing, appearing for Google, senior advocate Abhishek Manu Singhvi said the judgment links the visible use of a trademark in advertising with the invisible use of a trademark as an internal keyword.

Singhvi argued that no court worldwide has ruled that the mere use of a trademark as a keyword constitutes trademark infringement, and stated that Google’s keyword advertising policies have been followed uniformly across jurisdictions. Courts in at least 14 countries have refused to consider keyword bidding as trademark infringement, he said.

Singhvi further argued that Google operates as a search platform serving the broader public interest and that users often search for branded terms to compare competing products and services. Preventing advertisers from bidding on trademarked keywords would have a cascading effect on Internet search, online advertising and competition, he said.

The Google booth

In its appeal, Google argued that allowing advertisers to bid on competitors’ trademarks as keywords is a globally recognized advertising practice that promotes competition and consumer choice.

He argued that the keywords were only internal triggers used to serve ads and did not constitute trademark use. Google also argued that previous Indian court decisions and the Competition Commission of India recognized that its keyword advertising policies are beneficial to consumers and pro-competitive.

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The dispute dates back to 2013-14, when Hindware sued Google along with rival plumbing companies Cera and Grohe, alleging that they had purchased the registered trademark “HINDWARE” as a Google Ads keyword, resulting in sponsored ads from competing brands being displayed when users searched for Hindware products.

Hindware later settled its disputes with Cera and Grohe, but continued to pursue its claims against Google.

Previous judgments

While the Hindware judgment is the first time Google has been held liable for trademark infringement on its keyword advertising platform in India, the legal battle over keyword advertising itself is nothing new.

In August 2023, the Delhi High Court ruled in a dispute between Google and DRS Logistics (Aggarwal Packers & Movers) that the use of a competitor’s trademark as a Google Ads keyword does not in itself constitute trademark infringement.

The panel ruled that liability would only arise if the resulting advertising caused consumer confusion, deception, dilution or unfair use of the trademark owner’s reputation.

Read also | Google’s verdict may set the course for tech firms

Similarly, in December 2023, in a dispute between Google, MakeMyTrip and Booking.com, the Delhi High Court reiterated that offering a competitor’s trademark as a Google Ads keyword is not automatically illegal, reiterating that infringement occurs only if the ad misleads consumers or creates confusion as to the source of goods or services.

In its appeal in the Hindware case, Google relied on those two court decisions to argue that the May 22 ruling did not follow established legal principles governing keyword advertising.