The court said Google allowed rivals of India’s Hindware to use “Hindware” as a keyword to target their own advertising.
The ruling said, “the manner in which Google operates its AdWords Policy makes it clear that Google sells or auctions the use of the trademark … without any authorisation from the proprietor of the trademark.”
New Delhi:Delhi High Court ruling that Google infringed the trademark rights of a bathroom fittings maker by allowing rivals to use its name as an advertising keyword could reshape the online ads market, Indian businesses said on Friday.
The court ordered Google to pay damages of $31,600 in a ruling issued on May 22 by the Delhi High Court, which businesses have since been responding to.
The Delhi High Court has directed Google to pay Rs 30 lakh as damages to Hindware for using the sanitaryware major’s trademark as keywords for its AdWords programme.
Justice Mini Pushkarna, while dealing with two lawsuits by Hindware Ltd, held that the use of trademarks as keywords amounted to “unfair advantage” under the Trademarks Act and restrained Google LLC and Google India from using ‘Hindware’ or ‘Hindware Sanitaryware’, ‘Hindware Sanitary’ or ‘Hindware Sanitaryware India’ as part of advertising keywords for its platform.
“This Court awards nominal damages of Rs 15 Lacs only each in the present suits, totalling to Rs 30 Lacs only in favour of the plaintiff. The aforesaid amount shall be paid by the defendants, i.e., Google LLC/Google India within a period of eight weeks,” the court ordered in the judgement dated May 22.
Google said in a statement it operates 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.
The court said Google allowed rivals of India’s Hindware to use “Hindware” as a keyword to target their own advertising.
The ruling said, “the manner in which Google operates its AdWords Policy makes it clear that Google sells or auctions the use of the trademark … without any authorisation from the proprietor of the trademark.”
Lawyers, Indian businesses, and brand managers on Friday took to social media to support the ruling, which they said will have major implications.
Nithin Kamath, founder of Indian brokerage firm Zerodha, said his brand had suffered from similar issues for years, and the ruling “now opens up a route for legal recourse”.
“You create the brand. Someone else bids on it. Google takes the fee,” said Anupam Mittal, founder of Indian matchmaking company, Shaadi.com. The ruling “could change the economics of online advertising for millions of businesses.”
Reuters