ARTICLE AD BOX
New Delhi: The Delhi High Court, in a recent observation, could have a great impact on how online advertising can be performed in the country. Google was found liable for the violation of the trademarks, ‘Hindware’, with the provision of its Google Ads platform to the advertisers using the same website. Google has been found responsible for the infringement of the trademarks ‘Hindware’ when using the same trademark as keyword in its Google Ads platform. The verdict is seen as a precedent-setting case that could have national implications for digital advertising.
A trademark owned by sanitaryware brand Hindware claimed that a competitor used the trademark, contradicting the name of the brand, by bidding on the website with the keyword “Hindware”. This led to the display of other people’s advertisements whenever users typed in the search query “Hindware” on Google. The business is saying that fitting benefits the customers, but denies the company the opportunity to establish a reputation.
The Delhi High Court in a landmark judgment, has extended relief to Hindware retailer and has imposed liability to Google in damages in the form of ₹30 lakh. The court additionally dismissed Google’s theory that it is simply a middleman, thus it shouldn’t be liable for the actions of advertisers. The judgment alleges that Google possesses knowledge of the sale of the trademarked words and benefits from it and that Google actively allows and benefits from the sale.
The court pointed out that if the trademark is used as the keyword, the trademark can be considered as trademark infringement even if there is no trademark in the advertisement. In allowing businesses to bid for access to another business’s trademark name, customers are diverted and it may lead to unfair competition, the judgment said.
From the legal standpoint and the geek’s point of view, this ruling could have far-reaching consequences on the Digital Advertising ecosystem in India. There are many companies that are now utilizing keyword advertising simply to promote to a possible audience about their organization, including bidding for competitors’ keywords. A larger law would raise a red flag for firms that would then have to take a new look at their advertising channels and marketing approaches.
The decision could have broader implications for others who own a trademark that is being used as part of Internet advertising campaigns, as they may now look for similar relief from such use. That would make brand owners feel comfortable protecting their brand, and advertising agencies might have to be cut even more to consider keyword use.
Case significant due to Google Ads is one of the world’s largest digital advertising platforms, industry analysts said. If there are any restrictions on the bidding on trademarked keywords, any advertiser, digital marketing agency, and any company, irrespective of their size, would be affected. One of the speculators believes that the decision may lead to a change in the advertisement policy and a greater transparency in the keywords used for advertising.
In what lies ahead Google hasn’t exactly said, but the ruling has sparked comments from across the tech and business world. Whilst companies look into the impact of the judgment, it is likely this case could become an important precedent in any future trademark and digital advertising battle in India.
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