The Delhi High Court on May 22 found Google liable for trademark infringement by allowing competitors to bid on the trademarked term "Hindware" as a keyword in online advertising without authorization from the bathroom fittings maker Hindware [1, 2].
The 163-page judgment stated Google infringed Hindware’s exclusive trademark rights under Section 28 of the Trade Marks Act by "selling the trademark of the plaintiff [Hindware] as a keyword without any authorization for commercial gains," according to Judge Mini Pushkarna [2]. The court rejected Google's defense that it acted as a passive intermediary and held it responsible for facilitating keyword auctions involving trademarked terms [2].
Google was ordered to pay damages of approximately US$31,600 (₹3 million) to Hindware [1, 2]. While Google's advertising policy does not allow competitors to use trademarked terms in the ad text itself, the ruling challenges the common industry practice of using trademarks as keywords to trigger ads, even if the trademark is not in the ad copy [1, 2].
The verdict sparked support among Indian entrepreneurs who have faced similar issues. Zerodha founder Nithin Kamath said customers searching for "Zerodha" often see competitors' ads first, siphoning valuable traffic away. "The traffic should rightfully come to Zerodha," he said [2]. Shaadi.com founder Anupam Mittal called out the financial incentives involved, noting "you create the brand, someone else bids on it, Google takes the fee," adding that the ruling "could change the economics of online advertising for millions of businesses" [1].
A Google spokesperson responded by emphasizing compliance with local laws, saying "We look forward to continuing to align our operations with local legal frameworks while maintaining strict standards to protect our users’ long-term interests" [2].
Following the May 22 ruling, public reactions and business support were voiced through the week ending May 29 [1, 2]. The ruling sets a clear precedent on liability for auctioning trademarked keywords and highlights legal limits on online ad practices in India.
