Google’s search engine has been found liable for trademark infringement by using trademarks as keywords in its Ads Programme, according to a ruling by the Delhi High Court. The court emphasized that Google cannot claim “safe harbour” protection as an intermediary due to its active role in running an advertisement business. The Alliance of Digital India Foundation (ADIF) has expressed support for the court’s decision. The bench of Justices Vibhu Bakhru and Amit Mahajan stated, “Merely because Google’s business is conducted online and tied to its role as an intermediary, it does not qualify for the benefit of Section 79(1) of the IT Act in relation to the Ads Programme.”
This ruling comes as a result of Google’s appeal against the order of a single-judge bench in a lawsuit filed by Agarwal Packers and Movers Ltd. The plaintiff alleged that the use of its trademark and variations of it as keywords in the Ads Programme resulted in the diversion of website traffic to the advertiser’s site. The court’s decision highlights the risks Google faces by allowing trademarks to be used as keywords in its advertising platform.
Prior to 2004, Google had stricter trademark usage policies, prohibiting the use of trademarks in sponsored ads’ text and keywords upon the trademark owner’s request. However, Google relaxed the restrictions, allowing trademarks to be used as keywords even if objected to by the trademark owner. While this change in policy increased revenue, it also exposed Google to potential litigation.
During the hearing, the Delhi High Court addressed Google’s claim of safe harbor protection under Section 79 of the Information Technology Act. The court expressed skepticism and questioned Google’s role as a mere intermediary. It noted that Google actively suggested keywords to advertisers, including competitors’ trademarks, and that its Keyword Planner Tool facilitated this practice. The court further raised concerns about Google’s encouragement of using trademarks as keywords to target ads. As a result, the court upheld the previous ruling and ordered Google to investigate and remove any ads that infringed upon trademark rights.
This ruling comes as a result of Google’s appeal against the order of a single-judge bench in a lawsuit filed by Agarwal Packers and Movers Ltd. The plaintiff alleged that the use of its trademark and variations of it as keywords in the Ads Programme resulted in the diversion of website traffic to the advertiser’s site. The court’s decision highlights the risks Google faces by allowing trademarks to be used as keywords in its advertising platform.
Prior to 2004, Google had stricter trademark usage policies, prohibiting the use of trademarks in sponsored ads’ text and keywords upon the trademark owner’s request. However, Google relaxed the restrictions, allowing trademarks to be used as keywords even if objected to by the trademark owner. While this change in policy increased revenue, it also exposed Google to potential litigation.
During the hearing, the Delhi High Court addressed Google’s claim of safe harbor protection under Section 79 of the Information Technology Act. The court expressed skepticism and questioned Google’s role as a mere intermediary. It noted that Google actively suggested keywords to advertisers, including competitors’ trademarks, and that its Keyword Planner Tool facilitated this practice. The court further raised concerns about Google’s encouragement of using trademarks as keywords to target ads. As a result, the court upheld the previous ruling and ordered Google to investigate and remove any ads that infringed upon trademark rights.
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