The Delhi High Court has directed Google to pay ₹30 lakh in damages to Hindware for using the sanitaryware company’s registered trademark as keywords in its AdWords advertising programme.
The judgment, delivered on May 22 by Justice Mini Pushkarna, held that the use of registered trademarks as advertising keywords provided Google with an unfair commercial advantage and amounted to a violation of provisions under the Trade Marks Act.
The court restrained Google LLC and Google India from using terms such as “Hindware”, “Hindware Sanitaryware”, “Hindware Sanitary” and “Hindware Sanitaryware India” as advertising keywords on its platform.
As reported on Gold 101.3 FM, UAE’s No.1 Radio Station, the case stems from a dispute over how search-based advertising practices interact with trademark protection in digital marketing.
The court awarded ₹15 lakh in damages in each of the two suits filed by Hindware Limited, bringing the total compensation to ₹30 lakh. Google has been directed to pay the amount within eight weeks. The court also permitted Hindware to recover litigation costs and instructed the company to submit its bill of costs within two months.
The judgment noted that Google’s AdWords programme operates as a commercial service that generates revenue by displaying sponsored advertisements based on selected keywords. The court observed that by allowing competitors to bid on Hindware’s trademark as a keyword, Google enabled them to intercept users specifically searching for the brand.
It further held that this practice amounted to unfair exploitation of Hindware’s trademark reputation and distinctive identity for commercial gain. The court also recorded that Google did not obtain Hindware’s consent before making its trademark available for bidding through the AdWords system.
Rejecting Google’s defence under Section 79 of the Information Technology Act, the court ruled that the company’s role in auctioning and monetising trademarked keywords went beyond that of a neutral intermediary, and therefore it was not entitled to safe-harbour protection.
The judgment also highlighted that Google did not permit the use of trademarks as keywords in India until 2009, but later changed its policy to allow the practice. The court observed that this shift reflected a deliberate commercial decision to monetise trademarked search terms.
The ruling is seen as a significant development in India’s evolving jurisprudence on digital advertising, trademark protection and the responsibilities of online intermediaries.
