The tech giant disputes a trademark infringement ruling, citing threats to digital advertising norms.
Google appeals a Delhi High Court decision that penalised its keyword bidding system for trademark infringement.
The intersection of digital advertising and trademark law faces renewed scrutiny in India. Consequently, Google is challenging a recent judicial decision. The Delhi High Court recently penalised the tech giant.
This ruling involved a trademark dispute with sanitaryware manufacturer Hindware. The court found Google guilty of trademark infringement. The tech firm allowed rivals to bid on Hindware’s keywords.
This bidding occurred through the Google Ads platform. Therefore, the court imposed a significant fine on the company. A division bench will hear the appeal today, July 10.
Representatives for Google confirmed their intention to contest the order. They argued that the previous verdict contradicts established legal precedents. Additionally, the company defended its advertising policies as standard practice.
The corporate spokesperson noted that these practices promote market competition. Thus, the system ultimately provides consumers with broader choices. The original May order came from a single-judge bench.
Justice Mini Pushkarna declared the keyword auction system an infringement. The court restricted Google from auctioning registered trademarks. This restriction falls under the Trade Marks Act of 1999.
Hindware initially launched this legal battle over a decade ago. In 2013, the company sued competitors Cera and Grohe. The manufacturer claimed rivals purchased trademarked keywords via Google AdWords.
Ultimately, Hindware settled the dispute with its two market competitors. However, the litigation against Google India and Google LLC continued. The court noted Google profited from auctioning these protected terms.
Therefore, the judge ruled the search engine exploited commercial power. This exploitation occurred without proper authorisation from the trademark owner. Meanwhile, this legal precedent alarms major technology corporations.
It potentially exposes them to widespread litigation from various brands. Google faced similar controversies regarding its keyword auction system. In 2022, MakeMyTrip filed a comparable trademark infringement lawsuit.
The travel aggregator accused competitors of diverting search traffic illegally. Eventually, the Supreme Court dismissed that specific legal plea. Similarly, Policybazaar launched a related case a year later.
The insurtech company sought to restrict identical keyword usage. However, the Delhi High Court rejected this request in 2023. Thus, the current Hindware appeal holds significant industry implications.
(Source: inc42)
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