In a significant ruling that could have wide-ranging implications for digital advertising in India, the Delhi High Court has directed Google and Google India to pay ₹30 lakh in damages to sanitaryware giant Hindware for trademark infringement through its Google Ads platform.
The dispute arose after Hindware alleged that competitors were allowed to purchase the trademarked term “HINDWARE” as a keyword under Google’s advertising programme. Consequently, users searching for Hindware products were shown sponsored advertisements from rival brands, potentially diverting customers and allowing competitors to benefit from Hindware’s established brand reputation.
Justice Mini Pushkarna, while delivering the judgment, held that the use of a registered trademark as an advertising keyword constitutes “use in advertising” under the Trade Marks Act, even if the trademark itself is not visibly displayed in the advertisement. The court observed that Google’s keyword advertising mechanism enabled competitors to gain an unfair advantage from Hindware’s goodwill and market presence.
The court rejected Google’s contention that it merely functioned as an intermediary protected under the Information Technology Act. It ruled that Google actively facilitated and profited from the sale of trademarked keywords through its advertising business and therefore could not escape liability.
As part of the judgment, the court permanently restrained Google from permitting the use of the trademark “HINDWARE” and its variants as advertising keywords on its platform. The court also awarded damages of ₹15 lakh in each of the two commercial suits filed by Hindware, taking the total compensation to ₹30 lakh. Additionally, Hindware was granted the right to recover litigation costs incurred during the legal battle.
The case, which has its roots in events dating back to 2013–14, is being viewed as a landmark decision in the evolving area of digital advertising and trademark protection. Legal experts believe the ruling reinforces the rights of trademark owners in the online marketplace and sends a strong message to digital platforms regarding their responsibilities in managing keyword-based advertising services.
Industry observers say the verdict could prompt advertisers and technology companies to reassess keyword bidding practices and ensure greater compliance with trademark laws, potentially reshaping the landscape of online advertising in India.