Google challenges Delhi High Court order over Hindware trademark use in AdWords

Tech giant Google has approached the Delhi High Court against a single-judge order that found it guilty of trademark infringement for using the sanitaryware brand Hindware's mark as keywords in its AdWords programme.

A division bench of Justices V. Kameswar Rao and Manmeet P.S. Arora issued notice to Hindware on Google's appeal and listed the matter for final hearing on July 24. The court refused to grant an interim stay on the direction to pay ₹30 lakh in damages, stating it would hear the case fully on the next date.

Senior advocate Abhishek Singhvi, appearing for Google, argued that the single judge's verdict was inconsistent with earlier decisions and globally accepted practices in online advertising. He sought an interim stay on the damages award, but the bench declined to interfere at this stage.

The single judge had on May 22 ruled that Google's use of Hindware's trademark as keywords for its AdWords programme amounted to an unfair advantage under the Trademarks Act. The court restrained Google and its Indian unit from using 'Hindware' or related terms as part of advertising keywords on its platform.

In its judgment, the single judge observed that by allowing direct competitors to target users searching for Hindware, Google engaged in an unfair practice and exploited the distinctive character and repute of the well-known trademark for its own advertising business. The court noted that Google had not sought prior consent or approval from Hindware before offering, suggesting, and selling the trademark to other entities through the AdWords programme.

The judge further held that Google's actions were not protected under Section 79(1) of the Information Technology Act, which provides intermediaries a safe harbour from liability. The court said the auction and sale of the plaintiff's trademark as a keyword to competitors fell outside this exemption.

The case highlights ongoing legal questions about trademark rights in digital advertising, particularly when search engines allow advertisers to bid on competitors' brand names. Google has maintained that its practices are consistent with industry standards and previous legal rulings.

Hindware, a leading sanitaryware brand, had filed two lawsuits against Google arguing that the use of its trademarks in AdWords caused confusion and diverted potential customers to competitors. The company claimed damages and sought a permanent injunction against such use.

The division bench will hear the appeal on July 24.