Delhi High Court fines Google ₹30 lakh for misusing Hindware keyword in ads
The case began after Hindware alleged that rival companies were purchasing the keyword “HINDWARE” on Google Ads.
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The Delhi High Court has imposed a ₹30 lakh penalty on Google for allowing the trademark ‘HINDWARE’ to be used as a keyword in its Google Ads platform without permission from the sanitaryware company Hindware.
Justice Mini Pushkarna ruled that Google’s practice of selling trademarked words as advertising keywords amounts to trademark infringement under Indian law. The court also rejected Google’s argument that it was only acting as an intermediary platform.
The case began after Hindware alleged that rival companies were purchasing the keyword ‘HINDWARE’ on Google Ads with the help of web developer Omkara Infoweb.
https://www.cnbctv18.com/entertainment/delhi-high-court-backs-trai-rule-capping-tv-ads-at-12-minutes-per-hour-ws-el-19915622.htm
When people searched ‘Hindware’ on Google, ads from competing companies like Cera Sanitaryware and Grohe appeared at the top of the search results because they had paid Google to use the word ‘HINDWARE’ as a hidden advertising keyword.
So even though a customer searched specifically for Hindware products, they were shown rival brands first. Hindware argued that this was unfair because customers searching specifically for its products were being redirected toward competitors.
The company also pointed out that 'HINDWARE' was already a well-known trademark recognised by the Delhi High Court and had been used since 1991.
Later, Cera, Grohe and Omkara settled the matter with Hindware. The case against Google continued because the court wanted to decide whether Google itself was responsible for allowing trademarked names to be sold as advertising keywords.
Google defended itself by saying that keywords are invisible to users and work only in the background. The tech giant also said that advertisers choose the keywords, not Google.
Justice Mini Pushkarna rejected Google’s defence and said that the tech giant was not just a passive platform because it suggested keywords to advertisers through its keyword planner tool, ran auctions for trademarked keywords, ranked ads using its own system and earned money every time users clicked sponsored links.
The high court also ruled that even if the trademark ‘HINDWARE’ did not appear visibly in the advertisement, using it secretly as a keyword still counted as ‘use in advertising’ under trademark law.
The High Court then ordered Google not to allow the use of terms such as HINDWARE, HINDWARE SANITARY, HINDWARE SANITARYWARE and HINDWARE SANITARYWARE INDIA or similar combinations as advertising keywords.
The court also imposed damages of ₹30 lakh on Google and ordered it to pay within eight weeks.
Justice Mini Pushkarna ruled that Google’s practice of selling trademarked words as advertising keywords amounts to trademark infringement under Indian law. The court also rejected Google’s argument that it was only acting as an intermediary platform.
"The present issues are decided in favour of the plaintiff (Hindware) and against the defendants (Google)," the judge said, according to Bar and Bench.
The case began after Hindware alleged that rival companies were purchasing the keyword ‘HINDWARE’ on Google Ads with the help of web developer Omkara Infoweb.
https://www.cnbctv18.com/entertainment/delhi-high-court-backs-trai-rule-capping-tv-ads-at-12-minutes-per-hour-ws-el-19915622.htm
When people searched ‘Hindware’ on Google, ads from competing companies like Cera Sanitaryware and Grohe appeared at the top of the search results because they had paid Google to use the word ‘HINDWARE’ as a hidden advertising keyword.
So even though a customer searched specifically for Hindware products, they were shown rival brands first. Hindware argued that this was unfair because customers searching specifically for its products were being redirected toward competitors.
The company also pointed out that 'HINDWARE' was already a well-known trademark recognised by the Delhi High Court and had been used since 1991.
Later, Cera, Grohe and Omkara settled the matter with Hindware. The case against Google continued because the court wanted to decide whether Google itself was responsible for allowing trademarked names to be sold as advertising keywords.
Google defended itself by saying that keywords are invisible to users and work only in the background. The tech giant also said that advertisers choose the keywords, not Google.
Justice Mini Pushkarna rejected Google’s defence and said that the tech giant was not just a passive platform because it suggested keywords to advertisers through its keyword planner tool, ran auctions for trademarked keywords, ranked ads using its own system and earned money every time users clicked sponsored links.
The high court also ruled that even if the trademark ‘HINDWARE’ did not appear visibly in the advertisement, using it secretly as a keyword still counted as ‘use in advertising’ under trademark law.
The High Court then ordered Google not to allow the use of terms such as HINDWARE, HINDWARE SANITARY, HINDWARE SANITARYWARE and HINDWARE SANITARYWARE INDIA or similar combinations as advertising keywords.
The court also imposed damages of ₹30 lakh on Google and ordered it to pay within eight weeks.
(Edited by : Sudarsanan Mani)
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