Delhi HC fines Google ₹30 lakh over use of Hindware trademark in AdWords
Delhi High Court ordered Google to pay Hindware ₹30 lakh damages for infringing its trademark by using it as AdWords keywords, citing unfair commercial advantage.
Delhi High Court ordered Google to pay Hindware ₹30 lakh damages for infringing its trademark by using it as AdWords keywords, citing unfair commercial advantage.
Delhi High Court ordered Google to pay Hindware ₹30 lakh damages for infringing its trademark by using it as AdWords keywords, citing unfair commercial advantage.
The Delhi High Court has directed Google to pay ₹30 lakh in damages to Hindware for using the sanitaryware company's trademark as keywords in its AdWords advertising programme.
In a judgment delivered on May 22, Justice Mini Pushkarna held that the use of registered trademarks as advertising keywords gave Google an unfair commercial advantage and violated provisions of 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 their platform.
The court awarded ₹15 lakh in damages in each of the two suits filed by Hindware Limited, taking the total compensation to ₹30 lakh. Google has been directed to pay the amount within eight weeks. The court also allowed Hindware to recover litigation costs and asked the company to submit its bill of costs within two months.
The judgment noted that Google's AdWords programme is a commercial venture that generates revenue by displaying sponsored links from advertisers. The court observed that by allowing competitors to bid on Hindware's trademark as a keyword, Google enabled them to intercept consumers searching specifically for the Hindware brand.
The court held that Google's actions amounted to an unfair practice aimed at exploiting the reputation and distinctive character of Hindware's trademark for commercial gain. It further noted that Google had not obtained Hindware's consent before offering its trademark to advertisers through the AdWords programme.
Rejecting Google's defence under Section 79 of the Information Technology Act, the court ruled that the company's role in auctioning and selling trademarked keywords went beyond that of a neutral intermediary and therefore did not qualify for safe-harbour protection.
The judgment also pointed out that Google did not permit trademarks to be used as keywords in India until 2009, but later revised its policy to allow the practice. According to the court, this demonstrated a deliberate commercial policy designed to profit from trademarked search terms.