The Delhi High Court has ruled that Google’s Ads program can be held liable for trademark infringement if it allows third-party advertisers to use someone’s trademark as a keyword. This decision emphasizes that Google’s active involvement in the keyword selection process and its direct monetary gain from selling keywords can be considered “use” under the Trade Marks Act, 1999.
Key Points:
Use of Trademarks as Keywords: The court held that using trademarks as keywords can amount to “use” under the Act, potentially leading to infringement or passing off.
Google’s Liability: Google cannot claim safe harbour protection as an intermediary if it actively participates in the unlawful act of trademark infringement.
Consumer Confusion: The court recognized that Indian consumers may be confused by advertisements triggered by third-party trademarks, which could lead to diversion of web traffic from the trademark owner’s website to that of the advertiser.
Investigation and Review: The court ordered Google to investigate complaints about trademark infringement, review the overall effect of ads, and remove ads that result in infringement or passing off.
Implications:
Trademark Owners’ Rights: This ruling strengthens trademark owners’ rights in India and provides a framework for addressing trademark infringement in online advertising.
Google’s Ad Policies: Google’s ad policies will need to comply with Indian trademark laws, potentially affecting how trademarks are used as keywords in ads.
Online Advertising: This decision may impact the online advertising landscape in India, with potential implications for businesses using Google Ads and other platforms.
The Delhi High Court’s landmark judgment on Google’s liability for trademark infringement in keyword advertising marks a significant milestone in protecting intellectual property rights online. By holding Google accountable for third-party keyword usage, this ruling sets a crucial precedent for trademark owners and online advertisers. As the digital landscape continues to evolve, this decision underscores the importance of safeguarding trademarks and ensuring fair competition in the online marketplace.
