Delhi HC ruling on Google keyword ads may reshape online advertising

An Indian court ruling that Google infringed the trademark rights of a bathroom fittings ​maker by allowing rivals to use its name ​as an advertising keyword could reshape the online ads ‌market, Indian businesses said on Friday.

The court ordered Google to pay damages of $31,600 in a ruling issued on May 22 by the Delhi High Court, which businesses have since been responding to.

Google said in a statement it operates in accordance with all local laws, and in instances where the orders are overbroad or inconsistent with our policies, we work to explain our position as per the legal process.

The court said Google allowed rivals of India's Hindware to use "Hindware" as a keyword to target their own advertising.

The ruling said, "the manner in which Google operates its AdWords Policy makes it clear that Google sells or auctions the use of the trademark ... without any authorisation from the proprietor of ​the trademark."

Lawyers, Indian businesses, and brand managers on Friday took to social ‌media to support the ruling, which they said will have major implications.

Nithin Kamath, founder of Indian brokerage firm ​Zerodha, ‌said his brand had suffered from similar issues for years, and ‌the ruling "now opens up a route for legal recourse".

"You create the brand. Someone else bids on it. Google takes the ‌fee," ​said Anupam Mittal, ​founder of Indian matchmaking company, Shaadi.com. The ruling "could change the economics of online advertising for millions of businesses."

Google counts India ​as one of its most critical markets.