Delhi HC asks Google to crack down on ads that infringe trademarks

In a major blow to Google, the Delhi High Court has directed the tech major to actively crackdown on ads that infringe upon trademarks. The order came as a division bench of the HC was hearing an appeal filed by Google against a 2021 Delhi HC order that directed the tech giant to investigate whether the use of trademarks as ad keywords amounted to infringement. 

Google, in its argument, contended that it was entitled to safe harbor protections as an intermediary under Section 79 of the Information Technology Act, 2002. The provision more or less offers immunity to platforms from content posted by third-parties.  

While rejecting Google’s argument, the HC observed that the tech major’s claims of being a mere intermediary had ‘no credibility.’ Having observed that Google derived ‘substantial’ benefits from sale of keywords, the Court noted that the tech major itself suggested keywords to advertisers, including the trademark of competitors.  

Citing Google’s Keyword Planner Tool, the HC said the tool even allowed firms to have visibility on their competitors’ trademarks. 

The HC also held that, prima facie, it appeared that Google encouraged search keywords related to trademarks to target ads, adding that it was difficult to accept that Google was entitled to intermediary exemptions.  

The trademark infringement case was filed by DRS Logistics. The company, in its plea, flagged the usage of its trademark ‘’Agarwal Movers and Packers’ as a keyword by competitors on Google search. This, the complainant said, it allowed the websites of its competitors to be displayed on top when searching for the trademark.