Delhi High Court denies Google interim relief in AdWords trademark appeal.
Google failed to persuade an Indian court to suspend a ruling holding the search engine liable for trademark infringement over its AdWords keyword advertising program.
A division bench of the Delhi High Court comprising Judge V. Kameswar Rao and Judge Manmeet P.S. Arora on Friday declined to grant interim relief pending Google's appeal. The matter is listed for final hearing on July 24.
The dispute stems from a May 22 judgment restraining Google from allowing the use of "HINDWARE" and related terms as keywords in its AdWords program. The court also ordered Google to pay 3 million rupees ($32,000) in damages in a trademark infringement suit brought by Indian sanitaryware manufacturer Hindware, ending a decade-long dispute.
The ruling centers on whether a search engine may permit advertisers to bid on a competitor's trademark as a keyword. While the damages awarded were modest, the decision could have broader implications for keyword advertising and intermediary liability in India, as MLex previously reported.
"We are appealing the Delhi High Court's order, which diverges from established legal precedents in India,"
a Google spokesperson told MLex.
Indian courts have previously held that the backend use of a trademark as an advertising keyword does not, by itself, amount to trademark infringement.
In cases involving MakeMyTrip and DRS Logistics, courts held that internet users are generally discerning and are not automatically misled merely because a competitor's sponsored advertisement appears alongside search results.
Keyword bidding is widely used in online advertising and can allow competing businesses to present alternative products or services to consumers. Courts have generally held that liability arises where the resulting advertisement creates consumer confusion, deception or trademark dilution.
"Our ad policies reflect standard practices that enable competition and give consumers more choices,"
the Google spokesperson said.
Hindware sued Google after discovering that competitors, including Grohe and Cera, had purchased "HINDWARE" as an advertising keyword, causing sponsored links for rival products to appear prominently in search results. While those competitors later settled the dispute, Google continued to contest the case, arguing that it is an intermediary entitled to safe harbor protection.
Seeking an interim stay, Google's counsel argued that the single-judge ruling departs from internationally accepted practices and could significantly affect the operation of search advertising. Google has consistently maintained that keyword bidding promotes competition by allowing consumers to compare products while enabling smaller businesses to compete more effectively.
The division bench indicated that consumer confusion remains a live issue in the appeal, observing that there "appears to be confusion," while emphasizing that it would keep an open mind before hearing final arguments on July 24.
Source: MLex
