Google Challenges Delhi High Court Order That Could Change How Search Ads Work

Google has challenged a Delhi High Court ruling that found it liable for trademark infringement over its advertising platform, arguing that the decision could significantly alter India's online advertising market if allowed to stand.

The appeal follows a May judgment in favour of sanitaryware maker Hindware, which accused Google of allowing rival brands to purchase its trademark as a search advertising keyword. Google says the ruling departs from global legal practice and could have serious consequences for digital advertising, competition and consumer choice.

What's the Case About?

The dispute centres on Google Ads, where businesses bid on keywords to ensure their advertisements appear when users search for specific terms.

Hindware argued that competing companies were buying the keyword "Hindware", allowing their advertisements to appear prominently when consumers searched for the brand on Google.

The Delhi High Court agreed, holding Google responsible for enabling trademark infringement through its advertising platform. It ordered the company to pay around $31,600 (roughly ₹27 lakh) in damages, along with litigation costs.

Google's Defence

In its appeal, reviewed by Reuters, Google argues that the ruling makes India the "sole outlier" among major jurisdictions. According to the company, keywords function only as internal triggers that determine which advertisements are displayed and are not visible to users in the advertisements themselves.

Google also contends that preventing advertisers from bidding on competitors' trademarks would reduce consumer choice. The company cited research suggesting users often search for a particular brand not only to find that company's products but also to compare alternatives before making a purchase.

Granting trademark owners exclusive control over advertising triggered by their brand names, Google argues, would effectively create a monopoly over that search space.

Why the Verdict Matters

If the High Court's ruling is upheld, legal experts believe it could reshape how search advertising operates in India.

Today, businesses routinely bid on competitors' brand names as keywords to reach potential customers who may be comparing products. Restricting that practice could increase advertising costs for challengers while making it easier for established brands to dominate search results.

Companies that own well-known trademarks, however, argue the current system allows competitors to benefit unfairly from years of brand-building by diverting customers searching specifically for them.

The Court's View

Justice Mini Pushkarna took a different view from Google. In the May judgment, the court observed that Google could not avoid responsibility simply because it provided the advertising platform.

The judgment stated that Google had attempted to "sell something that it simply does not own," referring to trademarked brand names used as advertising keywords.

More Legal Challenges Await Google

The trademark appeal adds to Google's growing legal challenges in India. The company is already facing multiple antitrust investigations, litigation over AI training practices, and compliance requirements under India's stricter digital content regulations.

Google has confirmed it is appealing the trademark ruling, saying the decision "diverges from established legal precedents in India." The appeal is expected to be heard in the coming days.