Google appeals Delhi High Court ruling on keyword advertising

Google has appealed a Delhi High Court (HC) ruling that held it liable for trademark infringement concerning keyword advertising. The tech giant argues that the decision makes India a "sole outlier" among global jurisdictions, with "serious consequences for the digital advertising industry, online consumer choice, and competitive markets."

The appeal, filed on July 7 and spanning over 4,700 pages, will be heard by a Division Bench on July 10. Google's central argument is that a keyword functions solely as a "backend trigger" to display an ad and that the company is merely "making advertising space available." It contends that the ruling harms consumers, who often search for a brand to evaluate alternatives, effectively granting trademark owners a "monopoly over advertising space to the detriment of consumers."

Google asserts that the Delhi HC's judgment deviates from established legal precedents in India and globally. The company plans to rely on prior decisions from the Delhi HC, the Supreme Court, and India's Competition Commission that have recognized keyword advertising. Google also disputes the court's distinction between coined marks like "Hindware" and generic terms, stating the Trade Marks Act does not draw such a difference.

The original ruling in May found that using a trademark as a keyword constitutes its "use" in advertising, even if not physically present in the ad copy. Furthermore, the court determined Google was not a passive intermediary but an active participant that facilitated infringement through its tools and auction systems, thereby losing protection under Section 79 of India's IT Act. The significant stake in Google's appeal lies less in the approximately Rs 30 lakh in damages and more in setting a crucial legal precedent.