The Delhi High Court has made a significant ruling that denies Google the safe harbor protection provided by the Information Technology Act, 2000. The court also held that Google can be held liable for trademark infringement when using trademarks as keywords in its Ads Programme.
Google appealed against a prior ruling in which it was deemed responsible for ensuring that keywords used in its Ads Programme did not infringe trademarks. The court held that Google’s activities couldn’t be shielded under Section 79 of the Information Technology Act, 2000.
The case was initiated by DRS Logistics against Google India, Google LLC, and Just Dial. DRS Logistics sought to prevent the use of its registered trademark “AGARWAL PACKERS & MOVES or DRS LOGISTICS” as keywords, meta tags, or trademarks.
Court’s Verdict
The division bench, composed of Justice Vibhu Bakhru and Justice Amit Mahajan, supported the previous ruling. They determined that Google actively participates in its Ads Programme and isn’t just a passive intermediary.
The bench acknowledged that Google’s involvement in suggesting keywords for higher click rates contradicts the notion that Google is a mere facilitator.
The court also clarified that while using trademarks as keywords isn’t inherently detrimental to their reputation, if such usage leads to confusion, dilution, or compromise of the trademark’s integrity, it could be deemed an infringement.
Google’s Response
In response to the verdict, Google expressed satisfaction with the Delhi High Court’s decision. The company highlighted its adherence to a policy that prevents advertisers from using trademarked terms in ad-text except in specific situations, like for resellers and informational sites.
Google stressed its commitment to complying with local laws and stated that it investigates reported trademark usage in ad-text, promptly removing offending ads and blocking advertisers from referencing the trademark in the future.
On the announcement, Division Bench of Justice Vibhu Bakhru and Justice Amit Mahajan, said:
It’s hard to believe that Google can claim immunity under Section 79 of the IT Act for trademark infringement through its use of trademarks as keywords in its Ads Programme. Google is not a mere bystander, but rather operates an advertising business over which it has extensive control.
Commenting on the court ruling, Google said:
As an organization, we adhere to all local regulations. Our goal is for users to have confidence in the advertisements on our platform, so we work tirelessly to ensure that ads are transparent and truthful, providing the information necessary for users to make informed choices.