Indian Court Rules Google Liable for ₹3M Trademark Ad Infringement
Delhi High Court ruled on May 22 that Google’s AdWords infringed Hindware’s trademark and awarded ₹3 million in nominal damages. Founders Nithin Kamath and Sridhar Vembu criticized Google’s keyword ad system for allowing rivals to divert branded search traffic, prompting calls for policy and technical changes.
1. Court Ruling Details
On May 22, the Delhi High Court held Google liable for trademark infringement in a dispute with Hindware, finding that its AdWords platform sold the trademarked term “Hindware” without authorization and awarded ₹3 million (about $31,600) in nominal damages. Justice Mini Pushkarna’s 163-page judgment rejected Google’s passive intermediary defense and stated that automated ad tools enabling unauthorized use of trademarks violated Section 28 of India’s Trade Marks Act.
2. Founders' Backing and Implications
Entrepreneurs Nithin Kamath and Sridhar Vembu publicly praised the verdict, noting that competitors have long used Google’s keyword advertising to siphon branded search traffic and force companies to pay for brand protection. Legal experts say the ruling may compel Google to adjust its AdWords automated processes in India, a market with the world’s second-largest internet user base, and could influence how trademarked terms are handled globally.
