In a significant legal development, the Delhi High Court has ruled against Google's claim to safe harbour protection under the Information Technology Act, 2000, and immunity from liability for trademark infringement in its Ads Programme. The division bench comprising Justices Vibhu Bakhru and Amit Mahajan emphasized that Google cannot absolve itself from liability for using trademarks as keywords in its Ads Programme, indicating a major blow to the tech giant's defense.
The court's decision came during an appeal filed by Google challenging an earlier single judge order issued on October 30, 2021. The original order held that Google cannot evade responsibility for ensuring that keywords used in its Ads Programme do not infringe trademarks. The suit was initiated by DRS Logistics to prevent Google India, Google LLC, and Just Dial from using its registered trademark "AGARWAL PACKERS & MOVES or DRS LOGISTICS" as keywords, meta tags, or trademarks.
The division bench found no fault with the single judge's conclusion and supported the stance that Google's use of trademarks as keywords equates to advertising under the Trademarks Act. The bench highlighted that Google's role goes beyond that of a passive intermediary, as its Ads Programme actively suggests keywords that maximize clicks, indicating Google's proactive involvement in keyword selection.
Furthermore, the court rejected Google's claim of being a passive service provider and noted that the tech giant actively encourages and suggests the use of keywords. It also questioned Google's assertion that the use of trademarks as keywords does not impact their character or reputation. The court maintained that while not inherently detrimental, if advertisements displayed undermine a trademark's character, an infringement action could be initiated.
The Delhi High Court's ruling directs Google to actively monitor and remove ads that infringe trademarks. This verdict holds the tech company accountable for ensuring that keywords used in its Ads Programme respect trademark rights. The decision could have far-reaching implications for Google's operations in India, potentially requiring the company to implement additional screening measures to prevent trademark infringement.
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