A recent decision by the Delhi High Court has placed Google’s advertising model under intense scrutiny following a ruling that found the tech giant liable for trademark infringement. The court determined that Google’s keyword advertising practices allowed competitors to exploit brand names, leading to a significant legal precedent regarding how search engines manage trademarked terms.

The ruling originated from a dispute involving Hindware, a manufacturer of bathroom fittings. Justice Mini Pushkarna, presiding over the case, rejected Google’s defense that the company acts merely as a passive intermediary. Instead, the court found that by allowing rivals to use ‘Hindware’ as a keyword to target customers, Google’s AdWords platform facilitated unauthorized commercial gain through the use of protected trademarks. As a result, the court awarded Hindware ₹3 million in damages.

The decision has sparked widespread discussion among prominent Indian entrepreneurs, including Zerodha founder Nithin Kamath and Zoho founder Sridhar Vembu. These leaders have argued that Google’s advertising tools have long enabled competitors to divert traffic from established brands, forcing companies to spend heavily to protect their own identities. Kamath noted that search results often prioritize competitor ads over the actual brand being searched, a practice that has persisted for years.

While Google maintains that its global policies prohibit the use of trademarked terms within the actual text of an advertisement, the court’s focus on the use of keywords as a participative activity suggests a need for platform re-evaluation. Legal experts suggest that while the ruling may not fundamentally alter the liability landscape for all internet companies, it may compel platforms to scrutinize their automated tools to ensure they do not actively encourage the use of trademarked terms by advertisers.