Court ruling on Google advertising tools may transform online ads

A landmark ruling holding that Google infringed on trademark rights by allowing competitors to use protected names as advertising keywords may transform the online ads market.

The court ordered Google to pay damages of $31,600 in damages in a ruling officially issued on May 22. The Delhi High Court reportedly says Google allowed competing firms of India’s sanitaryware maker Hindware to use “Hindware” as an advertising keyword to target their own ads.

The court said “the manner in which Google operates its AdWords Policy makes it clear that Google sells ​or auctions the use of the trademark ... without any ​authorization from the proprietor of the trademark

The brand managers and lawmakers on Friday publicly supported the ruling, analyzing that it carries broader implications for the digital marketing industry.

In this regard, Nithin Kamath, the founder of Zerodha said that his brand has gone through similar issues and noted that the ruling now works to “open up a route for legal recourse."

Founders noted that Google implementing this ruling could ultimately change the advertising economics for corporate enterprises. 

Google has not released any comments at this time, though it views India as a core market in its global investment outlook.