Google’s use of trademarks as keywords constituted use in advertising under TM Act

Google LLC Vs DRS Logistics Pvt Ltd. & Ors. (Delhi High Court)

The appeals challenged a common judgment dated 30.10.2021 by the learned Single Judge, which had allowed interim applications filed by DRS Logistics Pvt. Ltd. and Agarwal Packers and Movers Pvt. Ltd. The Single Judge directed Google and Google India to investigate complaints alleging use of DRS’s trademarks as keywords, review advertisements to determine whether they infringed or passed off DRS’s trademarks, and remove or block advertisements if such infringement or passing off was found. The Single Judge also held that the use of trademarks as keywords in the Google Ads Programme amounted to “use” under the Trade Marks Act, 1999 (TM Act), and that Google was not entitled to intermediary protection under Section 79 of the Information Technology Act, 2000 (IT Act).

Google LLC operates the Google Search Engine and the Google Ads Programme, while Google India acts as a non-exclusive reseller of the advertising programme in India. DRS is engaged in the logistics and transportation business and owns several registered trademarks, including “AGARWAL PACKERS AND MOVERS,” which it claimed had acquired substantial goodwill and had been declared a well-known trademark. DRS alleged that Google permitted third parties to use its registered trademarks as advertising keywords, causing sponsored advertisements of competitors to appear in response to searches for DRS’s trademarks, thereby diverting internet traffic and misleading customers. According to DRS, Google profited from such advertising while facilitating trademark infringement.