MakeMyTrip Trademark Battle and the Future of Digital IP in India

CCl- Compliance Calendar LLP

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In a rapidly growing digital economy, the brand identity is not long its identity its all only a how to promote its brand name through television ads or google search. So now the battleground of trademark is reached to the google search page, domain name, and sponsored ads etc. One of the most high-profile Indian legal battles that tested this evolving space was the MakeMyTrip vs Google and Booking.com trademark dispute.

The MakeMyTrip trademark battle has brought this issue to the forefront in Indian jurisprudence. The case sets a crucial precedent in the legal treatment of digital trademarks and raises fundamental questions about fair use, online competition, and intermediary liability in the digital space

The Digital Battlefield: Google Ads and Keyword Bidding

As MakeMyTrip (MMT) grew into a top travel booking platform in India, it started facing a new kind of challenge not from other duplicate websites, but from how its name was being used in online advertising. MMT get noticed that some of its biggest competitors, especially Booking.com, were using “MakeMyTrip” as a keyword in Google Ads. This meant that when someone typed “MakeMyTrip” into Google, the first few results might be ads for Booking.com or other travel websites even though users were clearly looking for MMT.

MMT believed that this was possibly illegal and the use of the MakeMyTrip name in ads was infringement and misuse trademark. The brand name was being used to get attention and attract customers who were searching for MMT. According to MMT, this not only confused users, but also infringe its reputation and helped competitors to get unfairly gain of the business by using MMT’s popularity. The company claimed that this kind of advertising gave competitors an unfair advantage, reduced the value of the MMT brand, and could mislead people into thinking there was a connection between the companies when there wasn’t. Rivals company use MMT brand name as a paid keyword on Google for harmed its business, and it took the issue to court, asking for protection under Indian trademark law. This raised important questions about how brand names can be used in online ads and whether doing so breaks any rules of the trademark act.

Court Observations and Judgment

In a landmark decision, the Delhi High Court ruled in Favor of MakeMyTrip and granted a temporary injunction against Booking.com, prohibiting the use of "MakeMyTrip" as a keyword in its Google Ads. The Court held that such usage constituted trademark infringement under Section 29 of the Trademarks Act, 1999, as it unfairly exploited the brand identity and goodwill associated with MakeMyTrip.

The Court emphasized that the essence of trademark protection lies in safeguarding the unique identity and goodwill of a brand. By using MakeMyTrip’s trademark to redirect user traffic to a competing website, Booking.com was not engaging in fair competition but rather misleading consumers. The judgment clarified that the use of another’s trademark, even if only as a keyword and not visible to the end-user, still constitutes use "in the course of trade."

the Court also made strong observations regarding Google’s role. While acknowledging the Google operation in-between the both the platform, the Court observed that Google cannot take a completely passive stance when its platform is used to facilitate such violations. The Court stressed on the need for greater accountability from digital mediators, especially when complaints are raised about specific advertisements. This judgment has shifted the legal for online advertising in India, particularly in how digital trademarks are interpreted and enforced. The decision strengthens the idea that online platforms and advertisers must operate with a delicate sense of responsibility and caution when dealing with registered trademarks.

Legal Precedent and Its Implications (Including Supreme Court Ruling)

The MakeMyTrip ruling has not only reshaped the enforcement of trademark rights in the digital sphere at the High Court level but has also received authoritative backing from the Supreme Court of India. In May 2024, the Supreme Court dismissed the appeals filed by Booking.com and Google. The apex court made it properly clear that the unauthorized use of a competitor’s registered trademark even when used discreetly as a keyword in online advertisements cannot be justified as fair use or legitimate marketing. This strong endorsement from the highest judicial authority reinforces the principle that digital platforms and advertisers must respect trademark boundaries, both visibly and behind the scenes.

This affirmation by the Supreme Court has elevated the decision to a binding precedent across all Indian jurisdictions, sending a strong message to digital advertisers and intermediaries alike-

Key implications of this legal development include:

Binding Legal Clarity on Keyword-Based Trademark Infringement:

With the Supreme Court’s decision, there is now a definitive and binding legal position across India that using a competitor’s trademark registration in keyword advertising amounts to infringement particularly when it results in consumer confusion or unfairly diverts the goodwill of the original brand. This clarity removes previous ambiguities surrounding the digital use of trademarks and provides a solid legal foundation for brand owners to challenge unauthorized keyword practices.

Expanded Accountability for Digital Intermediaries: 

Platforms like Google can no longer hide behind safe harbour rules if they allow known trademark misuse. Once informed, they must act quickly to review and remove such ads. This makes them more responsible for preventing online trademark violations.

Safeguarding Digital Goodwill and Reputation: 

The courts have made it clear that a brand’s online identity is just as important as its traditional reputation. Digital goodwill is now legally protected under trademark law, ensuring that businesses can defend their online brand presence.

Overall, the MakeMyTrip case stands as a landmark in Indian IP law. It provides much-needed clarity on digital trademark use, strengthens protections for online brands, and sets a strong deterrent against misuse. In a rapidly evolving digital marketplace, this ruling ensures that trademark rights are upheld both visibly and behind the scenes.

Conclusion

The MakeMyTrip trademark battle marks a defining moment in the evolution of Indian intellectual property law in the digital era. By addressing the complex interplay between keyword advertising, trademark rights, and platform liability, the judiciary has set a clear and binding precedent that protects the integrity of online brand identities. The rulings by both the Delhi High Court and the Supreme Court have not only clarified the legal position on keyword-based infringement but have also expanded the responsibilities of digital intermediaries like Google. This case affirms that digital goodwill holds equal value to traditional brand reputation and deserves robust legal protection. As India’s digital economy continues to grow, the MakeMyTrip case will serve as a guiding light for businesses, legal practitioners, and policymakers navigating the future of digital IP rights.

Frequently Asked Questions (FAQs) 

Q1. What was the MakeMyTrip vs Booking.com and Google case about? 

Ans. This case involved MakeMyTrip accusing Booking.com of using its registered trademark "MakeMyTrip" as a keyword in Google Ads, which redirected traffic to Booking.com. MakeMyTrip claimed this was trademark infringement and misleading to users.

Q2. Why did MakeMyTrip go to court? 

Ans. MakeMyTrip approached the Delhi High Court to protect its brand name, arguing that competitors were using its trademark to attract its potential customers unfairly through keyword advertising, thereby harming its business and reputation.

Q3. What did the Delhi High Court decide? 

Ans. The Delhi High Court ruled in Favor of MakeMyTrip, granting a temporary injunction to stop Booking.com from using “MakeMyTrip” as a keyword. It held that this practice violated Section 29 of the Trademarks Act, 1999.

Q4. What role did Google play in the case? 

Ans. Google, as the platform hosting the keyword ads, was criticized by the Court for acting passively. The Court emphasized that intermediaries like Google must take responsibility once they are informed of trademark misuse on their platforms.

Q5. What did the Supreme Court decide in 2024? 

Ans. In May 2024, the Supreme Court dismissed the appeals of Booking.com and Google, upholding the Delhi High Court’s decision. It confirmed that using a competitor's trademark as a keyword, even if invisible, is not protected under fair use.

Q6. Is this judgment now applicable across India? 

Ans. Yes. Since the Supreme Court upheld the decision, it has become a binding precedent for all Indian courts, meaning the same legal principle must be followed across all jurisdictions in India.

Q7. Can companies now use competitors' names as keywords in digital ads? 

Ans. No. After this ruling, using a competitor’s registered trademark as a keyword especially if it causes confusion or misleads users is considered infringement and is legally prohibited.

Q8. What does this mean for digital platforms like Google? 

Ans. Digital platforms are now expected to act promptly when informed about trademark misuse. They cannot claim safe harbour protections if they knowingly allow such infringement to continue.

Q9. How does the judgment protect online businesses? 

Ans. It strengthens protection for digital goodwill and brand reputation. Online businesses can now take legal action if others misuse their name in hidden online mechanisms like search engine keywords.

Q10. Does this case suggest a need for updates in Indian law? 

Ans. Yes. The case highlights gaps in the current Trademarks Act and IT Act when it comes to digital advertising and online infringement, suggesting a need for modern legal reforms to keep pace with digital commerce.

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