In a landmark decision, the Delhi High Court recently ruled in favor of Google LLC in a trademark infringement case filed by MakeMyTrip (MIPL). The court set aside an injunction order from 2022 that restrained Google from using the trademark "MakeMyTrip" as a keyword on its Google Ads Program. The division bench held that the use of trademarks as keywords does not constitute infringement when there is no confusion or unfair advantage caused. This ruling has significant implications for the use of trademarks in online advertising and search engine optimization. Refer to the case here.
MakeMyTrip, a leading online travel company in India, alleged that Google's use of their trademark as a keyword on the Google Ads Program, along with Booking.com's bidding on the same keyword, led to search results that included Booking.com's address even when users searched for "MakeMyTrip." MakeMyTrip claimed that this constituted trademark infringement under Section 29 of the Indian Trademarks Act, 1999.
The single judge in the case had initially ruled in favor of MakeMyTrip, stating that the use of the trademark as a keyword amounted to infringing use under Section 29(4)(c) of the Act. However, the division bench disagreed with this interpretation and set aside the injunction order.
The Delhi High Court relied on its previous decision in the case of Google LLC v. DRS Logistics, where it held that the use of trademarks as keywords does not amount to "use as trademarks" and therefore does not constitute infringement under Section 29(1) of the Act. The court emphasized that the use of trademarks as keywords by competitors, absent any confusion or deceit, does not per se amount to infringing use.
The court noted that when users searched for "MakeMyTrip" on Google's search engine, a sponsored link to Booking.com appeared after MakeMyTrip's organic search result in seven out of ten cases. However, the court concluded that this did not cause confusion in the mind of the internet user since Booking.com is also a well-known platform offering similar travel services. The court stated that it could not accept the view that the use of MakeMyTrip as a keyword by Booking.com amounted to infringing use under Section 29(4)(c) of the Act because the services offered by Booking.com were similar to those covered by MakeMyTrip's trademark.
Furthermore, the court clarified that the use of trademarks as keywords by Google and advertisers does not involve applying the trademark to any material intended for labeling, packing, or advertising goods or services. Therefore, it does not fall within the scope of Section 29(8) of the Act, which deals with unfair advantage and contrary practices in industrial or commercial matters.
The Delhi High Court's ruling in favor of Google has significant implications for trademark law and online advertising practices. It establishes that the use of trademarks as keywords in online advertising does not automatically constitute infringement if there is no confusion or unfair advantage caused.
This ruling aligns with the court's previous decision in the Google-DRS Logistics case, where it recognized that internet users are aware of the basic functions of search engines and are not necessarily searching for the proprietor of a trademark when entering a search query that may contain a trademark. The court emphasized that users may be looking for product or service reviews or searching for competitors in the same field.
The ruling brings clarity to the interpretation of trademark law in the context of keyword advertising. It provides a more balanced approach that takes into account the nature of online searches and the user's intent. It also brings consistency to conflicting judgments on this issue from various high courts in India.
The Delhi High Court's decision in the case of Google LLC v. MakeMyTrip (India) (P) Ltd. has established an important precedent in trademark law and online advertising. The court's ruling that the use of trademarks as keywords does not constitute infringement when there is no confusion or unfair advantage provides clarity and guidance for businesses and advertisers.
Trademark owners should carefully consider the implications of this ruling when formulating their online advertising strategies. It is important to understand the user's intent behind a search query and ensure that the use of trademarks as keywords does not lead to confusion or misrepresentation.
Overall, the court's decision reflects a balanced approach that takes into account the complexities of online advertising and the need to protect both trademark rights and fair competition. It sets a precedent that will shape the future of keyword advertising in India and potentially influence similar cases worldwide. Are you also looking to get your trademark registered or stuck in any trademark procedure? We are here to help you anytime! We will not only help you register your trademark but also protect your mark at all the stages of registration. For any further clarifications and suggestions, kindly connect on 9988424211 or mail at info@ccoffice.in.