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Introduction
The judgment delivered by the Delhi High Court on 22 May 2026 in the Hindware litigation represents one of the most significant Indian decisions concerning trademark protection in the digital advertising ecosystem. The dispute centered around whether Google, through its AdWords (now Google Ads) programme, could permit advertisers to bid for and use a competitor's registered trademark as a keyword so that advertisements of competing businesses would appear when consumers searched for the trademark owner. The case involved the well-known trademark "HINDWARE", a leading brand in the sanitaryware industry, and raised important questions regarding trademark infringement under the Trade Marks Act, 1999, the scope of Google's liability as an online advertising platform, and the availability of intermediary protection under Section 79 of the Information Technology Act, 2000. The Court ultimately held that Google's conduct in allowing and facilitating the use of the plaintiff's trademark as a keyword amounted to trademark infringement and granted permanent injunction, damages, and costs in favour of Hindware.
Factual and Procedural Background
Hindware Limited, formerly known as HSIL Limited, is a prominent manufacturer and seller of sanitaryware products in India. The company has been using the trademark "HINDWARE" since 1991 and had already been recognized as the proprietor of a well-known trademark by the Delhi High Court in an earlier judgment dated 21 April 2017 in HSIL Limited v. Kripton Ceramics Pvt. Ltd. & Ors.
The controversy began when Hindware discovered that competing sanitaryware companies, namely Cera and Grohe, had availed Google's AdWords programme and had purchased the trademark "HINDWARE" and related expressions as keywords. As a result, whenever consumers searched for terms such as "HINDWARE", "HINDWARE SANITARYWARE", or similar expressions on Google Search, advertisements and sponsored links relating to Cera and Grohe appeared prominently, often above Hindware's own search results.
Two separate suits were instituted before the Delhi High Court. One suit concerned Grohe's advertising activities, while the second concerned Cera and its website developer Omkara Infoweb. During the pendency of the proceedings, Hindware settled its disputes with Grohe, Cera and Omkara Infoweb. Consequently, the surviving controversy before the Court remained between Hindware on one side and Google India and Google LLC on the other.
The litigation continued for several years. Interim injunctions were granted in favour of Hindware as early as 2013 and 2014 restraining the use of "HINDWARE" as an AdWord or keyword. After recording extensive evidence and hearing detailed submissions, the Court finally rendered its judgment in May 2026.
Dispute Before the Court
The central legal issue was whether Google's act of permitting advertisers to bid on and purchase the registered trademark "HINDWARE" as a keyword constituted trademark infringement under Section 29 of the Trade Marks Act, 1999.
Hindware argued that Google was not merely a passive platform. According to the plaintiff, Google actively auctioned, suggested, monetized and sold the trademark to competitors for commercial gain. Hindware contended that such conduct violated its exclusive rights under Section 28 of the Trade Marks Act and amounted to infringement under Sections 29(2), 29(3), 29(6) and 29(8). It was further argued that Google's conduct diluted the distinctiveness of the well-known mark and diverted potential customers searching specifically for Hindware products.
Google, on the other hand, argued that keywords operate invisibly in the backend and are not visible to consumers. According to Google, a keyword is merely a trigger mechanism and does not amount to trademark use. Google further contended that it merely provided an advertising platform and that advertisers alone selected keywords. It relied heavily on the intermediary safe harbour provisions contained in Section 79 of the Information Technology Act, 2000 and also cited earlier decisions including Google LLC v. DRS Logistics (P) Ltd., 2023 SCC OnLine Del 4809; Google LLC v. MakeMyTrip (India) Pvt. Ltd., 2023 SCC OnLine Del 7965; and Policybazaar Insurance Web Aggregator v. Coverfox Insurance Broking Pvt. Ltd., 2023 SCC OnLine Del 5523.
Reasoning and Analysis of the Judge
The Court emphasized that a trademark is not merely a label identifying goods. It is a valuable commercial asset embodying goodwill, reputation, advertising investment and market recognition. The Court observed that the Trade Marks Act protects not only the source-identifying function of a trademark but also its investment and advertising functions.
A significant part of the Court's reasoning focused on Section 28 of the Trade Marks Act. The Court held that registration grants two independent rights to the proprietor: an exclusive right to use the trademark and a right to seek relief against infringement. Thus, the trademark owner's exclusivity extends beyond merely preventing physical copying of the mark.
The Court found that Google had actively enabled and facilitated the use of the trademark "HINDWARE" by competitors. Evidence showed that Google allowed the trademark to be listed as a biddable keyword and that advertisers could purchase it to ensure their advertisements appeared before consumers searching specifically for Hindware products. The Court rejected Google's characterization of keywords as mere invisible backend triggers.
Court observed that Google's advertising model was designed to commercially exploit the goodwill associated with the plaintiff's trademark. The Court held that Google was not a passive conduit. Rather, it actively conducted auctions, suggested keywords, determined advertising rankings and derived revenue from keyword bidding. Therefore, Google could not escape liability by claiming neutrality.
The Court carefully distinguished earlier decisions relied upon by Google. It observed that the cases of Google LLC v. DRS Logistics (P) Ltd., Google LLC v. MakeMyTrip (India) Pvt. Ltd., and Policybazaar Insurance Web Aggregator v. Coverfox Insurance Broking Pvt. Ltd. involved trademarks that were descriptive, generic, or dictionary words. In contrast, "HINDWARE" was a coined and judicially recognized well-known trademark. The Court therefore held that those precedents did not govern the present dispute.
The judgment also contains an important discussion of Section 29(8) of the Trade Marks Act. The Court held that Google's conduct amounted to advertising that took unfair advantage of the plaintiff's trademark and was contrary to honest commercial practices. According to the Court, allowing competitors to bid for and exploit the plaintiff's trademark for commercial gain constituted free-riding on the goodwill painstakingly built by Hindware over decades.
The Court further rejected Google's argument that keyword advertising necessarily promotes competition. While acknowledging that competition benefits consumers, the Court emphasized that competition must be achieved through lawful means. The Court remarked that increased competition cannot justify the auctioning and monetization of another entity's trademark without authorization.
Another major issue was Google's claim of intermediary protection under Section 79 of the Information Technology Act, 2000. The Court extensively examined the statutory framework and precedents relating to intermediary liability. It concluded that Google's actions went far beyond merely hosting or transmitting third-party information. By conducting auctions, facilitating keyword purchases and monetizing trademark use, Google actively participated in the infringing activity. Consequently, the Court held that Google could not claim safe harbour protection under Section 79.
The Court also referred to the Division Bench decision in Amazon Seller Services Pvt. Ltd. v. Amway India Enterprises Pvt. Ltd. & Ors., 2020 SCC OnLine Del 454, while analyzing the scope of intermediary protection. Applying those principles, the Court found that Google's conduct disqualified it from claiming immunity.
The judgment additionally noted that Google's own internal policy changes had allowed trademark bidding despite earlier restrictions. The Court took note of evidence showing that the company anticipated substantial revenue growth from permitting trademark bidding and considered this relevant in assessing Google's role in the infringing activity.
Final Decision of the Court
The Delhi High Court decreed the suits in favour of Hindware and against Google LLC and Google India.
The Court granted a permanent injunction restraining Google from using or permitting the use of the marks "HINDWARE", "HINDWARE SANITARYWARE", "HINDWARE SANITARY", "HINDWARE SANITARYWARE INDIA" or any combination thereof as advertising keywords, AdWords or in any manner amounting to trademark infringement.
The Court further awarded nominal damages of ₹30,00,000 payable jointly and severally by Google LLC and Google India to Hindware. In addition, actual litigation costs were awarded in favour of the plaintiff. The Court also decreed the suit against Omkara Infoweb in terms of the settlement agreement already executed between the parties.
Point of Law Settled
The judgment establishes several important legal principles:
The use of a registered and well-known trademark as a keyword in a search engine advertising programme can amount to trademark infringement under the Trade Marks Act, 1999.
A search engine operator that actively auctions, suggests, promotes and monetizes trademark keywords is not merely a passive intermediary and may be held liable for infringement.
The protection available under Section 79 of the Information Technology Act, 2000 does not extend to activities involving active commercial exploitation of third-party trademarks through keyword advertising.
The exclusive rights granted under Section 28 of the Trade Marks Act protect not only the source-identifying function of a trademark but also its advertising and commercial value.
Commercial competition cannot justify the unauthorized auctioning or monetization of another person's trademark.
The principles applicable to descriptive or generic marks cannot automatically be extended to coined and judicially recognized well-known trademarks.
Date of Order: 22 May 2026
Case Numbers: CS(COMM) 591/2017 and CS(COMM) 592/2017
Neutral Citation: 2026:DHC:4614
Court: High Court of Delhi at New Delhi
Coram: Hon'ble Ms. Justice Mini Pushkarna
Disclaimer: Readers are advised not to treat this as substitute for legal advise as it may contain errors in perception, interpretation, and presentation.
Written By: Advocate Ajay Amitabh Suman, IP Adjutor [Patent and Trademark Attorney], High Court of Delhi
Headnote
Trademark Law – Google Ads – Keyword Advertising – Well-Known Trademark – Intermediary Liability – Section 29 Trade Marks Act – Section 79 Information Technology Act – Hindware Trademark. Delhi High Court held that Google's practice of permitting competitors to bid on and purchase the well-known trademark "HINDWARE" as a keyword under its AdWords programme constituted trademark infringement. The Court ruled that Google actively facilitated and monetized the use of the plaintiff's trademark and therefore could not claim safe harbour protection as an intermediary under Section 79 of the Information Technology Act, 2000. Permanent injunction, ₹30 lakh damages and actual costs were awarded in favour of Hindware.
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