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For years, businesses across sectors have used a common digital marketing strategy — bidding on rival brand names as keywords on Google Ads to attract potential customers. So, someone searching for one brand could also end up seeing ads from a competitor.

But a fresh court ruling suggests that practice may now face closer legal scrutiny.

The Delhi High Court has ruled that Google cannot allow rival companies to bid on the trademarked keyword “HINDWARE” through its advertising platform. The judgment came in a trademark dispute filed by HSIL Ltd, the owner of the Hindware brand.

The court agreed with Hindware’s argument and held that trademarked brand names cannot be commercially used in a way that unfairly benefits competitors.

Importantly, the court also rejected Google’s defence that it was only acting as an intermediary.

Instead, the judgment said Google played an active commercial role by selling keywords, conducting ad auctions and earning revenue from those searches.WHY THIS RULING MATTERS FOR ONLINE ADVERTISING

The decision could have consequences far beyond the sanitaryware business.

Competitor keyword bidding is widely used across industries such as ecommerce, fintech, travel, food delivery and direct-to-consumer brands. Companies often bid on rival brand names to improve visibility and attract customers searching online.

Legal experts believe the ruling signals that courts may now take a tougher approach towards digital advertising practices involving trademarks.

“The Court observed that invisibility does not dilute the legal character of such use where it is commercially deployed to attract consumer traffic intended for the trademark owner,” Kumar said.

He added that the court carefully examined Google’s advertising system and concluded that the platform was doing more than simply acting as a passive intermediary.

According to him, the judgment noted Google’s active involvement through keyword facilitation, advertising tools and monetisation mechanisms.

For businesses, the ruling could mean rethinking how online advertising campaigns are designed.

Many companies have relied on competitor keyword bidding as a quick way to capture customers already searching for rival products. But if trademark owners increasingly challenge such practices, legal risks could rise.

He pointed out that while earlier court rulings had already raised concerns over trademark-based advertising, the Hindware judgment suggests courts may intervene when such practices lead to consumer diversion, confusion or unfair commercial gains.WHAT LIES AHEAD FOR GOOGLE AND DIGITAL ADVERTISING?

The ruling also raises larger questions for Google’s advertising business in India.

If courts continue to restrict the use of trademarked keywords, brands may increasingly push platforms to block competitors from appearing alongside searches linked to their names.

The judgment may not end competitor keyword advertising overnight, but it could mark the beginning of a more cautious era for online marketing in India.- EndsPublished By: Jasmine anandPublished On: May 29, 2026 16:29 IST