One of the most widely used approach by organizations to boost their online visibility is promoting their business by using keywords in the Google Ads Program. In a recent decision, the Delhi High Court had to consider and decide whether the use of a registered trademark as a keyword, constitutes infringement.

MakeMyTrip (India) Private Limited (hereinafter ‘MIPL’) is one of the largest travel companies in India. MIPL had filed the Commercial Suit against Google LLC (hereinafter “Google”), inter alia, alleging that the use of MIPL’s trademarks viz. ‘MakeMyTrip’ and ‘MMT’ as keywords in the Google Ads Program for displaying the links/ads of <Booking.com> (a well-known platform offering travel services), constitutes infringement of its trademarks. AAn ad-interim order (hereinafter the ‘impugned order’) was issued by the said Court.

Aggrieved by the impugned order, an appeal was filed by Google  before the Delhi High Court (“High Court”). The High Court opined that the use of trademarks as keywords by competitors, absent any confusion or deceit, does not per se amount to infringing use. The High Court reasoned that the use of trademarks as keywords cannotbe construed as applying the trademark to any material intended to be used for labelling or packing goods, as a business paper, or for advertising goods or services. In this context, it is noteworthy that in the present case, the trademark was not applied to any material when used as a keyword. Neither Google nor the advertiser applies the trademark on any material. Neither of them do so to any material intended to be used for labelling or packaging of goods or as a business paper. There is no application to any material for advertising goods or services.

The Court held that “there was nothing illegal in Google using the trademarks as keywords for display of advertisements if it did not result in any confusion or mislead internet users to believe that sponsored links or ads displayed were associated with the proprietors of the trademarks.”

In light thereof, the impugned order was set aside.