The Delhi High Court has ruled that Google's Ads program falls under the purview of the country's Trademarks Act and the company must remove ads that infringe upon trademarks in a major decision that may redefine online advertising's legal landscape. From a report: The decision), delivered by a division bench of Justice Vibhu Bakhru and Justice Amit Mahajan last week, observed that Google was an "active participant" in the use of the trademarks of proprietors. Google's practice of suggesting competitors' trademarks as keywords to advertisers yielded significant profits for the search giant via keyword sales. This case was spurred by a complaint from logistics firm DRS, which pointed out that searches for its trademark "Agarwal Packers and Movers" returned competitor websites. DRS alleged that Google's ad mechanism exploited its trademark to divert users to rival sites. Upholding the initial order, the division bench directed Google to act on DRS's grievances and remove offending ads.
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