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IN THE HIGH COURT OF DELHI
V. Kameswar Rao, J.
DRS Logistics (P.) Ltd. - Appellant
Versus
Google India Pvt. Ltd. - Respondent
CS(COMM) 1 of 2017 & I.As. 21153 of 2011, 4474 of 2014, 2645 of 2020, 2646 of 2020 and 7203 of 2020
Decided On : 30-10-2021




The use of trademarks as keywords in advertising can constitute infringement under trademark laws, even if not visible to consumers, as it may mislead and divert traffic from legitimate trademark owners.

Headnote:(A) Trade Marks Act, 1999 - Sections 2, 29(6), 29(7), 29(8) - Permanent injunction sought against use of trademarks as keywords in Google's AdWords program - Plaintiff contends that usage diverts traffic from registered trademarks, leading to passing off - Court finds that invisible use of a trademark constitutes infringement under Section 29 - Google's policy on keywords under AdWords adjudicated as insufficient for protecting trademark rights - Court orders Google to investigate complaints regarding keyword use leading to potential confusion. (Paras 1, 76-129)

(B) Trademark Infringement - Establishing confusion - Court emphasizes the need for trademarks to be protected against unauthorized use that misleads consumers, holding that consumers in India may not discern differences in sponsored results and organic search results. (Paras 96-110)

(C) Role of Google as intermediary - Court rules that Google cannot claim immunity from liability under Section 79 of the IT Act for facilitating trademark infringement through AdWords, as it plays an active role in the selection of keywords and advertisements. (Paras 111-127)

Findings of Court:
The use of registered trademarks as keywords in Google's advertising program is likely to cause confusion and infringe on the trademark rights of the plaintiffs.

Result: Applications for injunction allowed, subject to trial. (Para 128)

Table of Content
1. plaintiff seeks injunction against trademark infringement. (Para 1 , 2 , 4)
2. plaintiff argues google's keyword policy leads to trademark infringement. (Para 3 , 5 , 7 , 8 , 10)
3. court acknowledges google's responsibility regarding keyword use. (Para 9 , 11 , 12)
4. court reviews standards for trademark use and passing off. (Para 19 , 20 , 22 , 25)
5. trademark use as keywords can infringe trademark rights. (Para 77 , 78 , 81 , 100)
6. court orders google to investigate trademark keyword use. (Para 127 , 129)

JUDGMENT

V. Kameswar Rao, J.

IAs. 21153/2011 and 4474/2014

1. The present suit has been filed by the plaintiff seeking permanent injunction against the defendants. The plaintiff has also filed the I.A. 21153/2011 under Order XXXIX Rules 1 and 2 of the Code of Civil Procedure, 1908 (`CPC' hereinafter) with the following prayers:

    "A. The Defendants, it directors, officer, servants, agents, representatives and assigns be restrained by an order of interim and ad-interim ex-parte injunction from:

    (i) using or permitting third parties to use AGARWAL and/or AGGARWAL PACKERS & MOVERS and/or DRS LOGISTICS or any other trade mark or name similar to the Plaintiffs' registered trademark AGARWAL PACKERS & MOVES and/or DRS LOGISTICS either as a key word or as a meta tag or as a trade mark or part of a key word or meta tag or trade mark or in any other manner so as to infringe the registered trade marks of the Plaintiffs;

    (ii) permitting third parties from advertising AGARWAL and/or AGGARWAL, PACKERS & MOVERS and/or DRS LOGISTICS in various combinations on its website or any trade mark or name similar to the Plaintiffs' registered trade mark AGARWAL PACKERS & MOVERS and/or DRS LOGISTICS or any other trade mark either as a trade mark or part of a trade mark, a trade name or corporate name or as part of a trade or corporate name, or in any other manner whatsoever so as to allow third parties from passing off their services or business as and for the services or business of the Plaintiffs; except Agarwal Packers & Movers Ltd. or any other company/entity enjoying registered users licence or permission to use the name

    (iii) permitting any third parties from using any other indicia whatsoever to show any association or affiliation or connection of with the Plaintiffs or their services on its website;

    B. The Defendants, it directors, officer, servants, agents, representatives and assigns be restrained by an order of interim and ad-interim ex-parte injunction from:

    (i) remove all references on its sponsored links to third party websites, when the words AGARWAL and/or AGGARWAL, PACKERS & MOVERS and / or DRS LOGISTICS are used in various combinations in the search engine of the Defendant website. except Agarwal Packers & Movers Ltd or any other company/entity enjoying registered user license or permission to use the name:

    C. The Defendants be called upon to immediately and forthwith allow inspection of their accounts to assist in ascertaining damages;

    D. Costs of the present application be awarded to the Plaintiffs; and

    E. Any other relief which the Hon'ble Court thinks fit and proper in the circumstances of the case be allowed in favour of the Plaintiffs and against the Defendant."

2. The plaintiff has subsequently filed another application numbered as I.A. 4474/2014 under Order XXXIX Rules 1 and 2, CPC, seeking ad interim relief against defendant No. 3, i.e., Google LLC with the following prayers:

    "A. The Defendant No.3, it directors, officer, servants, agents, representatives and assigns be restrained by an order of interim and ad-interim ex-parte injunction from:

    (i) using or permitting third parties to use AGARWAL and/or AGGARWAL PACKERS & MOVERS and/or DRS LOGISTICS or any other trade mark or name similar to the Plaintiffs' registered trademark AGARWAL PACKERS & MOVES and/or DRS LOGISTICS either as a key word or as a meta tag or as a trade mark or part of a key word or meta tag or trade mark or in any other manner so as to



















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