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Indian court ruling threatens Google’s advertising revenue model



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The Delhi High Court has ruled that Google’s Ads Programme falls under the purview of the trademarks act, meaning the search giant’s use of trademarks as keywords amounts to “use” under the act, in a major decision that may redefine online advertising’s legal landscape.
The decision (PDF), 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 …

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