Apr 20 2024, 09:26
Google 1-startups INR2,000 crore ad war is set for a new twist:
After the SC last month upheld a Delhi HC judgement that the use of trademarks as keywords is not infringement, startups are exploring multiple options, including taking the issue to the government and CCI.
For the founders and startups operating in the Indian online consumer space, the last couple of weeks have been all about coming to terms with the latest Supreme Court judgment on Google Ads, and the way forward.
On March 7, the apex court upheld the Delhi High Court's 2023 judgment that usage of trademarks as keywords is not infringement and dismissed MakeMyTrip's appeal, dealing a huge blow to the startup ecosystem.
While such developments are par for the course, startups have taken this particularly hard for one reason. In 2022, after multiple companies dragged the search giant to court on the issue, the Delhi HC offered a brief respite. In the case of MakeMyTrip versus Booking.com and Google, the HC pronounced an interim judgment ruling that the usage of trademarked keywords is infringement, and in violation of the Indian Trademark Act.
The euphoria that followed this ruling was, however, short lived. With the latest SC judgment, startups are preparing for a push back. Ravi Kumar, founder, udChalo, a Pune- based travel startup focused on defence personnel, said this was a huge blow and will impact smaller startups, as these will now need to spend a large chunk of their marketing budget just to protect their brand. He further added that the founders are exploring multiple ways to combat this, including taking the issue to the government and knocking on the door of the Competition Commission of India (CCI).
For Google, this is a cash cow. According to data from business-intelligence platform Tofler, advertising revenue accounts for about 23.37% of the total turnover of the company. Google India revenue stood at INR9,439 crore in FY22.
source: et
Apr 21 2024, 10:54