The Delhi High Court’s recent ruling holding Google liable for trademark infringement over keyword advertising has drawn strong support from Indian startup founders, including Zerodha’s Nithin Kamath and Zoho’s Sridhar Vembu, who say the verdict could curb long-standing practices that divert traffic away from brands.
Reacting to the May 22 judgment in the Hindware-Google case, Zerodha cofounder Kamath said the ruling gives companies a legal remedy against competitors bidding on trademarked brand names through Google Ads. He noted that searches for ‘Zerodha’ displayed competitor advertisements, a practice he claimed has resulted in lost business for the startup.
Kamath argued that brands are often forced to spend money bidding on their own trademarked names simply to prevent rivals from capturing their traffic.
“If you own a business and have a trademarked name for your business, you still have to pay Google just to hopefully make your name too expensive for your competition to run ads on it,” he said, adding that the ruling could help create a more level playing field for startups competing with larger, better-funded rivals.
He also flagged similar concerns in app stores, where searches for a brand frequently surface competitor advertisements around an app listing. Kamath said such ads can be even more impactful than web search ads because users often install an app directly after clicking, leading to higher conversion rates and potentially greater diversion of customers from the intended brand.
Zoho founder Sridhar Vembu echoed the sentiment, calling Google’s practice “completely unethical” and welcoming the court’s decision.
“What Google was doing was completely unethical and I am glad it has been found illegal in India. They need to be held to account for these shady business practices,” Vembu wrote in a post.
The judgment stems from a lawsuit filed by Hindware, which alleged that competitors purchased its trademarked name as a keyword on Google Ads, causing rival sponsored links to appear prominently in search results. Justice Mini Pushkarna ruled that Google played an active commercial role by selling keywords and conducting ad auctions, rejecting the company’s claim that it was merely an intermediary.
However, some startup founders have told ET that the ruling may disproportionately benefit established brands while making it harder for smaller companies to compete. They argue that larger firms with strong brand recognition and legal resources stand to gain the most, as they can prevent competitors from using their trademarks as advertising keywords.
