Google not eligible for safe harbour under Section 79 of IT Act: Court

A recent court ruling regarding Google’s liability under Section 79 of the Information Technology Act (IT Act) has stated that Google cannot claim safe harbour protection if it infringes on trademarks. The Court argued that Google is not a passive intermediary but runs an advertisement business, giving it pervasive control over its operations.

Background

Prior to 2004, Google did not allow the use of trademarks as keywords. However, the company changed its policy to increase revenue and introduced a tool that actively searches for effective terms, including well-known trademarks as keywords. It is believed that this change resulted in at least $100 million in additional revenue for Google in 2009.

Ruling on safe harbour

The Court determined that Google’s use of trademarks as keywords is similar to using trademarks as meta-tags. Both practices serve the purpose of identifying relevant websites in search results. Therefore, Google cannot claim safe harbour protection under Section 79(1) of the IT Act for its Ads Programme.

Implications

This ruling has significant implications for Google’s liability in trademark infringement cases. It clarifies that Google’s advertisement business cannot be considered separate from its role as an intermediary, denying the company the benefits of safe harbour protection. Google may now be held liable for trademark infringement if it allows the use of trademarks as keywords in its Ads Programme.

Summary:

  • Google cannot claim safe harbour protection if it infringes on trademarks, according to a recent court ruling.
  • The court stated that Google is not a passive intermediary but runs an advertisement business with pervasive control.
  • Prior to 2004, Google did not allow the use of trademarks as keywords, but it later changed its policy for increased revenue.
  • The court equated the use of trademarks as keywords with using trademarks as meta-tags.
  • This ruling has implications for Google’s liability in trademark infringement cases.

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