The legal battle between MakeMyTrip and Google over alleged trademark infringement through the Google Ads program reached a conclusion as the Supreme Court dismissed MakeMyTrip’s appeal on Thursday. The apex court’s decision upheld the Delhi High Court’s division bench order from December 2023, which overturned a single bench interim order that favored MakeMyTrip.
MakeMyTrip had accused Google of benefiting its rival company Booking.com by displaying sponsored links through the Google Ads program. The travel company alleged that Booking.com gained undue prominence and benefited from MakeMyTrip’s reputation by appearing above MakeMyTrip’s links in Google search results.
However, the Supreme Court ruled that there was no likelihood of confusion for users, as Booking.com was not encroaching on MakeMyTrip’s trademark. The court determined that users searching for MakeMyTrip’s website would not mistakenly end up on Booking.com’s platform.
The legal dispute dates back to May 2022 when a single bench of the Delhi High Court expressed an interim view that the use of MakeMyTrip’s registered trademark as a keyword on Google Ads by a competitor like Booking.com could amount to trademark infringement. However, the subsequent division bench ruling in December 2023 overturned this interim order.
During the proceedings in the Supreme Court, MakeMyTrip argued that Google’s display of Booking.com’s sponsored links above its own adversely affected its business interests. MakeMyTrip contended that Booking.com, by paying for these sponsored links, gained an unfair advantage and piggybacked on MakeMyTrip’s reputation.
In response, Booking.com and Google maintained that the Google Ads program operates on an auction basis, with no preference given to any particular advertiser. They argued that MakeMyTrip’s trademark did not appear anywhere on the screen, and there was no direct association between Booking.com’s sponsored links and MakeMyTrip’s brand.
The Supreme Court’s decision not only settles the legal dispute between MakeMyTrip and Google but also provides clarity on the use of trademarks in online advertising platforms like Google Ads. The ruling underscores the importance of demonstrating a likelihood of confusion for trademark infringement claims to succeed in such cases.
The outcome of this case has significant implications for e-commerce companies and online advertisers, as it establishes legal precedent regarding the use of trademarks in digital marketing campaigns. Companies will need to exercise caution and adhere to established legal standards to avoid infringing on competitors’ trademarks and facing potential legal challenges.
Overall, the Supreme Court’s dismissal of MakeMyTrip’s appeal represents a victory for Google and Booking.com in the ongoing legal battle over trademark infringement allegations. It reaffirms the principle that online advertising platforms like Google Ads operate within the bounds of trademark law and do not automatically constitute infringement based on keyword usage alone.
