- The Indian ruling that shakes the global SEM market
- Trademark bidding, also known as brand bidding or trademark protection bidding, is a practice where a company bids on its own trademarked keywords in online advertising platforms like Google Ads. This means that when someone searches for the company's brand name, the company's own ad appears at the top of the search results. **How it works:** 1. **Keyword Targeting:** The company identifies its own trademarked terms (e.g., "Nike shoes," "Apple iPhone," "Coca-Cola"). 2. **Ad Creation:** They create ads specifically designed to appear when these keywords are searched. These ads typically direct users to the company's official website or a specific product page. 3. **Bidding:** They set up bids within the advertising platform's auction system, ensuring their ads have a high chance of appearing when their trademarked keywords are searched. **Why it's controversial:** Trademark bidding is controversial for several reasons, primarily revolving around its impact on competitors and the perceived fairness of online advertising: * **Blocking Competitors (Impression Shielding):** The main criticism is that trademark bidding effectively prevents competitors from advertising on their own trademarked terms. If a company bids aggressively on "Nike shoes," it's highly unlikely that a competitor selling similar shoes (e.g., Adidas) would be able to secure a prominent ad position for that search. This is seen as anti-competitive, as it limits consumer choice and prevents rivals from reaching potential customers who might be interested in alternatives. * **Consumer Choice:** Critics argue that consumers should be able to see a range of options when searching for a product, especially if they are using a brand name. If only the trademark owner's ad appears, consumers might miss out on potentially better deals or different products from competing brands. * **"Sham" Bidding:** Some argue that bidding on your own trademark is unnecessary because consumers searching for a specific brand are already intending to buy that brand. The argument is that the company's organic search result (if well-optimized) or direct website navigation would already capture these customers. Thus, bidding is seen as an artificial way to increase ad spend and dominate results. * **Dispute Resolution and Legal Interpretations:** While it's generally accepted that trademark owners can bid on their own trademarks, there have been legal disputes. These often arise when a competitor uses a trademarked term in their ad copy or as a keyword, leading to accusations of trademark infringement. However, simply bidding on a trademarked keyword is usually not considered infringement, as long as the ad copy doesn't misuse the trademark or create confusion. The controversy often stems from the *extent* to which brand owners should be allowed to use this practice to exclude others. * **Market Dominance:** For large, well-established brands, trademark bidding can further entrench their market dominance, making it even harder for smaller or newer competitors to gain visibility. **Counterarguments for Trademark Bidding:** Companies that engage in trademark bidding often defend it by stating: * **Brand Protection:** They argue it's crucial to protect their brand reputation and ensure that consumers are directed to official sources, preventing them from landing on fraudulent sites or misleading advertisements. * **Customer Experience:** They want to provide the best and most accurate user experience by directing customers directly to their products. * **Preventing Competitors from "Free-Riding":** They argue that competitors shouldn't be able to benefit from the brand equity and marketing investment of others by appearing on trademarked keywords. * **Driving Sales:** It's a legitimate marketing strategy to capture high-intent traffic. In summary, trademark bidding is a common but controversial practice where brands bid on their own trademarked keywords. While it can be effective for brand protection and capturing direct sales, it's criticized for potentially stifling competition and limiting consumer choice.
- The immediate impact on advertising platforms
- What should Italian SMEs with active campaigns do now
- A Milanese agency's view on SEM compliance risk
- Outlook for 2026-2027: Towards New Keyword Advertising Regulation
An Indian court has issued a ruling that calls into question how Google manages trademarked keywords in advertising campaigns. The decision has received immediate support from numerous founders and entrepreneurs in the tech sector. Additionally, several legal experts have pointed out that the ruling could force platforms to review their trademark bidding policies.
For Italian SMEs investing in Google Ads campaigns, the topic is not abstract. In fact, purchasing keywords corresponding to a competitor's name is a common practice in SEM. However, this ruling opens up scenarios of greater responsibility for both advertisers and the platforms themselves. Consequently, it is advisable to review your keyword targeting strategies with attention to compliance.
At SHM Studio, we continuously monitor regulatory and advertising policy evolution to offer our SME clients a sustainable SEM approach that's free from legal risks. In summary, this update requires a rapid evaluation of active campaigns, especially for those operating in competitive markets where brand bidding is a frequent lever.
The Indian ruling that shakes the global SEM market
In late May 2026, an Indian court issued a ruling that is destined to spark debate far beyond the subcontinent's borders. The decision concerns the management of Registered trademark keyword within advertising platforms, particularly Google Ads. According to what has been reported by TechCrunch, the ruling immediately received the support of numerous founders and entrepreneurs in the tech sector.
Furthermore, several intellectual property lawyers have stated that the ruling could force platforms to reconsider their policies on so-called trademark bidding. This is the practice where an advertiser buys a competitor's brand name as a keyword. Therefore, the topic directly concerns the SEM strategies of thousands of companies worldwide.
In Italy, this practice is widespread among SMEs operating in competitive sectors. Consequently, understanding the implications of this ruling is an operational priority today, not merely an academic exercise.
Trademark bidding, also known as brand bidding or trademark protection bidding, is a practice where a company bids on its own trademarked keywords in online advertising platforms like Google Ads. This means that when someone searches for the company's brand name, the company's own ad appears at the top of the search results. **How it works:** 1. **Keyword Targeting:** The company identifies its own trademarked terms (e.g., "Nike shoes," "Apple iPhone," "Coca-Cola"). 2. **Ad Creation:** They create ads specifically designed to appear when these keywords are searched. These ads typically direct users to the company's official website or a specific product page. 3. **Bidding:** They set up bids within the advertising platform's auction system, ensuring their ads have a high chance of appearing when their trademarked keywords are searched. **Why it's controversial:** Trademark bidding is controversial for several reasons, primarily revolving around its impact on competitors and the perceived fairness of online advertising: * **Blocking Competitors (Impression Shielding):** The main criticism is that trademark bidding effectively prevents competitors from advertising on their own trademarked terms. If a company bids aggressively on "Nike shoes," it's highly unlikely that a competitor selling similar shoes (e.g., Adidas) would be able to secure a prominent ad position for that search. This is seen as anti-competitive, as it limits consumer choice and prevents rivals from reaching potential customers who might be interested in alternatives. * **Consumer Choice:** Critics argue that consumers should be able to see a range of options when searching for a product, especially if they are using a brand name. If only the trademark owner's ad appears, consumers might miss out on potentially better deals or different products from competing brands. * **"Sham" Bidding:** Some argue that bidding on your own trademark is unnecessary because consumers searching for a specific brand are already intending to buy that brand. The argument is that the company's organic search result (if well-optimized) or direct website navigation would already capture these customers. Thus, bidding is seen as an artificial way to increase ad spend and dominate results. * **Dispute Resolution and Legal Interpretations:** While it's generally accepted that trademark owners can bid on their own trademarks, there have been legal disputes. These often arise when a competitor uses a trademarked term in their ad copy or as a keyword, leading to accusations of trademark infringement. However, simply bidding on a trademarked keyword is usually not considered infringement, as long as the ad copy doesn't misuse the trademark or create confusion. The controversy often stems from the *extent* to which brand owners should be allowed to use this practice to exclude others. * **Market Dominance:** For large, well-established brands, trademark bidding can further entrench their market dominance, making it even harder for smaller or newer competitors to gain visibility. **Counterarguments for Trademark Bidding:** Companies that engage in trademark bidding often defend it by stating: * **Brand Protection:** They argue it's crucial to protect their brand reputation and ensure that consumers are directed to official sources, preventing them from landing on fraudulent sites or misleading advertisements. * **Customer Experience:** They want to provide the best and most accurate user experience by directing customers directly to their products. * **Preventing Competitors from "Free-Riding":** They argue that competitors shouldn't be able to benefit from the brand equity and marketing investment of others by appearing on trademarked keywords. * **Driving Sales:** It's a legitimate marketing strategy to capture high-intent traffic. In summary, trademark bidding is a common but controversial practice where brands bid on their own trademarked keywords. While it can be effective for brand protection and capturing direct sales, it's criticized for potentially stifling competition and limiting consumer choice.
The trademark bidding It consists of purchasing keywords through Google Ads or similar platforms that match another company's registered name. For example, a software company can bid on the keywords of its direct competitor. This way, their ad appears in the sponsored results when a user searches for the rival brand.
However, this practice operates in a legal and reputational gray area. In fact, Google generally allows the purchase of trademark keywords but prohibits the use of another's trademark in the ad text. Conversely, in some jurisdictions, courts have interpreted trademark holders' rights more restrictively.
The issue has been debated for years, including in Europe. In the past, the Court of Justice of the European Union had already expressed its opinion on the matter, establishing precise criteria. Despite this, practical application remains uneven across different national markets.
To deepen the European regulatory framework on the subject, it is useful to consult the EUIPO official resources, The European Union Intellectual Property Office.
The immediate impact on advertising platforms
The Indian ruling represents a significant precedent. Therefore, Google and other platforms could be called upon to review their policies globally, or at least in specific jurisdictions. This scenario has already been anticipated by some legal and advertising industry analysts.
In particular, the ruling strengthens the position of those who argue that platforms cannot limit themselves to being neutral intermediaries. Instead, they should assume more direct responsibility for verifying that purchased keywords do not infringe on the trademark rights of others. Therefore, Google Ads' current business model could face increasing regulatory pressure.
According to an analysis published by Harvard Business Review, Digital advertising platform regulation is set to intensify in the coming years. This trend is already visible in the European Digital Markets Act. Therefore, the Indian ruling fits within a context of increasing global scrutiny of big tech's power in the advertising market.
What should Italian SMEs with active campaigns do now
For Italian SMEs managing campaigns Google Ads, the first step is an audit of the keywords currently in use. In particular, it is necessary to verify if some of them correspond to competitors' registered trademarks. This check is not just a good practice: it is a concrete preventive measure.
Furthermore, it is advisable to review ad texts to ensure they do not contain explicit references to other brands. Although Google's policy already prohibits this, in practice some campaigns present critical issues that are not immediately apparent. Consequently, a thorough analysis by an SEM professional is strongly recommended.
Furthermore, companies that are victims of trademark bidding by competitors now have stronger arguments to challenge such practices. Therefore, trademark owners should consider systematically monitoring SERPs to identify any violations. We at SHM Studio We offer this type of analysis as part of our services. SEO e digital marketing.
Finally, it's useful to document every instance of misuse of your brand online. This documentation can prove invaluable in the event of a formal dispute with the platform or in legal proceedings.
A Milanese agency's view on SEM compliance risk
From an operational standpoint for those managing campaigns for Italian SMEs, the theme of compliance in SEM strategies is often underestimated. Many entrepreneurs consider the brand bidding An aggressive but legitimate tactic. However, the international regulatory framework is rapidly evolving in the opposite direction.
In SHM Studio, we have long adopted a consulting approach that includes the assessment of legal risks in strategies for Google Ads campaigns e LinkedIn campaign. In fact, a technically high-performing campaign that is exposed to legal challenges is not an effective campaign. Therefore, compliance is not a bureaucratic constraint; it is an integral part of the strategy.
Likewise, keyword management within a strategy SEO organica requires attention to third-party rights. For example, using others' trademarks in website content can generate problems similar to those in paid search. For this reason, an integrated approach between SEO copywriting A legal review is increasingly necessary.
Outlook for 2026-2027: Towards New Keyword Advertising Regulation
The Indian ruling is not an isolated incident. On the contrary, it fits into a global trend towards greater accountability of advertising platforms. According to Gartner, By 2027, regulations on digital advertising will significantly affect at least 65% of global markets.
In Europe, the Digital Markets Act and the Digital Services Act are already reshaping the rules of the game. Therefore, Italian SMEs would do well not to wait for the new regulations to become operational to adjust their strategies. Instead, a proactive approach allows compliance to be transformed into a competitive advantage.
Additionally, it's plausible that Google will revise its global trademark bidding policies in the coming months. Therefore, SEM strategies built entirely on competitor keywords could lose effectiveness due to both regulatory reasons and technical platform changes. For this reason, diversifying acquisition levers—including Organic SEO, content marketing e AI tools it is a concrete strategic priority.
In summary, those who invest today in building a strong digital presence that complies with emerging regulations will be at an advantage in the medium term. The team at web development e marketing from SHM Studio is available for a personalized assessment. For more information, you can contact us directly or explore the blog for further details on the topic.
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