- The Indian ruling that reopened an old file
- How trademark keyword management works on Google today
- Why founders support the ruling
- Immediate impact on Italian SMEs' SEM strategies
- The regulatory framework is still wide open
- What to do now: a three-tier approach
- Outlook: what could change in the next 12-18 months
An Indian court has issued a ruling that re-evaluates how Google handles trademarked keywords in advertising campaigns. The decision has received widespread support from founders and entrepreneurs. Furthermore, several legal experts have pointed out that it could force platforms to review their policies regarding registered trademarks.
For Italian SMEs investing in Google Ads, this isn't just a theoretical issue. In fact, many companies already find themselves competing on keywords that include a competitor's name or a registered brand. Therefore, understanding the legal and strategic boundaries of this practice is becoming urgent. In particular, anyone managing SEM campaigns without proper legal oversight risks exposure to disputes.
We at SHM Studio we keep an eye on how international rules are changing to turn them into practical tips for our clients. In this article, we break down the ruling and what it means for strategies Google Ads and the concrete steps that SMEs should consider today.
The Indian ruling that reopened an old file
At the end of May 2026, an Indian court issued a ruling that immediately sparked debate. The decision concerns the possibility for advertisers to use keywords corresponding to other people's registered trademarks in Google Ads campaigns. According to reports from TechCrunch , several founders seized the opportunity to renew criticism of Google's advertising model. In addition, legal experts noted that the ruling could prompt platforms to rethink their internal rules.
The issue is not new. However, this ruling comes at a time when the debate on digital competition is particularly heated. In Europe, the Digital Markets Act is already in force. Therefore, any signal coming from non-European jurisdictions carries greater specific weight than in the past.
How trademark keyword management works on Google today
Google generally allows the use of keywords that match registered trademarks. However, it imposes certain restrictions on the use of those trademarks in ad copy. In practice, a company can bid on keywords like a competitor's name. Conversely, it cannot — with some exceptions — include that name in the ad's headline or description.
This distinction is subtle but important. In fact, many SMEs are not deeply familiar with it. As a result, they expose themselves to two opposite risks: either they completely avoid competitive keywords out of an abundance of caution, or they use them improperly. Both approaches lead to inefficiencies in google ads campaigns .
Google's current policy is outlined in its official help center on advertising policies . It is worth checking periodically, as it gets updated.
Why founders support the ruling
The founders' support for the Indian pronunciation is not accidental. Many entrepreneurs, particularly those in startups and scale-ups, have complained for years that the trademark keyword system favors larger brands. The latter can afford to bid aggressively on their own name. By doing so, they increase the cost per click even for those who do not use their brand in the ad text.
On top of that, registered trademark owners can ask Google to take down competing ads that use their brand. This mechanism creates imbalances. Specifically, it hurts SMEs trying to get noticed in categories dominated by established players. Therefore, the Indian ruling is seen as a sign of a possible level-playing field reset.
According to analysis by Gartner on paid search , competing on brand keywords makes up a bigger and bigger slice of digital ad spend. So, this is about direct money stuff, not just legal rules.
Immediate impact on Italian SMEs' SEM strategies
For Italian SMEs running SEM campaigns, the Indian ruling has no direct legal effects. However, it represents a trend worth keeping an eye on. Specifically, it could foreshadow regulatory developments in other jurisdictions, including the European Union.
There are three operational areas to consider immediately. First, review the active keyword lists: check if keywords corresponding to third-party brands are present and assess their legitimacy. Next, check the ads: ensure the text does not contain references to registered trademarks without authorization. Finally, assess the legal risk: involve an intellectual property consultant if necessary.
We at SHM Studio we support clients in structuring campaigns Digital marketing that work well while still following current rules. Being compliant doesn't hold back performance: it keeps it going strong for the long haul.
The regulatory framework is still wide open
The Indian ruling is part of a rapidly evolving global regulatory framework. In Europe, the Digital Markets Act imposes transparency and non-discrimination obligations on gatekeepers, including Google. Similarly, various national antitrust authorities are scrutinizing platform advertising practices.
An analysis by Harvard Business Review on the new rules of digital advertising highlights how companies need to gear up for tighter regulation scenarios. Therefore, adopting a stricter management of trademark keywords today is not just legal caution. It is also a smart strategic move to avoid future operational disruptions.
For SMEs, this means establishing clear internal processes. For example, defining who approves keyword lists, who checks ad compliance, and how often. These processes naturally integrate with a SEO Strategy structured, which reduces reliance on paid search for organic traffic.
What to do now: a three-tier approach
The situation suggests a structured approach based on three levels of intervention.
- Operational level: Perform an audit of active Google Ads campaigns. Identify all keywords containing brand names or registered trademarks. Assess the risk on a case-by-case basis, distinguishing between generic keywords and direct brand keywords.
- Strategic level: Reduce reliance on competitive keywords through organic content development. A solid strategy of SEO copywriting allows you to target relevant queries without exposing yourself to paid disputes. Furthermore, investing in LinkedIn campaigns for B2B allows you to reach decision makers in less competitive contexts.
- Governance level: Set up an internal protocol to manage trademark keywords. This includes documenting decisions, checking Google's policies regularly, and looping in the legal team for tricky cases.
These three levels are not mutually exclusive. On the contrary, they reinforce each other. A company that only works on the operational level without a strategic vision risks repeating the same mistakes over and over. Therefore, an integrated approach is the most effective one.
Outlook: what could change in the next 12-18 months
It is reasonable to expect that the Indian ruling will spark international attention. Some platforms might get ahead of potential regulatory requirements by updating their policies. Google, in particular, has shown in the past that it adapts trademark keyword rules in response to legal pressures in specific jurisdictions.
For Italian SMEs, the main risk isn't an immediate penalty. It's more about SEM strategies going out of style because they were built on assumptions that might change. So, anyone investing today in artificial intelligence applied to marketing and automated monitoring tools will be able to adapt more quickly.
In summary, the Indian ruling is a useful reminder: paid search rules aren't set in stone. SMEs that treat compliance as a structural element of their digital strategy — rather than an occasional task — are best positioned to navigate these changes. To delve deeper into the specific implications for your industry, you can contact the SHM Studio team or check out related articles on Blog .
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