Federal Court Rules Against eNaira Payment Solutions Ltd on Trademark Ownership
The Federal High Court in Abuja has issued a permanent injunction against eNaira Payment Solutions Ltd, prohibiting the company from claiming ownership of the trademark “eNaira.” This decision, delivered by Justice James Omotosho, also upheld a counterclaim from the Central Bank of Nigeria (CBN) and mandated the company to pay compensation of 10 million naira.
Mandatory Name Change for eNaira Payment Solutions Ltd
In his ruling, Justice Omotosho instructed eNaira Payment Solutions Ltd to adopt a new name that does not include the term “naira,” which refers to Nigeria’s official currency. The judge supported the defendants’ assertion that, despite the company’s incorporation in 2004, its name was misleading and suggested a potential affiliation with government authorities.
Implications of Misleading Branding
The judge pointed out that the name chosen by the plaintiff at its inception is deceptive and implies government backing, rendering it unregisterable. He affirmed that the Corporate Affairs Commission (CAC) had the authority to require a name change under section 852(2)(a) and (b) of the Companies and Allied Matters Act 2020 (CAMA).
Legal Actions and Counterclaims
The News Agency of Nigeria (NAN) reported that eNaira Payment Solutions Ltd has taken legal action against the CBN and the Trademark Registry, with the case filed as FHC/ABJ/CS/1113/2021. In an amended suit filed on April 5, 2024, the company sought multiple remedies, including damages amounting to N90.1 billion and a demand for the deregistration of the “eNaira” trademark from the defendants.
CBN’s Defense and Claims
On July 5, 2024, the CBN responded with an amended statement of defense and counterclaim, marked FHC/ABJ/CS/1591/2021. The central bank requested a permanent order that would restrain the company from falsely presenting itself as the registered owner of the eNaira trademark, along with 20 billion naira in general damages for the significant embarrassment caused by these claims.
Judgment on Trademark Validity
Delivering his comprehensive judgment, Justice Omotosho referenced a letter from the Trademark Registry, dated November 15, 2021, which revoked any acceptance letters previously issued to eNaira Payment Solutions Ltd concerning their applications. He emphasized that “eNaira” constitutes a national intellectual property of Nigeria and that the plaintiff lacked any superior claim to the trademark over the defendants.
Potential Economic Consequences
During his ruling, the judge cautioned that allowing eNaira Payment Solutions Ltd exclusive rights over the name “eNaira” would jeopardize Nigeria’s economic sovereignty. He highlighted that the name could mislead the public into thinking the company has government authorization to issue and manage a digital currency in line with Nigeria’s financial system.
Ultimately, Justice Omotosho dismissed eNaira Payment Solutions Ltd’s case, reaffirming that the company holds no rights to the eNaira trademark. He reiterated that the plaintiff must change its name to one that does not relate to “Naira,” reinforcing a permanent injunction against any claims of ownership over the eNaira trademark.
