Judge Encourages Settlement in N98.5 Billion Patent Infringement Case
Justice Deinde Dipeor of the Federal High Court in Lagos has urged the parties involved in a N98.5 billion patent infringement lawsuit, including Enterprise Logistics Speciale Limited, the Central Bank of Nigeria (CBN), Nigeria Interbank Payment System Plc (NIBSS), and Avanage Nigeria Limited, to pursue an amicable resolution prior to the trial’s commencement.
The judge opted against opening the trial, citing the absence of legal representation from three defendants: Avanage Nigeria Limited, CBN, and the Patents and Designs Registration Authority.
He mandated that notice of hearing be served on these absent parties and encouraged all stakeholders to engage in genuine discussions aimed at reaching a settlement.
The plaintiffs, Enterprise Logistics Speciale Limited and its managing director, Mr. Samuel Colajo, are claiming damages for an alleged infringement of their patented cash management technology, breach of a non-disclosure agreement, and the CBN’s reluctance to integrate a cash management solution into Nigeria’s national payments infrastructure, totaling around NOK 98.5 billion.
In the courtroom, Mr. Tayo Oetibo (SAN) represented the plaintiffs, while NIBSS had Mr. Olaoluwa Aledaniel present as their legal representative. Notably, CBN was unrepresented.
Trial Adjourned Amid Absences
Oetibo informed the court that the matter was ripe for trial, and that the plaintiff’s witnesses were prepared to testify. However, Justice Dipeor deemed it inappropriate to proceed without the legal representatives of Avanage Nigeria Limited, CBN, and the Patents and Designs Registration Authority.
The judge has ordered that hearing notices be served on the absent defendants, ensuring all parties are informed before the next scheduled court date.
Justice Dipeor also reminded the attorneys of the Federal High Court Act’s provisions encouraging an amicable resolution to disputes, urging them to make earnest efforts to settle their differences without proceeding to trial. In response, NIBSS’ legal team argued that payment system operators function strictly under the regulatory oversight of CBN and cannot make unilateral decisions.
Disputes Over Patent Infringement and Intellectual Property
NIBSS’ representatives maintained their opposition to any arrangements that could foster a monopoly, claiming that this contention is central to the ongoing dispute. Conversely, Oetibo contended that the plaintiffs had invested considerable resources in developing their patented technology and thus deserve exclusive protection and economic benefits derived from their intellectual property.
He asserted that implementing this innovation could significantly enhance Nigeria’s cash management system, ultimately benefiting the national economy. Oetibo further criticized the ongoing conflicts, attributing them to “selfish interests” of individuals in authoritative positions, which he said deprives the economy of the advantages that such inventions could bring.
Despite these disagreements, Oetibo confirmed in court that the plaintiffs remain amenable to settlement negotiations. Following the proceedings, Justice Dipeor directed the parties to engage in meaningful discussions with the aim of resolving the conflict amicably. The case has been adjourned until October 15 and 16, 2026, for trial should settlement negotiations fail.
Details of the Patented Technology
The amended statement of claim indicates that the plaintiffs developed innovative cash management techniques since 2011 with the goal of modernizing Nigeria’s cash handling system and minimizing the physical movement of cash in the banking sector. Their technology portfolio includes mobile smart deposits, mobile cash sorting and processing devices, PillarSalt cash supply chain solutions, cash recycling methods, retail cash management solutions, and comprehensive cash and terminal management systems, all of which are secured under three patents.
The plaintiffs allege that after revealing details of their invention to the defendants, the CBN subsequently introduced guidelines for Bank Neutral Cash Hubs (BNCH) that purportedly replicate their patented processes and technologies without consent or appropriate compensation. The plaintiffs also assert that the apex bank has commercialized their inventions while neglecting to safeguard their intellectual property rights.
Demands and Counterarguments
The plaintiffs are seeking several forms of relief, including a declaration affirming their exclusive ownership of the patented technology, an injunction preventing the defendants from utilizing their invention without consent, and a directive compelling NIBSS to activate the PillarSalt cash management solution on Nigeria’s central exchange within 30 days. They are also pursuing the invalidation of the CBN’s BNCH guidelines, which they allege infringe on their patented inventions.
The financial claims made by the plaintiffs include N500 million in general damages for patent infringements, N200 million against NIBSS for breaching a 2015 non-disclosure agreement, and N97.8 billion for losses incurred due to NIBSS’s refusal to integrate and activate the PillarSalt solution since December 2016.
In response, NIBSS has denied all allegations in an amended statement of defense, insisting that it has not infringed on any of the plaintiffs’ patents or violated any non-disclosure agreements. NIBSS contends that while it has never refused to integrate the plaintiffs’ solutions, it opposes granting exclusive access that would inhibit other operators with similar technologies from utilizing the country’s payment infrastructure.
According to NIBSS, such exclusivity would lead to unlawful restrictions on trade and create a monopoly, conflicting with existing regulatory guidelines. The organization added that any consolidation decisions require oversight and internal approvals and cannot be made unilaterally, emphasizing the need for clarity and fairness in this complex legal matter.
