ÂÌñÏׯÞ

ÂÌñÏׯÞ

Menu Close

Infraction: Court slams N840m fine on MTN Nigeria for trademark infringement

*Justice Akintayo Aluko of the Federal High Court, in Lagos, slams a N840 million fine on MTN Nigeria Communications Plc, for the telecoms company’s infringing on the registered trademark ‘WEBPLUS’, registered and owned by Citilink Accesscorp Limited

Isola Moses | ÂÌñÏׯÞ

For infringing on the registered trademark ‘WEBPLUS’ owned by Citilink Accesscorp Limited, Justice Akintayo Aluko of the Federal High Court, in Lagos, Nigeria, has slammed a N840 million fine on MTN Nigeria Communications Plc.

It was gathered Justice Aluko, who imposed the fine while delivering judgment on a suit marked HC/L/CS/1124/2014 filed by Citilink, ruled that MTN’s use of ‘MTN WEBPLUS’ or ‘MTN WEB+’ unlawfully mimicked the plaintiff’s trademark.

The court also awarded N70 million yearly damages, covering Citilink’s loss of business, and brand dilution from 2014 to 2025, totalling N840 million.

Justice Aluko as well ordered MTN Nigeria to pay the applicant 15 percent interest per annum on the judgment sum until it is fully paid.

Citilink Accesscorp Limited, in a suit filed July 17, 2024, had accused MTN Nigeria Communications Plc of infringing on its trademark ‘WEBPLUS’, which the company legally registered 2001 under Class 9 and renewed it 2014.

Citilink had argued that MTN’s use of ‘MTN WEBPLUS’ and similar variants constituted unauthorised usage, misleading the public and damaging its brand.

The applicant joined the Registrar of Trademarks, Patent Designs, as a defendant, representing all entities involved in the production, marketing, and sale of the infringing services.

The plaintiff equally prayed the court for a declaration that Citilink Accesscorp Limited is the sole legal owner of the “WEBPLUS” trademark.

Citilink further asked the court for a perpetual injunction restraining MTN from further use of ‘WEBPLUS’ in any form and an order preventing the Registrar of Trademarks from issuing any trademark rights to MTN under ‘WEBPLUS’ or any variation of it.

The plaintiff further sought the following reliefs:

“An order for seizure by the Bailiff of this Court for the destruction of all the servers of the first defendant which hosted, still hosts, used and still being used for transmitting information, messages, advertisement, marketing details of the first defendant’s MTN WEBPLUS to the general public.

“A demand for N1.5 billion in general damages for infringement and compensation for legal fees and expenses incurred.”

MTN Nigeria’s defence

In its defence, MTN Nigeria, however, challenged the court’s jurisdiction.

The Mobile Network Operator argued that a pending case at the Trademark Tribunal made the lawsuit invalid.

The telecoms company also claimed that its application for ‘MTN WEBPLUS’ was made 2012, when Citilink’s trademark registration had lapsed (between 2008 and 2014).

Stating that the applicant had failed to prove the alleged trademark infringement, the telecommunications giant maintained that its use of ‘WEBPLUS’ was a honest concurrent use, meaning it had no intention to deceive telecoms consumers and the general public.

The Telco further contended that the applicant lacked sufficient evidence to justify its financial claims.

In his ruling, Justice Aluko nonetheless, rejected MTN’s defence and upheld the applicant’s infringement claims.

The court denied some of the applicant’s additional demands, including the request for the seizure and destruction of MTN’s servers and a claim for N10 million in special damages due to insufficient proof.

Justice Aluko also granted a perpetual injunction against MTN, barring the telecoms operator from further use of the disputed trademark henceforth.

Kindly Share This Story

 

 

 

 

Kindly share this story