Court orders MTN to pay N840m for trademark infringement

Court orders MTN to pay N840m for trademark infringement
Federal High Court Orders MTN to Pay 840 Million for Trademark Infringement

Justice Daniel Osiagor of the Federal High Court in Lagos has directed MTN Nigeria Communications Ltd. and the Registrar of Trademark, Patent & Designs to pay N840 million in damages following a ruling on trademark infringement involving Citilink Accesscorp Limited’s registered trademark “WEBPLUS.”

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The court determined that MTN had unlawfully utilized the “WEBPLUS” trademark, which Citilink lawfully registered under Class 9 of the Trademark Registry. In a significant decision, Justice Osiagor granted a perpetual injunction, prohibiting MTN and the Registrar from registering or issuing any certificates for the trademarks “WEBPLUS,” “WEB+,” “MTN WEBPLUS,” or any similar variants across Classes 9, 16, and 38.

In the case identified as suit FHC/L/CS/1124/2014, Citilink Accesscorp sought affirmation of its exclusive ownership of the WEBPLUS trademark under Registration RTM No. 65162. The company argued that MTN’s use of the terms “MTN WEBPLUS” or “WEB+” amounted to a violation of trademark rights and requested an injunction to prevent any further misuse of similar marks.

MTN’s legal counsel, led by Fidelis Adewole, argued for the application of the defense of honest concurrent use, asserting that even if there were similarities between the trademarks, MTN had employed the mark without any intent to deceive or in bad faith. They urged the court to dismiss Citilink’s claims.

However, Justice Osiagor dismissed MTN’s defense and sided with Citilink, awarding general damages amounting to N840 million, calculated at N70 million per year from 2014 to 2025 due to business losses and brand dilution. Furthermore, the judge specified that an additional 15 percent annual interest would accrue until the judgment was fully settled.

In addition to the financial damages, Justice Osiagor issued a lasting injunction that prohibits MTN from using the “WEBPLUS” trademark. The court rejected Citilink’s request for special damages, including legal costs, due to inadequate supporting evidence.


Copyright 2024 REPORT AFRIQUE (RA). Permission to use portions of this article is granted provided appropriate credits are given to www.reportafrique.com and other relevant sources. This Article is Fact-Checked. See Policy.
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