The Federal High Court, Abuja Division, on Friday, made an order of perpetual injunction restraining the eNaira Payment Solutions Ltd from parading itself as the registered proprietor of the trademark, ‘eNaira’.

Justice James Omotosho, in a judgement, also granted the Central Bank of Nigeria’s counter claims and awarded N10 million against the company.

The judge ordered the eNaira Payment Solutions Ltd to immediately change its name to another distinct name without the use of naira.

The judge agreed with the defendants’ arguments that though the company had been incorporated since 2004, it had a misleading name.

He held that “the name chosen by the plaintiff on its incorporation is in the circumstances unregistrable due to the misleading nature of the name which suggests government’s patronage”.

The judge held that the Corporate Affairs Commission was, therefore, right to issue the directive to the company to change its name in line with Section 852(2)(a) and (b) of the Companies and Allied Matters Act (CAMA), 2020.

The firm had sued CBN, the registrar of Trademarks and the registrar general of CAC as first to third defendants, respectively. In the amended writ of summons dated and filed on April 5, 2024, the plaintiff sought 17 prayers including a N90.10 billion in damages.

It asked the court to restrained the defendants from withdrawing the trademark, eNaira, from it and stopping the CBN from claiming or conferring ownership of the name on itself.

It described the acts of the defendants as unconstitutional takeover of its personal property which it had maintained for over 20 years, among other reliefs. But CBN filed a further amended statement of defence and a counter claim dated and filed on July 5, 2024, and marked FHC/ABJ/CS/1591/2021.

The apex bank sought five reliefs, including, a perpetual order restraining the company from parading itself as the registered proprietor of the trademark eNaira. The CBN sought an order directing the company to pay it a N20 billion as general damages for the colossal and global embarrassment it caused to it by laying claim to the proprietorship of a trademark that does not belong to it.

It also sought a fine of N200 million as a cost of the suit. Besides, the CAC, in its statement of defence and counter claim dated April 30, 2024, but filed May 2, 2024, sought an order directing the company to change its name to another distinct name without the use of the word, naira.

In establishing its case, the plaintiff called one witness, the CBN and CAC also called a witness each while parties tendered documentary evidence as exhibits.

Delivering a consolidated judgment in the suits, the judge observed that the Trademark Registry, through a letter dated November 15, 2021, had written to eNaira Ltd cancelling and withdrawing the acceptance letters issued to the company in respect of applications for eNaira in class 36 and 42.

The judge observed that the registry had directed for the withdrawal on the grounds that “eNaira is a national intellectual property and constitutes a symbol and national asset of Nigeria”. According to the judge, as it stands, the plaintiff has no greater legal right to the trademark than the 1st defendant.

“A party that has no legal right cannot be entitled to an injunction. The purport of this is that prima facie, the plaintiff has no valid trademark to the exclusive use of the eNaira trademark,” he said.

Besides, the judge held that by Section 852(2) of CAMA, CAC is at liberty not to register a company with names which suggest that the company enjoys government patronage.

(NAN)