Court Slams N840Mn Fine On MTN For Trademark Infringement

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A Federal High Court in Lagos has fined MTN Nigeria Communications Limited N840 million for infringing on the registered trademark “WEBPLUS,” owned by Citilink Accesscorp Limited.

The judge of the High Court, Justice Akintayo Aluko, who slammed the fine on the Mobile Network Operator (MNO) while delivering judgment on a suit marked HC/L/CS/1124/2014 filed by Citilink, held that telecom operator’s use of “MTN WEBPLUS” or “MTN WEB+” unlawfully mimicked the plaintiff’s trademark.

The judge also awarded N70 million yearly damages, covering Citilink’s loss of business and brand dilution from 2014 to 2025 and ordered MTN to pay the applicant 15% interest per annum on the judgment sum until it is fully paid.

Citilink Accesscorp Limited, had in a suit filed on July 17, 2024, accused MTN Nigeria of infringing on its trademark “WEBPLUS,” which was legally registered in 2001 under Class 9 and renewed in 2014.

The applicant argued that MTN Nigeria’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.

It  had urged the court for a declaration that Citilink Accesscorp Limited is the sole legal owner of the “WEBPLUS” trademark.

The 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.

It sought from the court “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”, the applicant added

But the telco challenged the court’s jurisdiction, arguing that a pending case at the Trademark Tribunal made the lawsuit invalid.

In addition, it also argued that its application for “MTN WEBPLUS” was made in 2012, when Citilink’s trademark registration had lapsed (between 2008 and 2014).

While arguing that the applicant failed to prove trademark infringement, the leading MNO insisted that its use of “WEBPLUS” was an honest concurrent use, meaning that it has no intention to deceive.

The telecom operator further argued that the applicant lacked sufficient evidence to justify its financial claims.

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

However, 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.

The judge also granted a perpetual injunction against MTN, barring the telecom operator from further use of the disputed trademark.

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