The Federal High Court has dismissed an interim injunction request by eNaira Payment Solutions Limited seeking to restrain the Central Bank of Nigeria (CBN) from using the ‘eNaira’ trademark.
The company requested an interim injunction to prevent the Central Bank of Nigeria from asserting any rights to the “eNaira” trademark in the United States or other foreign jurisdictions, including before the U.S. Patent and Trademark Office – until its substantive suit in Nigeria is heard and determined.
The firm also sought an interim order compelling the Central Bank of Nigeria to notify the United States Patent and Trademark Office that the “eNaira” trademark is currently the subject of ongoing litigation in Nigeria, and that no final decision has been made.
The firm further asked the court to order the CBN to stop presenting “eNaira” as a sovereign asset or legal tender of Nigeria in any country, and to cease any efforts aimed at blocking the company’s attempts to register the eNaira name or trademark internationally.
The company claims it holds legal rights to the eNaira trademark and that its application for registration was accepted by the trademark registry.
However, the CBN contended that the name cannot be privately owned, indicating that “eNaira” is a national asset tied to Nigeria’s official digital currency launched by the Federal Government.
In his ruling, the judge stated that granting the interim application could significantly harm Nigeria’s economy and damage the country’s international reputation.
“Today, the court rules that the CBN would be placed in an irreversible position if this application is granted,” he added.
“The plaintiff’s application fails,” the judge ruled.
eNaira Payment Solutions Limited, a local firm with a limited online presence, filed a lawsuit in September 2021 in an attempt to prevent the Central Bank from launching the Central Bank Digital Currency (CBDC).
The company argued that the CBDC could be associated with their brand, potentially impacting their operations.
“Our client is the holder of the Trademark “ENaira” registered in Class 36 and Class 42. It has come to our client’s notice that the Central Bank of Nigeria (CBN) has announced the planning launching of a financial under what it termed its Central Bank Digital Currency to be known as “eNaira”.
This action amounts to a threat to willfully infringe on our client’s Trademark. It will also amount to a violation of its corporate name i.e. ENaira Payment Solutions Ltd. The ramifications of this illegal act of the CBN are extensive.
Importantly, the potential this has to deceive the general public into believing that this product emanated from our client’s company is real and the consequences for our client are grave. The potential to expose our client to all manner of damage, loss of business and loss of goodwill is also very real.”
– Lawyers for the eNaira Payment Solutions Limited (2021)
The digital currency has struggled to find traction since its launch in October 2021 despite different activities to promote and inculcate its usage.
[WATCH] The Nigerian eNaira Central Bank Digital Currency – The First CBDC in Africa – Goes Live: https://t.co/aD1FKpptps #eNaira @cenbank
— BitKE (@BitcoinKE) October 26, 2021
In 2023, the International Monetary Fund (IMF), deemed the progress of the eNaira adoption as relatively low, recommending the bank to consider utilizing government aid programs, merchant payment systems, and more favorable foreign exchange (FX) rates for remittances to incentivize broader adoption of the eNaira
IMF Advises Nigeria to Consider Mobile Money Integration to Boost Slow eNaira Adoption
The @IMFNews has expressed disappointment over the relatively low adoption of Nigeria’s CBDC, the #eNaira, more than a year since launch.https://t.co/pfEh3yKmMh pic.twitter.com/UIhRYNqQHt
— BitKE (@BitcoinKE) June 29, 2023
Follow us on X for the latest posts and updates
Join and interact with our Telegram community
_________________________________________
_________________________________________