Court dismisses N1bn case against MTN Nigeria, awards N3m in favour

The Federal High Court sitting in Lagos has dismissed a N1 billion lawsuit filed against MTN Nigeria by Walls and Gates Ltd and its Managing Director over alleged copyright infringement, breach of confidentiality, and trademark violations.

The plaintiffs alleged that MTN Nigeria unlawfully used their “20 for 20” proposal for its 20th anniversary promotional campaign, an event held in 2021.

In a court sitting on Tuesday, according to a PunchNews report, Justice Ayokunle Faji held that the plaintiffs failed to provide proof of any legal right in the proposal. While describing the actions as ‘speculative and frivolous,’ the Justice dismissed the suit and awarded N3 million in costs against the plaintiffs.

Background of the story

In a Suit No. FHC/L/CS/1935/2021, filed by Walls and Gates Ltd and its Managing Director, Okechukwu Udeichi, claimed that MTN Nigeria unlawfully used their “20 for 20” proposal, a document they submitted to the telecoms company on 17 September 2019. 

The suit claimed that MTN Nigeria’s promotional strategy for the event emanated from their proposal, thereby instituting an infringement of their copyright, confidential information, and trademark. It added that the idea of giving out 20 sport utility vehicles to subscribers emanated from their proposal. 

Based on the claims, the plaintiffs sought N1 billion in damages or an order directing MTN to remit 50% of the funds generated from the promotion to them.

In response, MTN Nigeria denied the allegations, stating that the proposal was an unsolicited business idea that placed neither a contractual nor confidential obligation on the company. The telecoms operator stated that the plaintiffs lacked a valid registered trademark and failed to provide proof that it copied from its proposal.

In addition, MTN Nigeria noted that the 20th anniversary promotion was independently developed, and the plaintiff’s proposal is merely a public business concept not protected under the Nigerian copyright law.

Also Read: FCCPC withdraws breach of compliance case against MTN Nigeria executives.

No confidential relationship existed – Court

During Tuesday’s court session, Justice Faji said that the plaintiffs already claimed during oral submissions that they failed to prove their claim of trademark violations. This left the court to deal with issues of alleged breach of confidentiality and copyright infringement.

The court held that no confidential relationship existed between the parties. In explanation, Justice Faji noted that the plaintiffs had already submitted it to the Nigerian Copyright Commission for trademark application before sending it to MTN Nigeria, thereby exposing the document in the public domain.

In addition to that, Justice Faji noted that after transmitting the proposal to MTN, the plaintiffs admitted circulating it to other organisations, further relegating any claims of confidentiality. 

As to the copyright infringement allegation, the court held that registration with the Nigerian Copyright Commission does not confer copyright. It stressed that Nigerian law protects expressions, not ideas or business concepts.

The Judge ruled that the proposal is merely an idea of rewarding customers during an anniversary celebration, thereby lacking the originality and intellectual effort required for copyright protection. He also held that MTN’s use of the phrase “MTN 20th Anniversary” was a natural description of an anniversary event and was not an idea of the plaintiffs or from their proposal. 

Justice Faji described the suit as a “gold-digging exercise” aimed at forcing a commercial relationship on MTN Nigeria. 

In his verdict, he dismissed the suit and awarded N3 million in costs in favour of the telecoms company.

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