Companies

Firm barred from using JamboPay trademark

JamboPay

JamboPay CEO Danson Muchemi. FILE PHOTO | NMG

The Court of Appeal has upheld a decision barring a rival firm from using JamboPay after its founder Danson Muchemi complained of infringement of his trademark.

The court ruled that Mr Arif Manji, the director of Sam Consultancies Limited, could not claim ignorance of using another company’s trade name when he registered JamboPay Express Limited.

JamboPay, which used to provide software for e-payments to the Nairobi County and the National Hospital Insurance Fund (NHIF) among others, had accused a former partner turned rival of registering the name to benefit from his trademark.

“In this regard, an order of deregistration was the only solution that could put a stop to the continued infringement of the respondent’s trademark,” Justices Wanjiru Karanja, Hannah Okwengu and Sankale ole Kantai said.

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Mr Muchemi said he registered the name “JamboPay” in 2009, as an online payment gateway that allows users to make and receive payments through mobile phones over the internet.

Mr Manji later entered into negotiations with Muchemi's company - Webtribe ltd- with a view to a share purchase agreement and formation of ‘JamboPay Express Limited’ as a subsidiary to offer online payment services to JamboPay users.

Although the negotiations fell through, Mr Manji went ahead and registered JamboPay Express triggering the court case.

Justice Farah Amin had in 2014 ordered the Registrar of Companies to deregister JamboPay Express for infringement of the trademark.

Mr Muchemi had told the High Court that during the negotiations, Mr Amin had access and exposure to its information and systems and later incorporated the rival company in October 2012.

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Mr Manji appealed arguing that Mr Muchemi cannot claim infringement of his trademark because there was no evidence that he was operating an identical system.

The Appellate court, however, said Mr Manji registered his trademark a few years after the negotiations fell through and that he had been using the word ‘JamboPay’ extensively and publicly.

“Given the similarity in the name of the appellant and the respondent’s trademark, the learned Judge was under a duty to protect the respondent and also balance the rights of the two parties,” the Judges added.

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