On Friday, eNaira Payment Solutions Limited filed an interim restraining action against the Central Bank of Nigeria’s (CBN) use of the “eNaira” trademark, but the Federal High Court in Abuja denied it.
On a notice motion brought by the firm against the CBN and others, Justice James Omotosho rendered the decision.
While its substantive suit in Nigeria is being heard and decided, the company requested an order of interim injunction from the U.S. Patent and Trademark Office prohibiting the Central Bank of Nigeria (the first defendant) from further asserting any rights to the eNaira mark in the United States or any other foreign jurisdiction, including in relation to goods.
A Legal Conflict
Until the Nigerian court’s decision on the suit, Jonathan Kenneth Adoke, the CEO of E-Naira Payment Solutions Limited, petitioned the court for an order compelling the CBN to immediately stop communicating or interacting with the USPTO or any other foreign authority about the eNaira trademark.
The company additionally asked for:
“An interim injunction order directing the Central Bank of Nigeria to notify the U.S. Patent and Trademark Office of the ongoing litigation concerning the Nigerian eNaira trademark and its subjudice status, while the substantive suit is being heard and decided.”
Additionally, the plaintiff requested an order of temporary injunction, instructing the Trademark Trial and Appeal Board, the USPTO, or any other appropriate U.S. body to stop any further action or decision-making regarding the eNaira mark until the Nigerian lawsuit is resolved.
Additionally, the company requested that the court order the CBN to stop any further attempts to stop its registration of the eNaira name or trademark in any country and to abstain from representing the word “eNaira” as a Nigerian sovereign asset or legal tender in any jurisdiction.
The complainant asserted that the eNaira trademark is legally his, and the trademark register approved his application for registration.
CBN’s legal team responded by stating that since the Federal Republic of Nigeria introduced the eNaira as a digital currency, it is a national asset and cannot be owned by a private company.
The Judge’s Comments
Justice Omotosho said in his decision on the interim motion that he will weigh the “balance of convenience” in accordance with applicable laws.
He clarified that the balance of convenience relates to whether party would be more negatively impacted by the approval or rejection of the application.
According to the judge, the CBN had previously written to the U.S. Trademark Office, claiming that the eNaira is a Nigerian national asset.
He declared, “The CBN’s action is preservatory.”
He added that if the interim application were approved, Nigeria’s economy would be severely hampered, thereby harming the nation’s interests.
The plaintiff’s application would hurt Nigeria’s economy and damage its reputation abroad, the judge found.
“The court has ruled today that granting this application would put the CBN in an irreversible position,” he continued.
The judge declared that the plaintiff’s application was unsuccessful.
According to his ruling, the application was denied for lack of merit since the plaintiff had not made a strong argument.
After then, the court postponed the hearing of the substantive suit until June 26.
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Further Perspectives
Nigeria’s initiatives to promote financial inclusion included the October 2021 debut of the eNaira, the country’s central bank digital currency.
The CBN’s cashless policy was also anticipated to be promoted by the digital naira.
