N1bn Lawsuit Against MTN Dismissed; Court Awards N3m Costs

A Federal High Court in Lagos has dismissed a N1bn lawsuit brought against MTN Nigeria Communications Plc by Walls and Gates Ltd and its Managing Director, Okechukwu Udeichi, over alleged copyright infringement, breach of confidentiality, and trademark violations linked to MTN’s 20th anniversary promotion.

Delivering judgment on Tuesday, Justice Ayokunle Faji held that the plaintiffs failed to demonstrate any legally protectable rights in their “20 for 20” proposal, describing the case as frivolous, speculative, and vexatious. The court dismissed the suit in full and awarded N3m in legal costs against the plaintiffs.

The plaintiffs had filed the suit under Case No. FHC/L/CS/1935/2021, claiming that MTN used their “20 for 20” proposal, submitted on 17 September 2019, without consent. They argued that MTN’s anniversary promotion, which involved giving away 20 sport utility vehicles to subscribers, derived from their proposal, constituting copyright, confidentiality, and trademark violations. They sought N1bn in damages or, alternatively, an order for MTN to remit 50% of the revenue generated from the promotion.

MTN denied the allegations, maintaining that the proposal was an unsolicited idea that imposed no contractual or confidential obligations. The company stated that its anniversary campaign was independently developed and that the plaintiffs’ submission was a general business concept not protected under Nigerian copyright law. MTN also contended that the plaintiffs lacked a registered trademark and could not show access to or copying of any protected work.

In his ruling, Justice Faji noted that the plaintiffs admitted during oral submissions that they could not substantiate the trademark infringement claim, leaving only allegations of copyright and breach of confidentiality for consideration.

Regarding confidentiality, the court found that no confidential relationship existed. The judge noted that the plaintiffs had submitted the proposal to the Nigerian Copyright Commission and relied on it for a trademark application before sharing it with MTN, placing it in the public domain. Additionally, the plaintiffs circulated the document to other organizations, nullifying any claim of confidentiality. The court held that MTN had no obligation to act on an unsolicited proposal without a contractual or fiduciary relationship or a non-disclosure agreement.

On copyright, the court emphasized that Nigerian law protects original expressions, not ideas or business concepts. Justice Faji ruled that the plaintiffs’ proposal, described as a “20 for 20 Millennium Promotion,” was merely an idea for rewarding customers and lacked the originality required for copyright protection. The use of the phrase “MTN 20th Anniversary” by MTN was deemed a natural description of an event, not a work derived from the plaintiffs. The court also cited evidence that similar anniversary reward concepts had been used by MTN affiliates internationally before the plaintiffs’ proposal.

Justice Faji described the suit as an attempt to coerce a commercial relationship with MTN and criticised the plaintiffs for leveraging MTN’s trademark without authorization to support a billion-naira claim. He highlighted that the case wasted judicial resources.

While affirming the right to access the courts, the judge stressed that this right applies only to claims with prima facie merit. Consequently, the court awarded N3m in costs to MTN and ordered the plaintiffs to pay the amount.