An interim restraining application against the Central Bank of Nigeria’s (CBN) use of the “eNaira” trademark was denied by the Federal High Court in Abuja on Friday. The motion was submitted by eNaira Payment Solutions Limited.
The firm filed a motion on notice against the CBN and others, and Justice James Omotosho delivered the decision.
Before the U.S. Patent and Trademark Office heard and decided its substantive suit in Nigeria, the company requested an order of interim injunction 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.
Legal Conflict
In order to get the CBN to immediately stop communicating or interacting with the USPTO or any other foreign authority about the eNaira trademark while the Nigerian court decides the suit, Jonathan Kenneth Adoke, the CEO of E-Naira Payment Solutions Limited, petitioned the court for an order.
Additionally, the company asked for:
“Pending the hearing and resolution of the substantive suit, an order of interim injunction directing the Central Bank of Nigeria to notify the United States Patent and Trademark Office of the ongoing litigation concerning the eNaira trademark in Nigeria and its sub judice status.”
The plaintiff also requested an order of temporary injunction, which would require the USPTO, the Trademark Trial and Appeal Board, or any other appropriate U.S. authority to stop any further actions or decisions pertaining to the eNaira mark until the Nigerian lawsuit was resolved.
The firm also 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 plaintiff asserted that he is the legitimate owner of the eNaira brand and that the trademark registry had approved his application for registration.
In response, CBN’s legal team contended that since the Federal Republic of Nigeria introduced the eNaira as a digital currency, the trademark cannot belong to a private company because it is a national asset.
Judge’s Remarks
In his decision on the interim motion, Justice Omotosho said he would weigh the “balance of convenience” in accordance with applicable laws.
He clarified that if the application were approved or denied, the balance of convenience would determine which party would be harmed more.
The CBN had previously written to the U.S. Trademark Office, claiming that the eNaira is a Nigerian national asset, the judge pointed out.
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“The CBN’s action is preservatory,” he declared.
He added that granting the interim application would have a major negative impact on Nigeria’s economy and might seriously harm the nation’s interests.
The judge came to the conclusion that the plaintiff’s application would damage Nigeria’s economy and reputation abroad.
He continued, “Today, the court rules that if this application is granted, the CBN would be placed in an irreversible position.”
The judge declared, “The plaintiff’s application fails.”
He determined that the application was denied for lack of merit since the plaintiff had not made a strong argument.
In order to hear the substantive suit, the court then postponed the case until June 26.
Additional Perspectives
In an effort to promote financial inclusion, Nigeria introduced the eNaira, its central bank digital currency, in October 2021.
It was also anticipated that the digital naira would support the CBN’s cashless program.
