Breaking: eNaira Trademark: Court Rules in Favour of CBN, Declines Interim Ban

eNaira Payment Solutions Limited filed an interim restraining application against the Central Bank of Nigeria’s (CBN) use of the “eNaira” trademark, but the Federal High Court in Abuja denied it on Friday.

The firm filed a notice move against the CBN and others, and Justice James Omotosho rendered the decision.

Prior to the hearing and resolution of its substantive suit in Nigeria, 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.
The Legal Conflict

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 while the Nigerian court decides the suit.

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In addition, the company asked for:

“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 Nigerian eNaira trademark and its subjudice status, while the substantive suit is being heard and decided.”

The plaintiff also requested a 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 further 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 was the legitimate owner of the eNaira brand and that the trademark registry had approved his application for registration.

The legal team at CBN 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 Remark
Justice Omotosho declared in his decision on the interim motion that he would weigh the “balance of convenience” in accordance with applicable laws.

“The balance of convenience refers to which party would suffer more harm if the application were granted or refused,” he clarified.
The judge pointed out that the CBN had previously written to the U.S. Trademark Office, claiming that the eNaira is a Nigerian national asset.
“The CBN’s action is preservatory,” he stated.

He added that granting the temporary 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 globally.
“The court decided today that if this application is approved, the CBN would be put in an irreversible position,” he continued.

The judge decided that the plaintiff’s application was unsuccessful.

He decided that the application was denied for lack of merit since the plaintiff had not made a strong argument.
The court then postponed the hearing of the substantive suit until June 26.

More Details
In an attempt to promote financial inclusion, Nigeria introduced the eNaira, its central bank digital currency, in October 2021.

Additionally, it was anticipated that the digital naira would support the CBN’s cashless program.