Another MTN pain as little-known firm wins N880m trademark case

MTN Nigeria has suffered another setback after a Federal High Court in Lagos ordered the telecom giant to pay N840 million in damages for infringing on trademark owned by a Lagos-based firm.

The court declared MTN had breached the property rights of Citilink Accesscorp Limited, a little-known firm, when it used the “WEBPLUS” trademark for years.

Justice Daniel Osiagor ruled that MTN’s use of “MTN WEBPLUS” unlawfully mimicked Citilink’s registered trademark, awarding N70 million per year in damages from 2014 to 2025, Leadership and Nation reported.

The court also imposed a 15% annual interest on the judgment sum until full payment.

Citilink, which registered the WEBPLUS trademark in 2001 and renewed it in 2014, sued MTN in 2014, arguing that the telecom company’s branding misled the public and harmed its business. The firm demanded N1.5 billion in damages and an order to stop MTN from using the name.

Corporate records show that Citilink Accesscorp Limited was incorporated in Lagos in 1997 but its current status was not immediately clear. The company has no website and details about its core business were not known.

MTN had argued that its use of WEBPLUS was legal, citing a 2012 trademark application when Citilink’s registration had lapsed. It also argued that the defense of “honest concurrent use” applied in the case, according to local media.

It said even where the trademarks were similar, MTN used them in good faith and without deceptive intent, urging the court to dismiss the claims.

The court dismissed this defense, ruling in favour of Citilink but rejecting some of its demands, such as the destruction of MTN’s servers.

Justice Daniel Osiagor held that MTN’s use of “MTN WEBPLUS” or “MTN WEB+” unlawfully mimicked the plaintiff’s trademark.

The judge also granted a perpetual injunction, prohibiting MTN from using the WEBPLUS trademark in any form.

Financial troubles & fines

The ruling marks yet another setback for MTN, which has grappled with financial troubles and multiple government fines in recent years. In 2016, the telecom giant was initially hit with a staggering $5.2 billion penalty—later reduced to $1.6 billion—for failing to disconnect 5.1 million unregistered mobile subscribers.

Four years later, in 2020, MTN settled a prolonged tax dispute with Nigerian authorities over alleged violations of foreign exchange rules in dividend repatriation, agreeing to pay a $53 million fine.

MTN has suffered significant financial losses over the past two years, as the devaluation of the naira continues to weaken the South African-headquartered company.

Nigeria’s ongoing economic crisis, marked by record-high inflation and currency depreciation, has hit the telecom sector hard. MTN Nigeria posted a ₦137 billion loss in 2023, which worsened to ₦514.9 billion in the first nine months of 2024.

Last week, MTN Nigeria lost its position as the MTN Group’s highest-earning subsidiary for the first time since 2019, after posting a ₦400.4 billion post-tax loss for 2024. The Nigerian unit slipped behind the Group’s West and Central Africa (WECA) region and South Africa in revenue rankings.

It was not immediately clear if the firm will appeal the ruling of the court.