A Federal High Court in Abuja has ruled that the Central Bank of Nigeria holds exclusive ownership rights over the eNaira digital currency platform and trademark. In a judgment delivered on Friday, May 22, Justice James Omotosho issued a perpetual injunction restraining eNaira Payment Solutions Limited from presenting itself as the owner of the eNaira trademark.Although the company had been registered with the Corporate Affairs Commission since 2004, the court held that the name was misleading because of its close connection to Nigerias sovereign currency. The name chosen by the plaintiff on its incorporation is in the circumstances unregistrable due to the misleading nature of the name, which suggests government patronage, Justice Omotosho ruled.The court further noted that the Trademark Registry had earlier informed the company, through a letter dated November 15, 2021, that approvals granted for applications related to the eNaira trademark under classes 36 and 42 had been cancelled and withdrawn. According to the judgment, the company was also notified that eNaira is a national intellectual property and constitutes a symbol and national asset of Nigeria.The court rejected the companys attempt to strip the CBN of ownership rights over the digital currency platform, holding that the firm had no superior legal claim to the trademark. A party that has no legal right cannot be entitled to an injunction. The purport of this is that, prima facie, the plaintiff has no valid trademark to the exclusive use of the eNaira trademark, the court held.Justice Omotosho also emphasised that under Section 852(2) of the Companies and Allied Matters Act, the Corporate Affairs Commission has the authority to reject or order changes to company names that suggest affiliation with the government. The eNaira name is so closely linked to the legal tender of Nigeria, which is exclusively controlled by the CBN. The plaintiff, with the name eNaira, even though it had been incorporated since 2004, has a misleading name.An average person on the street is most likely to think that the plaintiff is an agent of the Federal Government or the CBN, the judge said. The court also observed that the companys proposed activities involving digital currency operations created the impression that it had official government authority to issue or manage a digital version of the naira.The proposed business of the plaintiff, which according to the evidence-in-chief of PW-1 is the creation and control of a digital currency on their electronic payment platform, no doubt creates the impression that the plaintiff has the authority of the Federal Government of Nigeria to issue and control a digital form of the Naira, the ruling stated.Justice Omotosho warned that allowing a private entity to control the eNaira name could undermine public trust and create confusion within Nigerias financial system. Any digital currency with the name eNaira will no doubt create the impression that it is an official digital form of the Naira. The plaintiff cannot assert control over the eNaira name or issue it.This would be disastrous for the Nigerian economy and will create skepticism among users, as it is not guaranteed by the Central Bank of Nigeria, he added. The court held that the CAC had lawfully directed the company to change its name within six weeks of its December 9, 2021 directive, but noted that the company failed to comply.Consequently, the court ordered the company to immediately adopt a new name that does not contain the word Naira.The suit, marked FHC/ABJ/CS/113/2021, was dismissed, while the court awarded N10 million in costs in favour of the CBN following its successful counterclaim.During proceedings, counsel to the plaintiff, David Ityonyman, argued that the word Naira was not exclusive to Nigeria and should not be monopolised. Nothing stops India from having a Naira. Also, countries like the U.S. and Canada make use of dollars. None of them has laid claim to the name, Ityonyman submitted.He also argued that the company had used the Naira branding internationally for more than two decades and had built substantial goodwill before the CBN launched the eNaira platform in 2021.The post Court affirms CBNs sole ownership of eNaira platform appeared first on Linda Ikeji Blog.