Kenya: Safaricom Sued for Alleged Intellectual Property Theft

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According to Business Daily, Kenya’s largest mobile provider, Safaricom, lost in their attempt to block the hearing of the intellectual property infringement action that may cost them millions of dollars in the United States.

According to Peter Nthei Muoki and Beluga Ltd, the product Safaricom wanted to push out is comparable to an idea they discussed in 2021 with the top authorities of another communications company.

High Court Judge Josephine Mong’are denied the petition brought forward by Muoki and Beluga Ltd. after the cell operator’s appeal to suspend it was denied. According to reports, Muoki filed a lawsuit against Safaricom in 2022, demanding that the company give him compensation for the benefits and earnings obtained from the violation of his copyright, as well as for the court to require Safaricom to pay him royalties and licensing fees, or for the court to instruct Safaricom to pay Muoki a sum equal to $68 million for the product.

Under the short message service (USSD) protocol, Safaricom introduced their new offering, which is referred to as “Manage Child Account.” According to Muoki, the program is comparable to his product known as “M-Teen Account,” which is an M-Pesa sub-wallet designed for individuals between the ages of 13 and 24 and intended to improve parental supervision over the spending behaviors or patterns of those individuals.

According to Muoki, he approached Safaricom in March 2021 to discuss his concept. However, following the meeting, he was informed that it would be difficult to execute the product since it would target teens who did not have identity cards. This step would require clearance from the Central Bank of Kenya. Muoki stated that he approached Safaricom in March 2021 to discuss his idea.

He stated that they then informed him that they were considering a concept that was quite similar to their own.

A few months after their initial encounter, Muoki reported that he was astounded to discover that Safaricom was doing a test run of a device that was an exact clone and paste of his discovery but was being marketed under a different name.

After that, Muoki made an application to the court, which was granted, to compel Safaricom to disclose the supporting papers, which he claims are in the hands of the business.

In opposition to the application, Safaricom said that Muoki was seeking sensitive records about the Central Bank’s authorization of a crucial payment system managed by the telecom with M-Pesa. Safaricom’s opposition to the application was based on this reasoning.

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