Safaricom Fails to Halt Intellectual Property Infringement Case Amid Plans for Similar Product

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Safaricom’s bid to suspend the hearing of an intellectual property infringement case, where innovator Peter Nthei Muoki and Beluga Ltd allege the telco copied their idea, has been denied by High Court Judge Josephine Mong’are.

The case, scheduled for October 31, centers on Muoki’s claims for compensation and royalties, with Safaricom facing potential payment of Sh10 billion.

Safaricom’s attempts to delay the hearing of an intellectual property infringement case have been thwarted by High Court Judge Josephine Mong’are. The case, brought by innovator Peter Nthei Muoki and Beluga Ltd, alleges that Safaricom unlawfully replicated their invention, originally shared with the telco’s officials in 2021.

Peter Nthei Muoki took legal action last year, seeking compensation for the gains and profits arising from the alleged infringement of his intellectual property. Additionally, he requested the court to mandate Safaricom to pay him royalties and licensing fees, or alternatively, a sum of Sh10 billion in relation to the product in question.

In response, Safaricom sought to suspend the case’s hearing, scheduled for October 31. They based this request on an ongoing appeal the telco filed against an order instructing it to provide a list of documents, including correspondence with Huawei Technologies (Kenya) Company Limited regarding a proposed solution for a parent-child control product functionality within the M-Pesa platform.

However, Judge Josephine Mong’are dismissed Safaricom’s application, emphasizing, “In conclusion, I find and hold that the application by the defendant has no merit and is hereby dismissed with costs to the Plaintiff.” This decision means that the case will proceed as planned, with potentially significant financial implications for Safaricom.

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