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Court of AppealDismissedCivil Appeal 285 of 2017· [2022] KECA 747 (KLR)

Jambopay Express Limited v Webtribe Limited t/a Jambopay

Court of Appeal
27 May 2022
4,481 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~18 min to read original · ~4 min brief

The bottom line

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Kenya's Court of Appeal confirmed that a company name too similar to a registered trade mark can get the company itself deregistered.

What this practically means

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Executive summary

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The Court of Appeal (Karanja, Okwengu and ole Kantai, JJA) dismissed an appeal against the High Court's judgment (Farah Amin, J, 15 May 2017) which found that Jambopay Express Limited had infringed Webtribe Limited's registered trade mark 'JamboPay'. Webtribe had sued as proprietor of the 'JamboPay' online payment gateway, registered on 17 December 2009, alleging infringement, passing off, breach of confidentiality and unjust enrichment after the appellant - whose director had earlier negotiated with Webtribe over a 'JamboPay Express' subsidiary - was incorporated in October 2012 and adopted the name. The High Court granted an injunction restraining use of 'JamboPay' in any format and directed the Registrar of Companies to de-register 'JamboPay Express', but found insufficient evidence to assess damages. On appeal, the Court identified six issues. It first resolved a dispute over the mark itself, concluding from the certificate and other record documents that the registered mark was 'JamboPay', not 'JamboPay plus device'. It then upheld the finding of infringement, holding that the respondent had registered and publicly used the mark long before the appellant's incorporation and that the similarity was deliberately created. Applying Giella v Cassman Brown and Mrao Ltd, it held the infringement established a prima facie case justifying the injunction. It upheld the deregistration order as the only solution to stop continued infringement, noting the directors could have chosen a non-infringing name. It held Webtribe Limited retained capacity to sue and properly received costs as the successful party under Section 27 of the Civil Procedure Act. The appeal was dismissed with costs.

Key legal issues

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01

Whether the registered trade mark was 'JamboPay' or 'JamboPay plus device'

Holding

The Court concluded from the certificate and other record documents that the registered mark was 'JamboPay', rejecting the appellant's contention that it was 'JamboPay with a device'.

Reasoning

Although the photocopied certificate obscured the letters before 'Pay', other record documents (an email and a newspaper cutting) showed the letters preceding 'Pay' spelled 'Jambo' with three dots in a triangular pattern. The spacing on the certificate could only be construed to fit the word 'Jambo'. Nothing supported the appellant's 'JamboPay with a device' contention.

02

Whether the appellant's name 'JamboPay Express' infringed the respondent's trade mark

Holding

The trial judge's finding of infringement was upheld; the similarity was deliberately created to benefit from the respondent's trade mark.

Reasoning

The respondent registered and publicly used 'JamboPay' long before the appellant's incorporation in October 2012. The appellant's director had negotiated with the respondent over the name 'JamboPay Express' for a subsidiary, so could not claim ignorance. The combination 'JamboPay' was unique despite 'Jambo' being common parlance, and the similarity suggested association.

p. 7
03

Whether the principles for an injunction were satisfied

Holding

A prima facie case was established by proof of infringement, and the trial judge properly exercised her discretion in granting the injunction.

Reasoning

Applying Giella v Cassman Brown and Mrao Ltd, the established confusion and infringement showed breach of rights requiring intervention, sufficient to constitute a prima facie case. The learned judge properly addressed her mind to the law by referring to the locus classicus.

p. 7
04

Whether the order for deregistration of the appellant was proper

Holding

Deregistration was upheld as the only solution to stop the continued infringement, since the directors could have registered under a non-infringing name.

Reasoning

Given the similarity between the appellant's name and the respondent's trade mark, the judge was under a duty to protect the respondent and balance the parties' rights. The appellant's directors had the option of registering under a different name that did not infringe the trade mark.

p. 7
05

Whether the respondent, sued as 'Webtribe Limited t/a Jambopay', was properly entitled to costs

Holding

Webtribe Limited remained the entity with capacity to sue, and its award of costs was proper as the successful party.

Reasoning

It was not disputed that Webtribe Limited filed the suit and was awarded costs; trading as 'JamboPay' did not change that fact and was relevant only to the trade mark in dispute. Under Section 27 of the Civil Procedure Act, costs follow the event absent good reasons to the contrary.

p. 7

Legal principles established

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  • On a first appeal, the Court of Appeal must re-appraise the evidence and draw its own conclusions, while making allowances for not having seen or heard the witnesses.
  • The burden of proving trade mark infringement lies on the party alleging it, and it is for the judge, not witnesses, to decide whether a mark so nearly resembles a registered mark as to be likely to deceive or cause confusion.
  • Costs follow the event under Section 27 of the Civil Procedure Act and will tilt in favour of the successful party unless there are good reasons to order otherwise.

Court orders

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  1. 1.Appeal dismissed with costs

Authorities

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Legislation

  • Trade Marks ActSection 17
  • Trade Marks ActSection 49
  • Trade Marks ActSection 15
  • Trade Marks ActSection 36B(1)
  • Companies Act Chapter 486
  • Court of Appeal RulesRule 29
  • Civil Procedure ActSection 27

Cases cited (9)

  • Auto Rescue vs Auto Rescue Limited
    [2008] eKLR

    Law guards against double registration of companies with similar or identical names, protecting the first registered company and the public.

  • Giella vs Cassman Brown & Co. Limited
    [1972] EA 358

    Locus classicus on principles for granting interlocutory injunctions, including prima facie case.

  • Gitobu Imanyara & 2 others v Attorney General
    [2016] eKLR

    First appeal is by way of retrial; court must reconsider the evidence and draw its own conclusions.

  • Aktiebolaget Jonkoping – Vukan Indstricksfa – Briksaktiebolag v. East Africa Match Company Ltd
    [1964] E.A. 62

    Plaintiff must prove deceptive resemblance; the judge must decide likelihood of deception and cannot abdicate.

  • Payton & Co. Ltd. v. Snelling Lampard & Co., Ltd
    [1901] A.C. 311

    Whether a mark is likely to deceive is a matter for the judge, not witnesses.

  • Parker Knoll Ltd., v. Knoll International Ltd.

    No witness may decide the question of deceptive resemblance; the judge must bring his own mind to bear.

  • Mrao Limited vs First American Bank of Kenya Ltd and 2 others
    [2003] eKLR

    Definition of a prima facie case in civil matters.

  • Farah Awad Gullet v CMC Motors Group Limited
    [2018] eKLR

    Costs are at the court's discretion, to be exercised judiciously; withheld from a successful party only for good reasons.

  • Githiaka vs Nduriri
    [2004] 2 KLR 67

    Cited within Farah Awad Gullet on the discretionary nature of costs.

On appeal from
High Court at Nairobi
NAIROBI H.C.C.C. 159 OF 2014
Jurisdiction invoked
First appeal to the Court of Appeal under Rule 29 of the Court of Appeal Rules

Key timeline

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Practical implications

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Frequently asked questions

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Cite this brief

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Cite this brief

Caselaw, "Jambopay Express Limited v Webtribe Limited t/a Jambopay", Case Analysis (2022). Civil Appeal 285 of 2017. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2022/747/eng@2022-05-27

Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.