Airtel removes M-Pesa branding from agent shops

Corporate News

Airtel Kenya chief executive Adil El Youssefi. PHOTO | FILE 

By SANDRA CHAO-BLASTO

In Summary

• Airtel Kenya says the removal of the references to M-Pesa in all its advertising boards is an act of good faith but does not amount to admitting any liability.

Airtel Kenya says it has removed all M-Pesa branding from its mobile money agency outlets in response to a court case filed by Safaricom claiming breach of its trademark.

Linda Kaai-Kiriko, Airtel’s legal and regulatory affairs manager, says in court documents that the removal of the references to M-Pesa in all its advertising boards is an act of good faith but does not amount to admitting any liability.

“Upon realising that this suit had been filed Airtel acted with speed and deleted all references to the plaintiff’s services from its boards by July 14,” says Ms Kaai-Kiriko in the court papers.

Safaricom moved to court in June claiming that Airtel was infringing on its M-Pesa trademark for the promotion and marketing of Airtel Money by including its symbols on the advertising billboards of its agents.

Safaricom says it had written a cease and desist letter to Airtel on May 15 over the use of its logo by Airtel Money agents after investigations showed infringement in 69 outlets across the country.

The telco, which has a commanding lead market share, claimed that Airtel initially wrote to it saying it was not aware of the trademark infringement and that it would undertake investigations and revert.

Airtel later wrote an e-mail to Safaricom seeking a way forward on the shared agents branding on May 27.

Ms Kiriko claims that Airtel engaged its rival in discussions to find an amicable solution after the firm received the demand notice with Airtel Kenya CEO Adil El Youssefi and Safaricom chief executive Bob Collymore leading the conversations.

“Safaricom filed the instant suit despite the fact that the chief executives of the two companies were in direct communication with each other on the subject matter demonstrating the seriousness with which the issue was being treated,” she said.

Airtel says in court documents that it had approached some of Safaricom’s M-Pesa  agents after the Competition Authority compelled Safaricom to remove and nullify all the clauses that provided for exclusivity of trade with them in June last year.

READ: Safaricom, Airtel fail to settle cash transfer trademark dispute

Airtel’s legal affairs officer claimed that the agents who agreed to enter into contract with it did not object to the mobile money branding on their premises, saying they wanted the signage to show that they also offered Airtel Money services in addition to M-Pesa so as not to mislead customers.

“We agreed to put the notices on the boards as requested by the agents merely stating that the alternative competing services were also available at the respective sites,” she said. Safaricom’s in-house counsel Daniel Ndaba however argues in court documents that the agreement of the retailer to the branding of their outlets was not a licence for Airtel to infringe on the M-Pesa trademarks.

Mr Ndaba said that the infringement was not an issue that required discussion, adding that Safaricom filed the suit upon lapse of the time given in the documents.

“There was no communication whatsoever between the chief executive officers of Airtel and Safaricom towards the resolution of the dispute,” he says.