Malawi News

TNM sued for K22 billion over intellectual property

TNM sued for K22 billion over intellectual property
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Ananius Cyrus Zulu has dragged TNM Mpamba Limited and Telekom Networks Malawi (TNM) plc to court, demanding K22 billion for alleged theft of his intellectual property.

Zulu, a Malawi University of Science and Technology (Must) employee biomedical engineer, claims he is the registered property owner of patent number MW/P/2021/00002 in respect of a software programme known as Bank Nkhonde Online.

The programme is a digitised form of the traditional village bank concept where groups of people put savings together and lend each other money at an interest (mobile banking system).

Defendant’s counsel: Kaphale

Through Ritz Attorneys at Law, the engineer is suing TNM Mpamba Limited as first defendant and TNM plc as second defendant and parent company of the first defendant. The defendants are being represented by Messrs Kalekeni Kaphale Lawyers and TJM & Associates.

The first defendant is a limited liability company and a subsidiary of the second defendant that provides mobile money services while TNM plc is involved in the telecommunications space as a provider of mobile phones, Internet services and other related services.

Zulu is suing TNM Mpamba Limited and Telekom Networks Malawi (TNM) plc for infringement of patent and copyright. The matter is in the High Court Commercial Division in Blantyre before Justice Ken Manda.

In an interview, Gracian Luzu, one of the Ritz lawyers representing Zulu, said the matter was awaiting trial as pleadings were closed save for their reply to TNM’s re-amended defence.

Said Luzu: “We will respond to the new defence and compile paginated trial bundle.”

On his part, Tusume Mwabungulu of TJM & Associates also confirmed representing TNM Mpamba Limited and TNM plc alongside Kalekeni Kaphale, SC, who is the lead counsel.

“I can confirm that Messrs Kalekeni Kaphale and TJM & Associates are representing the defendants. Hearing of the matter is yet to commence,” he said.

According to a statement of case, TNM Mpamba Limited copied and (or) adapted Zulu’s patented USSD (unstructured supplementary service data) blueprint of Banki NKhonde online and styled it Mudzi Wathu Village Bank (the infringing software or the impugned programme).

The statement further says TNM Mpamba Limited embedded the intellectual property to its Mpamba collection of mobile money services, “heavily publicised it and made profit out of the claimant’s intellectual property”.

The statement claims Zulu learnt about the development on April 10 2022, when TNM Mpamba Limited was introducing the Mudzi Wathu Village Bank product exactly the same idea he presented to Telekom Networks Malawi plc on July 2 2020.

“The defendants have in the infringing software adapted the user interface of the claimant’s software by using the claimant’s sequential algorithm for reaching out to its users to register groups.

“In short, the infringing software is exactly the claimant’s Bank Nkhonde Online, adapting each and every feature thereof in terms of its options, arrangement of options for navigating through it, its language, nature of options for its usage, the general system design, means by which the software is displayed on cellular phones and on smart phones, and its whole USSD blueprint,” reads the statement.

The statement further claims TNM plc heavily publicised, advertised and promoted the software through public events and via their widely followed social media platforms, including Facebook, Twitter and Instagram.

Therefore, Zulu is claiming K10 billion as reasonable royalties covering the period from the day of launch of the defendants’ Mudzi Wathu Village Bank to the date of judgement.

He is also claiming general damages in excess of K5 billion for infringement of copyright, general damages in excess of another K5 billion for infringement of patent in his Bank Nkhonde Online.

Further, Zulu is demanding K2 billion as punitive damages for infringement of patent and copyright in his Bank Nkhonde software and costs of the action on an indemnity basis.

He is also seeking a court declaration that the Mudzi Wathu Village Bank is an infringing software in respect of copyright in, and patent letters for, the Bank Nkhonde Online.

Zulu is also asking the court to grant a permanent injunction restraining the defendants whether acting by their directors, officers, servants or agents, or any of them or otherwise howsoever from infringing patent number MW/P/2021/00002.

Further, he is seeking a court order for the delivery-up or destruction, whichever is most practicable, upon oath of the TNM’s Mudzi Wathu Village Bank which is the infringing software programme, the defendants’ control, possession, power and custody.