The Commercial Division of the High Court, yesterday, ruled in favour of Bakhresa Grain Milling (Rwanda) Ltd in a case where its rival, Mikoani Traders Limited, claimed that the former had obtained the latter’s brand name, Azania, in bad faith with intent to stifle competition.

Mikoani, represented by Geoffrey Mwine of GMCC Law Chambers and Safari Kizito of Bona Fide Law Chambers, had asked the court to annul the process in which Bakhresa (makers of Azam products) had registered the name ‘Azania’ as their brand.

The brand is registered to Mikoani Traders Limited, a Tanzanian firm whose products rival those of Bakhresa, produced under the brand name Azam.

Bakhresa also has its headquarters in Tanzania.

The court heard that when Bakhresa extended their operations to Rwanda, they filed for ownership of Azam and other related trademarks, including Azania and received protection for the trademarks in April 2013.

But Mikoani’s lawyers argued Bakhresa shouldn’t have included Azania as one of the trademarks it wanted protected in Rwanda since they knew someone officially owned it already.

Mikoani also argued that giving away its official brand to a rival firm undermines East African integration process and prayed that the court restores the ownership of the brand to the rightful party.

Bakhresa lawyer Moise Nkundabarashi, of Trust Law Chambers, countered that, in 2013, when his client obtained rights over the Azania brand in Rwanda, Mikoani’s registration certificate in Tanzania had long expired on January 26, 2008.

Mikoani renewed ownership of the brand in Tanzania on July 24, last year, but Bakhresa had already acquired the brand name on April 5, 2013, in Rwanda, he said.

Verdict

The court dismissed the case on grounds that Mikoani, while active in Rwanda since 2001, had not taken the necessary steps to protect their brand.

The judge also concurred with Bakhresa’s lawyers on the argument that the defendant had followed the right procedures and broke no laws in the process of acquiring the Azania name.

The judge also ruled that Mikoani failed to prove that Bakhresa acted in bad faith to avoid competition, adding that the brand acquisition was conducted within the law.

Mikoani lawyer Mwine stormed out of the Nyamirambo-based court after the verdict was read, telling The New Times later that they would appeal.

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