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INTELLECTUAL PROPERTY LAW IN NIGERIA: ANALYZING THE IMPORTANCE OF TRADE SECRETS

By: Victory Sarah Opawoye

Introduction:
According to Jake Frankenfield, trade secrets are defined as “any practice or process of a company that is generally not known outside the company.” These trade secrets can be the most valuable assets of a company, unlike patents which can be documented. The significance of trade secrets lies in their secrecy, making it challenging to regulate. Trade secrets protect undisclosed information as long as it holds economic value.
Importance of Protecting Trade Secrets:
The World Intellectual Property Organization (WIPO) highlights several reasons for protecting trade secrets. Firstly, it helps maintain and promote standards of commercial ethics and fair dealing. Secondly, trade secret protection provides an incentive for businesses to innovate by safeguarding the significant time and capital invested in developing advantageous innovations, especially those that are not patentable or do not merit the cost of patenting. Lastly, it prevents competitors from using these innovations without shouldering the costs and risks associated with their development.
Qualifications for Trade Secret Protection:
For a business to qualify for trade secret protection, certain criteria must be met. Firstly, the information must be a secret and have potential commercial value. Secondly, the holder of the trade secret must have taken reasonable steps to ensure its confidentiality. According to Article 39 of the Trade-Related Aspects of Intellectual Property Rights (TRIPS), trade secrets are classified as undisclosed information that needs protection as long as the following conditions are met: (i) the information is not generally known or easily accessible to those dealing with similar information, (ii) it holds commercial value due to its secrecy, and (iii) reasonable steps have been taken by the lawful owner to maintain its confidentiality.


Types of Trade Secrets:
Trade secrets encompass a wide range of information, including software algorithms, invention designs, ingredients, devices, methods, formulas, processes, and any other confidential business information that provides a competitive advantage. Unlike other forms of intellectual property, trade secrets do not require procedural formalities for protection and can be safeguarded for an extended period.

Examples of Trade Secrets:
Notable examples of trade secrets include the Google Search Algorithm, which undergoes regular updates to ensure system security, Coca-Cola’s Formula, and McDonald’s Big Special Sauce. These trade secrets represent critical assets for the success of these companies.
Trade secrets play a crucial role in businesses by safeguarding valuable and undisclosed information. By protecting trade secrets, companies can maintain their competitive advantage and prevent unauthorized use of their innovations. Understanding the importance of trade secret protection is essential for businesses operating in Nigeria’s intellectual property landscape

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Remedies Available For Aggrieved Parties in a Civil Suit under the Law of Torts: A Comparative Analysis of Damages Awarded In Nigeria and the UK

By: Ifunanya Denye Anyene

Introduction:

Imagine a local newspaper publishes a scathing article about you, falsely accusing you of embezzlement and as a result, your reputation is tarnished. Such an act would be classified as defamation under the law of torts.

Much like a sculptor crafts a masterpiece from clay, the law of torts gives a structure to address harm. When someone’s rights are violated, they enter the legal process seeking solutions. They can ask for payment similar to fixing something broken, or request court orders to stop more harm, like fixing a problem before it gets worse. In this way, tort law offers different ways to fix issues and restore fairness for people who’ve been wronged in a civil case.

The law of torts is a fundamental aspect of civil law that governs the rights and obligations of individuals regarding civil wrongs committed against others. When someone suffers harm due to another person’s actions or negligence, they have the right to seek remedies through a civil suit.

For example in the case of Basorun v Ogunlewe, the respondent sued the appellant for using defamatory words in a publication made about him. He sued for ten million naira damages for libel, the trial court after consideration of the several claims awarded the sum of six million naira to the plaintiff. This may be classified as compensatory damages which will be explored in subsequent sections of this article.

This article explores the remedies available for aggrieved parties in tort cases and conducts a comparative analysis of the damages awarded in Nigeria and the United Kingdom (UK).

Remedies Available for Aggrieved Parties in Torts

In a tort case, the aggrieved party, also known as the plaintiff, can seek various remedies to be compensated for their losses or injuries. The primary remedies available to them are:

1. Compensatory Damages: Compensatory damages are awarded to compensate the plaintiff for the harm they have suffered. These damages are meant to put the plaintiff in the position they would have been in if the tort had not occurred. They can be both economic and non-economic in nature, covering medical expenses, lost wages, property damage, pain, and suffering.

2. Special Damages: Special damages are a sub-category of compensatory damages that address specific monetary losses incurred by the plaintiff. These losses must be quantifiable and directly related to the tort. Examples include medical bills, repair costs, and other out-of-pocket expenses.

3. General Damages: General damages are also compensatory in nature, but they are not easily quantifiable as they address non-monetary losses such as emotional distress, mental anguish, loss of consortium, and loss of enjoyment of life.

4. Punitive Damages: Punitive damages, also known as exemplary damages, are awarded in exceptional cases where the defendant’s behaviour was particularly reckless, malicious, or intentional. The purpose of punitive damages is to punish the wrongdoer and deter others from engaging in similar misconduct.

5. Injunctive Relief: Injunctive relief is a court order that requires the defendant to do or refrain from doing something. It is sought when monetary damages are insufficient to remedy the harm caused by the defendant’s actions, such as in cases involving environmental harm or intellectual property infringement.

Comparative Analysis: Damages Awarded in Nigeria and the UK

Nigeria and the UK have distinct legal systems and practices, which can lead to differences in the damages awarded in tort cases.

In Nigeria, the award of damages is primarily governed by common law principles and statutory provisions. However, the Nigerian legal system faces challenges such as delays in court proceedings, inadequate enforcement of judgments, and inconsistent decisions. As a result, damages awarded in Nigeria tend to be more conservative compared to the UK. Compensatory damages in Nigeria are generally limited to the actual losses suffered by the plaintiff, which may include medical expenses, property damage, and loss of income. Non-economic damages, such as pain and suffering, are often awarded in more severe cases but are usually lower than what might be awarded in the UK.

In contrast, the UK has a well-established legal system with a strong emphasis on precedents. Damages awarded in the UK often include substantial compensation for non-economic losses, especially in cases of severe injuries or medical malpractice. The UK courts also tend to award higher amounts for pain and suffering compared to Nigeria.

Punitive damages are more common in the UK than in Nigeria, reflecting the UK’s approach to deterrence and punishment for intentional and malicious conduct.

Conclusion:

The remedies available for aggrieved parties in tort cases aim to compensate them for the harm suffered due to another person’s actions or negligence. Both Nigeria and the UK provide compensatory damages for economic and non-economic losses, though the amounts and availability of certain types of damages can vary significantly between the two jurisdictions. While Nigeria tends to be more conservative in its approach to damages, the UK often awards higher amounts, especially in cases involving severe injuries or intentional misconduct. It is essential for plaintiffs to understand the remedies available in their respective jurisdictions to seek appropriate compensation for the harm they have endured.

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PROTECTING INTELLECTUAL PROPERTY (IP)                                                                                                                                 

By: Victory Sarah Opawoye

The World Intellectual Property Organization (WIPO) defines intellectual property as “creations of the mind inventions, literary works, symbols, names and images used in commerce”. Intellectual property also refers to any intellectual creation, such as literary works, artistic works, inventions, designs, symbols, names, images, computer code, etc.

 The purpose of intellectual property is to safeguard the individuals who create various works, such as literary and artistic works, and it encompasses aspects such as copyrights, patent and trademarks.

Frequently Asked Questions (FAQ)

At What Point should I Safeguard my intellectual property?

When something new is created, it must be protected by the owner of such assets. For example, there was a cease-and-desist notice from the creator of the “ELLU P” slogan to the general public in a bid to enforce his intellectual property rights (IPR).

WHY SHOULD I PROTECT MY IP?

Although it might be said that it is not compulsory, protecting your IP is a necessity. Imagine pitching your idea to an investor, the idea is turned down, reformed and stolen from you, without any credit or your consent. How do you enforce your IP right?

Intellectual property protection gives you exclusive rights to your works and a right of redress where there is a violation. While researching, I came across a famous IP case, Waymo LLC v. Uber Techs., Inc. – No. C 17-00939 WHA, 2017 U.S. Dist. LEXIS 73843 (N.D. Cal. May 11, 2017).

Waymo is the self-driving car unit under Google’s parent company Alphabet. It started in 2009 as Google’s self-driving car project and broke off from Google in late 2016. Anthony Levandowski, the central figure in this lawsuit and the man accused of stealing trade secrets, was a co-founder of Waymo and worked on the project as a technical lead. Levandowski left Waymo in 2016 to found Otto, a start-up company focused on self-driving trucks, which was acquired by Uber in August 2016. The controversy in these cases arises from Waymo’s claim that, shortly before he left Waymo, Levandowski downloaded more than 14,000 files related to Google’s self-driving car technology. Allegedly, Uber proceeded with the acquisition of Otto with full knowledge of these files and with the express intention of using that intellectual property in their own self-driving technologies, a theory which is supported by the fact that Uber indemnified Levandowski for intellectual property claims as part of the acquisition.

Waymo accepted a settlement offer from Uber. Uber agreed to a financial deal that includes 0.34% of Uber equity at a $72 billion valuation.[i]

What are trade secrets?

Trade secrets are business practices, formulas, designs or processes, recipes used in a business. E.g Coca-Cola formular

BENEFITS OF INTELLECTUAL PROPERTY PROTECTION

1.     Copyright gives authors, performers, producers, artists, writers, designers, cinematographers a right to obtain economic reward for their creations, inventions, ideas, and works.

2.     It can help turn ideas into profit making businesses. Intellectual property rights can help you generate business through the licensing, sale and even commercialization of the products and services protected under IPRs. This will ultimately improve the market share and helps in raising profits. Having registered and protected intellectual property rights can also raise the business’ value in case of sale, merger or acquisition.

3.     IP can be used to attract investors and can be used as a security. A patent for an invention can be used as a collateral or security.

4.     It creates an identity for your business. Every business has its uniqueness which is vital to the business as it distinguishes your products from those of other brands and promote them to reach the target audience.

5.     When your IP is protected, you can exercise the right to institute an action in court against any individual, company, or group of individuals infringing on such rights.

6.     Protecting IP will also ensure no one claims your work and ideas for their ideas own benefit without requisite consent.

The major reason for Intellectual Property Law is to encourage the creation of a wide variety of intellectual goods and services for consumers. To achieve this, the law gives people, and businesses the right to information and intellectual goods they create.

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ANALYZING THE POWERS OF THE SUPREME COURT: THE LEGALITY OF THE CBN’s DIRECTIVE ON NAIRA REDESIGN

By: Victory Sarah Opawoye

The question of whether the Supreme Court of Nigeria has jurisdiction to entertain and determine the naira redesign suit to restrain the Central Bank of Nigeria from effecting its February 10 deadline on naira swap have been viewed from different perspectives by lawyers, legal analysts and experts. What exactly is the position of the Nigerian Law and does the Supreme Court have authority to make decisions on naira redesign?

What is Jurisdiction?

In law, Jurisdiction is the authority of a court to hear and determine cases. This authority is derived from the constitution. It is the right and power to interpret and apply the law.[1]

It is very vital and essential in any judicial system to ascertain the power of a court to determine a cause of action presented before it. Where a decision is reached and the court without jurisdiction of a court it is void ab initio, in other words of no legal effect.

In a recent case of GTB v. Toyed (Nig) Ltd & Anor (2016)2 the Nigerian

Court of Appeal, per Ndukwe-Anyawu, J.C.A restated the elementary law thus:

The law is well settled and it no longer admits of any argument

that jurisdiction is the very basis and the life wire of every matter

and on which any Court tries or hears a case. It is, metaphorically

speaking, the life blood of all trials, whether it be at the Court of

trial or on appeal, and without which

In a recent case of GTB v. Toyed (Nig) Ltd & Anor (2016)2 the Nigerian

Court of Appeal, per Ndukwe-Anyawu, J.C.A restated the elementary law thus:

The law is well settled and it no longer admits of any argument

that jurisdiction is the very basis and the life wire of every matter

and on which any Court tries or hears a case. It is, metaphorically

speaking, the life blood of all trials, whether it be at the Court of

trial or on appeal, and without which

In a recent case of GTB v. Toyed (Nig) Ltd & Anor (2016)2 the Nigerian

Court of Appeal, per Ndukwe-Anyawu, J.C.A restated the elementary law thus:

The law is well settled and it no longer admits of any argument

that jurisdiction is the very basis and the life wire of every matter

and on which any Court tries or hears a case. It is, metaphorically

speaking, the life blood of all trials, whether it be at the Court of

trial or on appeal, and without which all such trials and hearings

are a nullity notwithstanding how well or meticulous such a

In a recent case of GTB v. Toyed (Nig) Ltd & Anor (2016)2 the Nigerian

Court of Appeal, per Ndukwe-Anyawu, J.C.A restated the elementary law thus:

The law is well settled and it no longer admits of any argument

that jurisdiction is the very basis and the life wire of every matter

and on which any Court tries or hears a case. It is, metaphorically

speaking, the life blood of all trials, whether it be at the Court of

trial or on appeal, and without which all such trials and hearings

are a nullity notwithstanding how well or meticulous such a

In GTB v. Toyed (Nig) Ltd & Anor (2016), the Nigerian Court of Appeal, Per Ndukwe- Anyawu JCA stated thus;

         “The law is well settled and it no longer admits of any argument

          that jurisdiction is the very basis and the life wire of every matter

          and on which any court tries or hears a case. It is metaphorically speaking,

          the life blood of trials, whether it be at the court of trial or on appeal,

         and without which all such trials and hearings are a nullity,

         notwithstanding how well or meticulous such a trial or proceeding

         had been conducted or how sound or profound the resultant judgment. It is  

        simply a nullity.”[2]

The Supreme Court has original jurisdiction on legal disputes between States or between States and the Federal government. Section 232 of the constitution provides that:

     (1) The Supreme Court shall, to the exclusion of any other court, have original jurisdiction in any dispute between the Federation and a state or between states if and in so far as that dispute involves any question (whether of law or fact) on which the existence or extent of a legal right depends.

  (2) In addition to the jurisdiction conferred upon it by subsection (1) of this section, the Supreme Court shall have such original jurisdiction as may be conferred upon it by any Act of the National Assembly.

This case is a legal dispute between the states and the federal government and as such it invokes the original jurisdiction of the Supreme Court. It refers to the authority to hear cases that are brought directly to it. The Supreme Court provided the following guide for determining whether a court has jurisdiction. Hon. Justice Bairaman (FJ) while delivering the lead judgment in Madukolu v. Nkedilim (1962) 1NWLR 589, stated;

“put briefly a court is competent when

  1. The court is properly constituted as regards numbers and qualifications of the members of their bench, and no member is disqualified for one reason or another and
  2. The subject matter of the case is within its jurisdiction, and there is no feature in the case which prevents the court from exercising its jurisdiction and
  3. The case comes before the court initiated by due process of law, and upon fulfillment of a condition precedent to the exercise of jurisdiction. Any defect in competence is fatal, for the proceedings are a nullity, however well conducted and decided: the defect is extrinsic to its adjudication.

On February 8 2023, the Supreme Court suspended the CBN’s deadline following an order challenging the CBN’s directive. This matter revolves around currency and regulation, which falls within the exclusive list of the Federal Government.

In the suit, Kogi, Kaduna and Zamfara urged the Supreme Court to grant an interim injunction stopping the federal government either by itself or through the Central Bank of Nigeria, commercial banks and its agents from effecting the deadline of naira swap. They also challenged the demonetization policy of the federal government on the basis that it is not in accordance with the Nigerian constitution and Section 20(3) of the CBN Act, 2007;

     “(3) Notwithstanding subsections (1) and (2) of this section, the bank shall have power, if directed to do so by the President and after giving reasonable notice on that behalf, to call in any of its notes or coins on payment of the face value thereof and any note or coin with respect to which a notice has been given under this sub-section, shall, on the expiration of the notice, cease to be legal tender, but, subject to the section 22 of this Act, shall be redeemed by the Bank upon demand.”[3]

In other words, the CBN has a mandatory duty to redeem the old notes when presented to them or presented to the bank. The deadline stipulated by the CBN was not feasible. About 3 trillion naira of the old notes in circulation was deposited to the banks; however, less than half a trillion was only made available by the CBN.

The court held that the president failed to meet with the federal executive council to discuss the economic and security implications of the policy and did not have any form of consultation with stakeholders in the Nigerian economy. Although this is not expressly required by the constitution, the Supreme Court opined that such consultations “is inherent in the idea of a federation in a democracy”. The president breached the constitution in the manner he issued the directive banning the old notes from February 10.

Conclusively, the judgment of the Supreme Court has given the citizens hope that the rule of law still applies. In furtherance of the Supreme Court order the CBN disclosed on March 3rd 2023 that the old notes will remain legal tender till December 31st 2023. The decision of the Supreme Court is final and binding on the CBN being an agency of the Federal Government. In a democratic society, when the apex court has decided on an issue of law everybody or entity is bound by it.

What are your views?

[1] Horvath, E. (2022) Why the dark life is not the high life in god, emeryhorvath.com. Available at: https://www.emeryhorvath.com/s9-027-why-the-dark-life-is-not-the-high-life-in-god-podcast/ (Accessed: March 30, 2023).

[2] Tide, T. (2020) Jurisdiction, :::…The Tide News Online:::… Available at: http://www.thetidenewsonline.com/2020/04/08/jurisdiction/ (Accessed: March 30, 2023).

[3] Trustedadmin (2023) The Supreme Court decision on the old naira note and the enforcement, The Trusted Advisors. Top tier Law firm in Lagos Nigeria. Available at: https://trustedadvisorslaw.com/the-supreme-court-decision-on-the-old-naira-note-and-the-enforcement/ (Accessed: March 30, 2023).

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A Power Play: CBN v Supreme Court

By: Ifunanya Denye Anyene

In today’s climate, the most important question on everybody’s mind is who has superior power; the Supreme Court or the Central Bank of Nigerian (CBN)?

Section 287(1) of the 1999 constitution provides that, “the decisions of the Supreme Court shall be enforced in any part of the Federation by all authorities and persons, and by courts with subordinate jurisdiction to that of the Supreme Court.” In short, any ruling by the Supreme Court is final and cannot be varied. But the CBN President seems to think otherwise. So let’s establish the jurisdiction of the Supreme Court.

Essentially, the naira redesign and daily cash withdrawal limit policies falls within the abyss of power of the Central Bank of Nigeria, and only the Federal High Court has constitutional jurisdiction in disputes arising from or related to policies from the Central Bank. Section 251(1) (d) Constitution of the Federal Republic of Nigeria, 1999 provides:

“Notwithstanding anything to the contained in this Constitution and in addition to such other jurisdiction as may be conferred upon it by an Act of the National Assembly, the Federal High Court shall have and exercise jurisdiction to the exclusion of any other court in civil causes and matters — connected with or pertaining to banking, banks, other financial institutions, including any action between one bank and another, any action by or against the Central Bank of Nigeria arising from banking, foreign exchange, coinage, Legal Tender , bills of exchange, letters of credit, promissory notes and other fiscal measures…”.

However, another important question worth acknowledging is whether the ex parte order made by the Supreme Court of Nigeria is binding on the Central Bank of Nigeria? Section 1(3) or the Central Bank Act 2007 provides that the Central Bank of Nigeria “is an independent body in the discharge of its functions”. Further, Section 17 of the CBN Act provides that

“The Bank shall have the sole right of issuing currency notes and coins throughout Nigeria and neither the Federal Government nor any State Government, Local Government other person or authority shall issue currency notes, bank notes or coins or any documents or token payable to bearer on demand being document or token which are likely to pass as legal tender”.

While, within the Nigerian legal framework, the Supreme Court has no jurisdiction over matters pertaining to the CBN, one has to imagine the plight of the average lay man who has now been bombarded with rulings and pronouncements on all fronts (including from the President of Nigeria). So who then do we obey?

I am personally of the opinion that the CBN has supreme power in all matters pertaining to legal tender in the nation, this is because they control the banks; where we save our money, make transactions, withdraw our money, etc. So if we were to listen to any authority on this matter, I submit that the appropriate authority would be the one which has direct controlling power over our means of livelihood. And I believe that is why when the Supreme Court announced that the old naira notes can now be used as legal tender, average Nigerians still traded with the new naira notes and the banks were still refusing to collect old naira notes until a formal pronouncement was made by the CBN reinforcing the Supreme Court’s ruling.

At the end of the day, this is just my opinion, but these are matters pertaining to us as citizens of Nigeria so feel free to discuss your take in the comment section.

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