kenya:Safaricom loses first round of M-Shwari row with Faulu

BUSINESSDAILYAFRICA

December 24,2012

 

 IN SUMMARY

  • Faulu Kenya last week accused the mobile service provider of copying its idea and is asking the court to stop Safaricom from using M-Shwari.
  • Safaricom had objected to dispute being heard in the High Court and instead wants it handled by Industrial Property Tribunal.
  • Following the ruling, Faulu made a fresh application seeking to stop Safaricom from using the M-Shwari service saying it is now a disputed product and its continued use would disadvantage it.

 

Faulu claims that it developed a cash advance service in 2011. The service would be operated on the mobile telephony platform and customers would be able to apply for, receive and make payments through a mobile telephone network.

It states that it is already using the product in partnership with Airtel under the brand name Kopa Chapaa cash advance services, which it says has already been approved by the Central Bank of Kenya.

Faulu alleges that it had proposed to Safaricom to enter into a partnership with it to offer the service through M-Pesa and presented to it a concept paper with details of the proposed service.

The microfinance firm also accuses Safaricom of breaching a non-disclosure agreement they had signed and contravening its trade secrets and copyright by offering M-Shwari.

However, the mobile service provider has denied the claim.

Faulu claims that it developed a cash advance service in 2011. The service would be operated on the mobile telephony platform and customers would be able to apply for, receive and make payments through a mobile telephone network.

It states that it is already using the product in partnership with Airtel under the brand name Kopa Chapaa cash advance services, which it says has already been approved by the Central Bank of Kenya.

Faulu alleges that it had proposed to Safaricom to enter into a partnership with it to offer the service through M-Pesa and presented to it a concept paper with details of the proposed service.

The microfinance firm also accuses Safaricom of breaching a non-disclosure agreement they had signed and contravening its trade secrets and copyright by offering M-Shwari.

However, the mobile service provider has denied the claim.

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