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The Economic tort of passing off: An Overview

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Passing off is a claim in common law that another person is making some false and intentional misrepresentation likely to induce people to believe that his goods or services are those of yours or endorsed by you or connected to you. 

The principle of Passing off seeks to protect the goodwill or reputation of a person and it seeks to prevent others from deceiving the public that the person has endorsed the goods or is related to the goods in order to benefit or have a free ride on that person’s goodwill: Goodwill is a form of legal property that can be protected hence the reason for the common law remedy under passing off for the aggrieved against the defendant. 

Passing off goes hand in hand with the intellectual property rights claim of trademark infringement. According to Section 3 of the Trademark Acts, the claim for damages for infringement of trademark rights can only be brought only by a person who has properly registered the trademark and certificate of trademark obtained but a person whose trademark is unregistered can seek redress under the common law of economic tort of passing off.

Section 3 of the Trademark Act provides thus:

No person shall be entitled to institute any proceeding to prevent, or to recover damages for, the infringement of an unregistered trademark; but nothing in this Act shall be taken to affect rights of action against any person for passing off goods as the goods of another person or the remedies in respect thereof.

To this effect, the Trademark act re-emphasized that though a person who has not registered a trademark cannot bring an action for trademark infringement but the aggrieved person can bring an action under common law for passing off against the defendant. 

Therefore, an action for passing off can come as a common law remedy when an aggrieved person did not register the trademark that has been infringed. 

However, for an aggrieved person to successfully maintain an action for the economic tort of passing off, the aggrieved person must successfully prove these three ingredients to the satisfaction of the court. 

They include; He must prove that: 

  1. He has “goodwill” or a reputation that spanned off his status or class. 
  2. that there is a false and intentional misrepresentation by the defendant. 
  3. Finally, he must prove that he has suffered or is likely to suffer damages by the reason of the misrepresentation by the defendant.

In conclusion, in this period that “trademark” is trending in Nigeria due to some trademark infringement legal brawl, it is pertinent to bring it to the attention of readers that there’s an action called passing off and it goes hand in hand with trademark rights. Passing off is an action brought for damages and to get seek an injunction to stop a person from making some false representation likely to induce people to believe that the goods or services are those of the plaintiff or connected to his person or brand and a person can resort to action for passing off instead of an action for trademark theft or infringement if the person has no registered trademark. 

 

African Development Bank (AFDB) Proposes Industrial Hubs To Make Africa A Manufacturing PowerHouse

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In a bid to make Africa a manufacturing powerhouse, the African Development Bank (AFDB) has proposed that the continental free trade agreement, CFTA, moves beyond trade to industrial manufacturing zones that create jobs for African citizens.

Speaking at the AFDB annual meetings held in Accra Ghana, the President of the Bank Mr. Akinwunmi Adesina suggested that the African region should not just be a trade region, but also a  region where more value-added manufacturing products are traded.

In his words, “I think African Continental free trade (AFCTA) should not just be a trade region, but an industrial manufacturing zone where we trade value-added manufacturing products from national and regional value chains that are competitive globally”.

He stated that the AFCTA should drive the creation of zones that will offer infrastructures, facilities, and incentives that drive manufacturing in the continent as it is done in Asia and South America to create jobs. He further disclosed that the AFDB is working to ensure that Africa transitions to sustainable energy that can drive factories to drive manufacturing. Mr. Akinwunmi revealed that 86 percent of AFDB investments in power generation will go into renewable energy.

This is indeed a highly commendable initiative from Mr. Akinwunmi to help countries on the African continent to tap into the $24billion liquified natural gas project, that will enable the countries in the region to power factories to drive manufacturing. Great to see that they are walking the talk in ensuring that Africa transitions into a manufacturing hub.

Using Nigeria as a case study, over the last years, there have been efforts to make the country the preferred manufacturing hub in West Africa, but such efforts have not produced any tangible results. The Nigerian economy has been badly affected due to the country’s import-dominated commodities.

Although in 2014, the Nigerian Industrial Revolution Plan (NIRP), was launched to make the country the preferred manufacturing hub in West Africa, meanwhile, the initiative was said to have struggled to meet its objectives, as the oil sector still accounted for 65% of the country’s revenue with almost half of the country’s population still living in poverty.

Nigeria for a long time has been ravaged by the high rate of unemployment which has affected the nation’s economy. According to the International Monetary Fund IMF, it suggests that Nigeria needs to create five million jobs per annum over the next 10 years in order to close its unemployment gap.

With the failure of the NIRP plan, it is ideal for the government to implement a new strategy to ensure that the nation becomes a preferred manufacturing hub in West Africa. A close look at developed or developing countries, one will observe that they are establishing industries which have been pivotal to the growth of their economy.

Lack of industrialization will no doubt leave a country underdeveloped. The creation of industries is not just beneficial to the company as it equally benefits the country as a whole. The gross domestic product of any country experiences a significant rise with the introduction of industries into the economy.

That is to say, the more goods that are produced in a country, the more the country’s economy blossoms. Nigeria has been faced with the habit of importation of goods and commodities which is not good for the economy, as it has also devalued the naira.

It’s high time the Nigerian government moves to create industries that will manufacture goods for export, to increase the country’s revenue, and also the high rate of unemployment will be drastically reduced because industrialization necessitates the need for human labor.

IMF Warns That Debt Servicing Might Gulp 100% Of Nigeria’s Revenue By 2026

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The International Monetary Fund (IMF) has warned that debt servicing may gulp 100 percent of Nigeria’s revenue by 2026, if the government fails to implement adequate measures to improve revenue generation.

The IMF’s Resident Representative for Nigeria, Ari Aisen, disclosed this while presenting the Sub-Saharan Africa Regional Economic Outlook report on Monday, 30th May 2022 in Abuja.

According to him, based on a macro-fiscal stress test that was conducted on Nigeria, interest payments on debts may wipe up the country’s entire earnings in the next four years.

Early this year, it was disclosed that the Federal Government (FG) spent N4.2tn on debt servicing between January and November 2021, which represents 76.2 per cent of the N5.51tn revenue generated during the period in question.

The FG reportedly plans to spend N3.61tn on servicing Nigeria’s debt burden in the 2022 fiscal period, which represents about 34 per cent of the 2022 projected revenue of the country.

Nigeria’s debt stock, which is about N39.56tn as of December 2021, is likely to reach N45.95tn following plans by the Debt Management Office (DMO) to borrow an additional N6.39tn to finance the 2022 budget deficit.

Speaking in Abuja, Aisen expressed worry that many African countries, including Nigeria, risked sliding into a critical debt servicing problem unless urgent actions were explored to significantly raise revenue.

Aisen said, “The biggest critical aspect for Nigeria is that we have done a macro-fiscal stress test, and what you observe is the interest payments as a share of revenue and as you see us in terms of the baseline from the federal government of Nigeria, the revenue almost 100 per cent is projected by 2026 to be taken by debt service.

“So, the fiscal space or the amount of revenues that will be needed and this without considering any shock is that most of the revenues of the federal government are now, in fact, 89 per cent and it will continue if nothing is done, to be taken by debt service.

“It is a reflection of the low revenue of the country. The country needs to mobilize more revenue to be able to have macroeconomic stability. It has become an existential issue for Nigeria.”

He further lamented that being an oil exporter, Nigeria was unable to take advantage of the current global high oil prices to build reserves due to the subsidy on petroleum products.

According to him, Nigeria’s subsidy bill would likely hit N6tn by the end of this year at the current monthly subsidy bill of N500bn.

Aisen, however, expressed optimism that the Dangote Refinery would reduce fuel importation when completed, in order to reduce the subsidy burden.

He further warned that soaring food prices and next year’s general elections were threats to the country’s economy.

Aisen said “persisting insecurity, particularly banditry and kidnapping, and the forthcoming 2023 elections may affect the performance of the economy”.

The IMF Rep explained that Nigeria received $3.4bn in Special Drawing Rights and an equal amount in addition to a loan from the Fund, bringing the total loan since 2020 to $6.8bn.

In his remarks, the Director-General of the Budget Office, Ben Akabueze, disagreed with Aisen on his debt service-to-revenue figures, but agreed that Nigeria was spending a significantly high amount on debt servicing.

It’s only a-day old child that would be unaware that Nigeria’s debt profile is rising astronomically on a daily basis, yet no tangible revenue growth to cushion its excruciating effects. This portrays a serious danger to the country, even to a layman’s understanding.

It’s very worrisome that actualizing a surplus budget has become a far-fetched goal in Nigeria’s fiscal system. It suffices to assert that deficit budgets has abruptly and unwittingly emerged as tradition in the country.

Nigeria Customs Signs $3.2bn Digitization Deal

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The Nigeria Customs Service (NCS) and a consortium, Trade Modernization Project Limited, on Monday 30th May 2022, signed a concession agreement worth $3.2bn to digitize operations of the border security and revenue collection outfit.

It was equally reported that the Federal Government of Nigeria expects to generate over $176bn from the deal.

At the agreement signing ceremony held at the Abuja national headquarters of the NCS were representatives of technical and financial partners in the deal, including African Finance Corporation and Huawei Technologies Company Nigeria Limited, a subsidiary of China-based Huawei Technologies Co. Ltd.

The Comptroller General (CG) of the NCS, Col. Hameed Ali (rtd.), in his remarks after the documents were signed, enthused that Nigeria was setting a pace that other African countries were looking forward to follow.

Ali said, “The journey has been long and tortuous, but we thank God that today we have signed the dotted lines. Today, we are happy to say that in Nigeria, we are going to be fully electronic, digitized and modernized. The success of this project will put Nigeria on the map.

“This project is very important in the sense that it has so many benefits that are lined up. The first benefit, which is tangible, is the fact that we are going to garner for this country, $3.5bn.

“To the Nigeria Customs, this is going to change the entire business process. It is going to put the Customs on the best part in terms of doing the business. It would remove all arbitrariness and human mistakes.

“It is a process that would ease the cost of doing business. It is a process that would also assist those of us who were given the task to manage with a simpler process of managing and monitoring.

The CG added, “Let me also underscore the fact that this project, having come this far, is a project that we must support in its entirety. There are rumours that this project is going to weed away officers. Let me allay that fear. We are even in need of officers.

“We have only 15,000 (of them) and by the mission and vision of the management, we will need nothing less than 30,000 people to be able to effectively and efficiently carry out the mandate given to us. So, there is no question of weeding (out) anybody.

The Chairman, Trade Modernization Project Limited, Saleh Ahmadu, who described the event as a ‘momentous occasion’, noted that the deal was a Public-Private Partnership (PPP) arrangement in line with the ICRC guidelines.

Ahmadu stated, “The $3.2bn investments required for the project is already being finalized through an AFC-led initiative. As the concession period begins, we wish to assure Nigerians that the revenue target of $176 billion for the Federal Government will be achieved, if not surpassed.

The Acting Director-General of the Infrastructure Concession Regulatory Commission, Michael Ohiani, noted that the Commission was mandated to regulate all PPPs entered into under the Infrastructure Concession Regulatory Commission Act, 2005.

This was indeed a commendable move as being made by the NCS, but it shouldn’t stop at that. Hence, more actions are henceforth required to follow suit towards realizing the actual goal of the digitization project.

It’s not anymore news that digitization is gradually dominating the formal sector, thus any institution or establishment yet to fully key into its numerous benefits is unequivocally still living in the past.

This therefore signifies that every other agency or body in Nigeria and beyond is expected to emulate this lofty effort for greater productivity.

Welcome Project Champions, Welcome Innovators – Logins Sent for Tekedia Mini-MBA Edition 8

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Dear Sir/Madam,

Greetings! We have sent logins to all incoming Learners for the 8th edition of Tekedia Mini-MBA which begins June 6 to end Sept 3, 2022. If you paid and yet to receive the email, simply go here for a copy of the email. Please complete your setup on time.

The WhatsApp Group link has also been provided in the Board. The live session begins on Saturday, June 11, at 7pm WAT. Prof Ndubuisi Ekekwe, the Lead Faculty, will open the live session. But courses will drop in the Board at 12 noon WAT on Monday, June 6.

Tekedia does not send reminders; so, we encourage you to set personal reminders. Live classes will be held on Saturdays, Tuesdays and Thursdays at 7pm WAT, from June 11 to Sep 3, while pre-recorded courses will drop at 12 noon WAT Mondays, from June 6 to Sept 3.

Also, due to the massive interest, we have picked a date (July 16, more details in the Board as we get closer) for the Live portion of one of the new special sessions. Tekedia Institute announced last week that it would offer a special session on Satellite Internet in Nigeria, Africa – Business and Career Opportunities when news broke that Starlink has been approved by Nigerian regulators. A Texas-based company with Elon Musk’s Starlink license will co-teach the course with a US-based satellite industry analyst. A veteran of the Nigerian telco sector will provide a roadmap on broadband service delivery as a case study.

More so, the Central Bank of Nigeria recently released guidelines on Open Banking; Tekedia Institute is offering a course on that. The organization which played a major role for this initiative will teach the course.

We continue to receive registrations for Tekedia Mini-MBA edition 8 and other Tekedia Institute’s programs here. Help me and forward this email, lol; we want everyone in this edition with all the new courses.

Tekedia Team