The High Court of Uganda has ruled against the Uganda Registration Services Bureau (URSB) in a high-profile trademark dispute, finding that the Bureau acted illegally and irrationally when it rejected Afroludo Limited’s application for the “Nyege Nyege International Music Festival” trademark. The court also directed URSB to deregister a rival business name registered in bad faith and grant trademark rights to Afroludo Limited, the rightful owner of the festival brand.
The case arose after Afroludo Limited, which has organized the Nyege Nyege International Music Festival since 2015, applied for trademark registration in July 2019. URSB rejected the application, citing morality concerns, claiming that “Nyege Nyege” could be interpreted as a reference to sexual arousal in Kiswahili slang. However, just one month later, URSB registered the business name “Nyege Nyege Music Festival” under an individual named Eric Nyakueizabo, despite the fact that he had never organized any event under the name.
Afroludo Limited argued that URSB’s actions were inconsistent, unfair, and facilitated fraud, as the Bureau applied different standards for trademark and business name registration while allowing an outsider to benefit from an already well-known brand. The company further accused Nyakueizabo of registering the business name in bad faith, with the sole intent of extorting or blackmailing Afroludo rather than conducting any legitimate business activity.
Court Finds URSB’s Trademark Rejection Unfair and Illogical
In its ruling, the court found that URSB acted irrationally when it rejected Afroludo’s trademark application on moral grounds but later allowed the same phrase to be registered as a business name. Justice Ssekaana Musa criticized the flawed justification URSB relied on, particularly its use of a Google search to determine the meaning of “Nyege Nyege.” The Bureau argued that in Kiswahili slang, the term referred to sexual arousal, making it inappropriate for trademark protection. However, the judge found this reasoning to be misguided, superficial, and culturally insensitive.
Justice Ssekaana ruled that the name should have been analyzed in the local linguistic context where the festival is held, rather than relying on an online slang translation. He noted that in Lusoga and Luganda, the dominant languages in the festival’s home region, “Nyege Nyege” means an irresistible urge to dance and celebrate rather than an immoral phrase. The judge further emphasized that the meaning of words should be assessed in the cultural context in which they are used, not through imported internet slang.
The ruling further highlighted the contradiction in URSB’s decision-making, stating that it was unfair and inconsistent to reject a phrase for a trademark but approve it for a business name. The judge ruled that such double standards amounted to an abuse of discretion and unfair treatment.
Court Declares Rival Business Name Registration Fraudulent
Beyond the irregularities at URSB, the court also found that Nyakueizabo had fraudulently registered the name “Nyege Nyege Music Festival” in an attempt to mislead the public and take advantage of Afroludo’s well-established brand.
The evidence presented in court revealed that Afroludo had been organizing the Nyege Nyege Festival since 2015 and had already gained significant international recognition for its brand. Despite this, Nyakueizabo had never organized any events under the business name he registered. The court found that he only applied for the business name after Afroludo’s trademark was rejected, suggesting an intention to exploit the situation rather than build a legitimate business.
Justice Ssekaana ruled that Nyakueizabo’s actions were misleading and amounted to an attempt to pass off Afroludo’s brand as his own. The court also held that URSB had failed in its duty to prevent fraudulent business name registrations that could mislead the public.
The judge noted that business names should not be registered if they create confusion or falsely imply an association with an existing business. By allowing Nyakueizabo to register the name “Nyege Nyege Music Festival,” URSB enabled deception, and its failure to conduct proper due diligence amounted to negligence.
Court Orders URSB to Restore Festival Rights to Afroludo Limited
Following these findings, the court issued several binding orders to correct the situation. URSB was instructed to immediately deregister Nyakueizabo’s business name, “Nyege Nyege Music Festival.” The court further ruled that Afroludo Limited’s trademark application should be approved and officially registered.
To prevent further confusion, the court also issued a permanent injunction against Nyakueizabo and his agents, barring them from using or making any claims over the name “Nyege Nyege Music Festival.” The ruling ensures that Afroludo retains exclusive legal ownership over the brand.
However, the court declined to officially declare Afroludo as the owner of the business name “Nyege Nyege International Music Festival,” noting that the company had never applied for it separately. Nonetheless, the ruling made it clear that Afroludo is the rightful owner of the festival brand and that URSB’s previous refusal to register its trademark was unlawful.
Although Afroludo was successful in its claim, the court declined to award legal costs to either party, noting that the unique nature of the case required a fair resolution without additional financial penalties.
Implications for Business and Intellectual Property Law
This ruling sets an important legal precedent for trademark protection in Uganda, reinforcing the need for fairness and consistency in intellectual property registration. The decision highlights that regulatory bodies like URSB must apply uniform standards when evaluating business names and trademarks to prevent unfair treatment and fraudulent claims.
The ruling also serves as a warning against opportunistic business registrations that attempt to exploit existing brands. For businesses, the case emphasizes the importance of securing intellectual property rights early to avoid legal disputes.
Future Outlook and Next Steps
URSB has not yet announced whether it will appeal the ruling, but legal experts believe the decision could prompt reforms in how trademarks and business names are handled in Uganda. The case has exposed gaps in URSB’s decision-making process, which may lead to greater scrutiny of future business name registrations.
For Afroludo Limited, the ruling means that it can now proceed with formalizing its trademark registration, solidifying its exclusive legal rights over the Nyege Nyege International Music Festival brand.
As businesses in Uganda take note of this ruling, the case serves as a critical reminder of the risks associated with fraudulent registrations and the legal consequences of misleading business practices.
This decision marks a significant victory for intellectual property protection in Uganda, ensuring that businesses and creative enterprises can safeguard their brands from unfair exploitation.