The news 

• Kenya’s High Court has dismissed an intellectual property lawsuit against Safaricom regarding its reverse call service.
• Safaricom has previously faced legal challenges concerning its technological services, including M-PESA and alleged data breaches.
• The case highlights the difficulties African innovators encounter in protecting their intellectual property within existing legal frameworks.

Kenya’s High Court recently dismissed a lawsuit against Safaricom over its reverse call service, a feature allowing callers to transfer call costs to recipients by dialling ‘#’ followed by the recipient’s number.

The plaintiff, a Kenyan innovator, alleged that Safaricom had infringed upon his intellectual property rights by implementing this service without his consent. However, the court ruled in favour of Safaricom, stating that the plaintiff failed to prove ownership of the reverse call concept.

This case brings to light the ongoing challenges African innovators face in protecting their intellectual property. Safaricom, as a leading telecommunications company in Kenya, has previously encountered legal disputes related to its technological advancements.

Safaricom’s flagship mobile money service, M-PESA, has been both lauded for financial inclusion and criticised for its market dominance.

In 2013, the Bill and Melinda Gates Foundation highlighted concerns over M-PESA’s high transaction costs, especially affecting low-income users. The foundation noted that a $1.50 transfer cost $0.30 in Kenya, whereas in neighbouring Tanzania, where more competition existed, the fees were significantly lower.

Additionally, studies sponsored by USAID found that uneducated customers were often subjected to opaque pricing and unnecessary services, leading to rapid depletion of their M-PESA deposits.

The dismissal of the reverse call lawsuit highlights the complexities surrounding intellectual property (IP) rights enforcement in Kenya’s tech sector. Innovators often struggle to protect their ideas due to inadequate legal frameworks and the rapid pace of technological advancements. This environment can discourage individual inventors from pursuing legal action against larger corporations, fearing protracted legal battles with uncertain outcomes.

Moreover, the case highlights the necessity for clear and robust IP laws that can adapt to the unique challenges posed by technological innovations. Without such frameworks, disputes between innovators and corporations are likely to persist, potentially stifling creativity and the development of homegrown solutions.

Safaricom’s victory in this lawsuit allows the company to continue offering the reverse call service without legal hindrance.

However, the recurring legal challenges emphasise the need for the company to engage proactively with local innovators and ensure that its services do not infringe upon existing intellectual property rights. Such engagement could foster a more collaborative environment, promoting innovation and trust within Kenya’s tech ecosystem.