Richard Wanambwa
1 November 2009
Kampala
Uganda's leading telecommunications company, MTN, has rejected claims contained in a suit filed against it alleging breach of confidence in relation to use of mobile phone software.
The suit that presents a test case for the way business is done in today's information technology age pits the firm against a one Mr Collins Musinguzi who says he introduced MTN to what he says was a new technology. Mr Musinguzi suggests in his suit that MTN would later go on to apply software similar to what he had proposed without compensating him.
It is not clear whether Mr Musinguzi entered into any contractual relationship with MTN at the time he says he was in contact with the telecommunications company although the gentleman's lawyers are hinting on the fact that his intellectual rights were infringed upon.
"We act for and on behalf of our client M/S Byte Legion Technologies on whose stern instructions we inform as follows, our client approached you with a proposal for the development of an SMS based brokerage content provision system. Your company thrives on intellectual property and as such it has an obligation to protect and help nurture developers of such intellectual property. Your company should not be seen as denying thinkers of their right to commercially benefit from their ideas," court papers filed by Lubega, Mwebaza &Co Advocates on behalf of the plaintiff read.
According to Mr Musinguzi, MTN implemented a proposal similar to one he had earlier submitted to them for development of an SMS based brokerage content provision system.
SMS based brokerage content provision system is a mobile market place for buyers and sellers of anything. For instance if you wanted to buy or sell a house, you SMS any mobile phone provider and you do business.
Mr Musinguzi says while his proposal was not carried through it in its original form, MTN later launched a similar product with an uncanny resemblance to what he had proposed.
Mr Musinguzi has now filed a civil suit in the Commercial Court demanding Shs75 million as compensation from MTN. According to court documents seen by Sunday Monitor, in July 2007, Mr Collins Musinguzi , the Managing Director of Byte Legion Technologies introduced the concept to Mr Dennis Musinguzi of MTN's business marketing department.
Mr Musinguzi holds that he was made to understand that MTN would do business with him because his proposal was a good one, a claim the company has disputed.
However, before they could launch the product, MTN reportedly asked Mr Musinguzi to pay Shs2 million as installation fees for a leased line and SMPTP port which he paid.
But in September 2008, Mr Musinguzi awaited for the conclusion of a formal agreement with MTN to start the proposed business without success after MTN wrote informing him that the said business be put on hold until 2009. Instead, MTN launched Google SMS Trade, a product which has the same technical specifications as Mr Musinguzi's proposal and it was launched without informing Mr Musinguzi.
Details of the suit say: "We thus inform you that putting Google SMS Trade on the market without informing our client of such intention was in total breach of confidential information that was passed on to you by our client. We therefore demand that you pay our client Shs75 million being the loss it (company) has suffered from such a breach."
But MTN on September 22, through Mr Anthony Katamba, general manager, legal and corporate affairs, wrote back dismissing the allegations that there was a breach of anyone's confidence.
"We have evaluated your claim alleging that MTN breached your client's confidence with regard to a proposal he submitted. MTN Uganda denies all allegations made in your claim, and any liability to your client. You state that your client sent a proposal to MTN, and have attached a copy of the proposal and an email between your client and an MTN official. However, the information does not indicate that a relationship, and or comment(s) were established. It is therefore evident that MTN Uganda did not have a contractual relationship with your client," a letter from Lubega, Mwebaza and Company Advocates reads.
It continues, "We further advise that prior art in relation to the Google product already existed, all over the world such as in Kenya, Bangladesh, Ghana, with products such as Google Base and other products , accordingly the idea as presented by your client's proposal was and still is not novel or unique.
In light of the above, we view your client's claims as false, baseless and frivolous and advise that you cease and desist from any further claims and false allegations against MTN Uganda. MTN Uganda is ready to defend any suit at your client's cost and inconvenience should you persist," reads the letter signed by Mr Katamba.
Mr Isaac Nsereko, MTN's Chief Marketing Officer said "I am not aware of the case and I am not going to comment, please talk to Anthony Katamba."
Mr Katamba was not picking our calls by press time.
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