A single word can spark a legal battle. When Paystack, one of Africa’s leading fintech companies, launched its new product “Zap by Paystack” last month, it triggered a public dispute with Zap Africa, a cryptocurrency startup that claimed prior use of the name. The conflict escalated into a cease-and-desist notice, debates over trademark ownership, and a broader conversation about how African startups navigate intellectual property risks.
At the heart of the clash was a critical question: Who really owns a brand name in Africa’s fragmented trademark landscape? The answer isn’t always straightforward. With multiple registration systems, overlapping jurisdictions, and common terms up for grabs, startups often underestimate the complexities of securing their trademarks — until a dispute forces them to pay attention.
This case offers key lessons for founders: Why due diligence matters, how trademark classifications work, and what steps startups must take to avoid costly conflicts. Whether you’re a fintech in Lagos, an e-commerce platform in Cairo, or a SaaS company in Cape Town, understanding these rules could mean the difference between scaling smoothly and facing a legal roadblock.
The Basics: Name, Logo, and the Nice Classification
A trademark serves to distinguish your goods or services from those of others. It can indeed be a name, a logo, or a combination of both. Think of the iconic swoosh of Nike or the distinctive apple of Apple — these instantly identify the source of the product.
Globally, the majority of countries adhere to the Nice Classification System, an international standard that categorizes goods and services into 45 distinct classes for the purpose of trademark registration. This system ensures uniformity and facilitates international trademark filings. Countries across Africa, including those within the African Regional Intellectual Property Organization (ARIPO) and the Organisation Africaine de la Propriété Intellectuelle (OAPI), largely adopt this system.
Tech-Specific Trademark Classes
For technology companies, certain Nice classes are particularly relevant. These often include:
- Class 9: Covers a wide array of electrical and scientific apparatus, including computer hardware and software, data processing equipment, downloadable software, and mobile applications.
- Class 35: Pertains to business and advertising services, which can be crucial for online platforms and marketing tech.
- Class 38: Deals with telecommunications services, important for internet service providers, communication apps, and related technologies.
- Class 41: Covers education and entertainment, relevant for online learning platforms or entertainment tech.
- Class 42: Encompasses scientific and technological services, as well as design and development of computer hardware and software, data hosting, and cloud computing services.
- Other Relevant Classes: it’s crucial to identify all relevant classes for your specific technology and business model to ensure comprehensive protection.
Independent Protection: Name vs. Logo vs. Combined Mark
Registering a name alone does not automatically protect the logo, and vice versa. A combined mark (name + logo) is also treated as a separate entity. Startups should consider registering all variations to prevent copycats.
Jurisdictional Considerations in Africa: OAPI, ARIPO and National Registries
For African startups, Africa’s intellectual property landscape is shaped by three main trademark systems:
- Organisation Africaine de la Propriété Intellectuelle (OAPI): This organization serves 17 member states, primarily French-speaking West and Central African nations, including Benin, Burkina Faso, Cameroon, Central African Republic, Chad, Comoros, Congo, Côte d’Ivoire, Equatorial Guinea, Gabon, Guinea, Guinea-Bissau, Mali, Mauritania, Niger, Senegal, and Togo. Filing a trademark with OAPI provides protection across all these member states through a single application.
- African Regional Intellectual Property Organization (ARIPO): ARIPO covers a broader geographical area, with 20 member states, predominantly English-speaking and Southern African countries, such as Botswana, Eswatini, Gambia, Ghana, Kenya, Lesotho, Liberia, Malawi, Mozambique, Namibia, Rwanda, São Tomé and Príncipe, Sierra Leone, Somalia, Sudan, Tanzania, Uganda, Zambia, and Zimbabwe. Similar to OAPI, an ARIPO filing can grant protection in multiple member states.
- National Registries: It’s important to note that some African countries are not members of either OAPI or ARIPO and require separate national trademark filings. Nigeria, for instance, where both Paystack and Zap Africa are based, has its own national trademark registry. Other countries like South Africa, Egypt, Tunisia, Ethiopia etc. also require separate filings.
Navigating the International Landscape: The Madrid System
For startups with ambitions beyond their initial operating country, the Madrid System for the International Registration of Marks offers a streamlined approach. This system, administered by the World Intellectual Property Organization (WIPO), allows you to seek trademark protection in multiple countries simultaneously by filing a single application in one language and paying one set of fees. While not all African countries are currently members, it’s a valuable tool for those eyeing expansion into member states.
Priority Rights in Case of Claims
In the event of conflicting trademark claims, the general principle is “first to file” or “first to use”, depending on the specific jurisdiction’s laws. Many African countries follow a “first to file” system, meaning the party who filed the trademark application first generally has priority rights. However, prior use of the trademark in the market can sometimes override a later filing, especially if the prior user can demonstrate significant goodwill and reputation associated with the mark. This is why thorough searching and timely filing are crucial.
The Paystack/Zap Africa situation will likely hinge on who filed for the “Zap” trademark in the relevant classes first, particularly in Nigeria. Paystack’s confidence stems from their claim of prior filing in financial services classes. However, Zap Africa’s prior use and potential brand recognition in the crypto space could also be a factor in a legal dispute. It is also important to note that common terms are harder to monopolize —for example, “Zap” is widely used, weakening exclusive claims.
The Perils of DIY and Inexperienced Consultants
While the allure of cost-cutting might tempt startups to handle trademark matters themselves or rely on generalist consulting firms, this can be a risky approach. Trademark law is complex and varies across jurisdictions. Mistakes in filing, incorrect classification, or inadequate searches can lead to costly legal battles and the potential loss of your brand identity. Engaging experienced intellectual property lawyers who specialize in African markets is a worthwhile investment to ensure your trademarks are properly protected. Legal expertise is non-negotiable for cross-border protection.
Advice for Startups Expanding Across Africa
Startups thinking of expanding across Africa should take the following steps:
- Conduct comprehensive trademark searches: Before launching in any new African market, perform thorough searches in the national trademark registries of those countries, as well as within OAPI and ARIPO databases if the target countries are members.
- Develop a clear trademark strategy: Decide on the core trademarks (name, logo, or both) and identify all the relevant Nice classes for their payment services in each target market.
- Prioritize key markets: If resources are limited, prioritize trademark filings in key expansion markets based on strategic importance.
- Consider regional filings: Explore the possibility of filing through OAPI and ARIPO if expanding into multiple member states of these organizations to streamline the process and potentially reduce costs.
- Engage experienced IP counsel: Partner with intellectual property lawyers who have a proven track record in handling trademark matters across Africa. They can provide expert advice on the best filing strategies, navigate the complexities of different jurisdictions, and represent you in case of any disputes.
- Monitor and enforce your trademarks: Once registered, actively monitor the market for any potential infringements and take appropriate legal action to protect your brand.
