•Pevans East Africa is the entity behind SportPesa in Kenya.
•SGHL owns the European and Tanzania gaming businesses.
A Milimani commercial court has issued an order restraining UK-based Sportpesa Global Holdings Limited from using the Sportpesa trademark.
Justice Dorah Chepkwony restrained Milestone and SGHL from using the Sportpesa trademark pending hearing and determination of the application filed by Asenath Wachera.
Wachera, a local shareholder of Pevans East Africa Limited, told the court the trademark was unlawfully assigned to SGHL.
Pevans East Africa is the entity behind SportPesa in Kenya.
SGHL owns the European and Tanzania gaming businesses.
The two share directors and shareholders, but have since fallen out after Ronald Karauri signed an agreement transferring the brand to SGHL.
Wachera in documents filed before the court said Karauri sold the brand for Sh14 million without the approval of Pevans shareholders.
She has a shareholding of 210 ordinary shares out of 1,000 allotted ordinary shares at Pevans.
Karauri has 70 and Robert Macharia has 30.
Other Kenyan shareholders are Paul Ndung'u with 170 ordinary shares Leadwood Holdings with 30, Francis Waweru with 10 and Peter Muiruri with 10 ordinary shares.
The court documents showed, in a letter dated September 9 2020, that Macharia submitted to the Registrar of trademarks the disputed deed and other forms for registering the purported agreement of Pevans trademark Sportpesa.
“Macharia apparently signed the said letter in the capacity of director of SGHL despite the fact that he has never been a director of the company as alleged,” the documents said.
Wachera said Macharia, who never held a valid appointment as an agent of SGHL, fraudulently and irregularly appointed himself as the agent of SGHL as borne on some documents.
He then proceeded to lodge the application for registration of Pevans trademark Sportpesa in favour of SGHL.
The documents show the registrar of trademarks issued the certificate of registration.
SGHL subsequently stated that Milestone games limited were granted a non-exclusive license over the trademark Sportpesa for five years with effect from October 26, 2020.
Asenath said Milestone is actively run by Karauri and Macharia. It is beneficially owned by Karauri through third party companies.
“They have irregularly and fraudulently asserted ownership of Pevans assets comprising the Sportpesa trademark,” she said.
She said Pevans trademark Sportpesa has been unlawfully transferred to third party companies to the disadvantage of Pevans.
Chepkwony directed the case to be heard on May 31.
Milestone, according to the court documents has been using Pevans trademark Sportpesa in marketing and operating its business of betting, gaming and lotteries to the disadvantage of Pevans.
This was after Milestone was issued with a non-exclusive license.
Karauri and Macharia have been accused of trafficking the trademark and breaching their duty of loyalty and fidelity to Pevans, which duty obliges them to act in good faith and in the best interests of Pevans.
Edited by Kiilu Damaris