Bangbet in trademark dispute, says it has lost millions

A row over multi-million-shilling betting firm Bangbet’s trademark has landed in court.

The row has sucked in several individuals and companies, including foreigners, in a case pending in the High Court in Nairobi.

Rabow Company Limited initiated the suit against Lucky Bus DMCC, Afreeken Technology Limited, Kaplan and Stratton Advocates, the Registrar of Trademarks, Safaricom PLC and Registrar of Companies.

Others named in the suit include Kexian Xiao, Ge Li, Hang Ming, Jacinta Moraa, Purity Njeri, Hongdon Chen, Xu Pengfei and Hanmeng Qui.

The Betting Control and Licencing Board has been listed as an interested party.

The case awaits a ruling for two applications by the parties before Justice Alfred Mabeya.

Last Friday, Justice Mabeya deferred it to a later date saying the ruling will be delivered on notice. The matter had come before the judge for a ruling.

Rabow Company Limited Director Anne Kinyugo, through lawyer Kipruto David, claims Lucky Bus DMCC and Afreeken Technology Limited fraudulently and unlawfully infringed on its registered trademark Bangbet by publishing, promoting, and advertising printing and displaying betting services under the trademark without a licence.

“The 1st and 2nd respondents (Lucky Bus DMCC and Afreeken Technology Limited respectively) actions have misled and misrepresented to the plaintiffs (Rabow Company Limited) clients, the general public, and the betting community through fraud and illegal access to the plaintiffs are betting platform and trademark Bangbet,” read the suit in part.

Rabow Company Limited claims Afreeken Technology and Lucky Bus DMCC have made the betting community believe Bangbet is owned by Afreeken Technology Limited causing it significant harm and loss.

Afreeken Technology Limited, as per the suit, unlawfully changed its registered name at the Registrar of Companies from Afreeken Limited to Bangbet Limited deliberately impersonating the Rabow Company Limited brand.

Rabow Company claims Afreeken Technology Limited orchestrated the fraudulent assignment of its trademark without its consent.

It claims Lucky Bus DMCC in conjunction with Afreeken Technology Limited illegally and fraudulently took control of its platform including unauthorized access to the system, money wallet, and M-Pesa paybill hence denying it access to the betting platform.

Rabow Company Limited said Lucky Bus DMCC, Afreeken Technology Limited, Kexian Xiao and Hanmeng Qui, through their servants, have illegally and fraudulently transferred over Sh49,977,830 from its M-Pesa paybill numbers 999880 and 937552 and online wallet on the system to themselves.

Rabow director in the court papers claim Kexian fraudulently transferred Sh4,576,739 and another Sh4,647,589 through his two mobile phone numbers.

Li, through his mobile number, according to Rabow, transferred Sh14,310,000, Pengfei allegedly transferred Sh9.1 million, Moraa transferred Sh1.6 million, Njeri Sh2.160 million and Chen transferred Sh4,649,002. The director said the alleged illegal transfer of funds caused the company substantial financial harm and threatened its business.

“I wish to state that the 3rd, 4th and 5th (Kaplan and Stratton Advocates, Registrar of Trademarks and Safaricom PLC) defendant, failed to exercise the requisite due diligence in verifying the authenticity and legality of the documents used to fraudulently assign the Plaintiff’s trademark, which actions have occasioned the Plaintiff immense losses,” stated Rabows director.

She noted that Kaplan and Stratton Advocates had already confirmed that they never received instructions from Rabow to assign the trademark to Afreeken Technology Limited thereby underscoring the fraudulent and unlawful nature of the Defendants’ actions.

The company said Lucky Bus DMCC and Afreeken have continued trading under the trademark Bangbet without necessary permission leading to a loss of Sh2 million.

It noted that on July 19, 2024, the Betting Control and Licencing Board informed it that Afreeken Technology was claiming ownership of its licensed trademark based on a purported assignment.

Rabow said it promptly responded, clearly stating that it had not authorized or assigned the trademark to Afreeken Technology Limited.

The Betting Control and Licencing Board according to Rabow confirmed that the rightful user of the trademark was Rabow and subsequently advised Safaricom to suspend the Afreeken paybill that was being used in Bangbet.

Rabow Company Limited raises the fear that its betting client who deposited their money in the betting platform wallet will be defrauded. 

The directors of Lucky Bus DMCC, Xiao, Li, Ming, Chen, Pengfei, and Qui, according to Rabow, being foreigners are likely to leave the country in an attempt to evade justice making it difficult to recover and control the platform.

“The plaintiff has reported the matter at Kilimani Police Station under OB No19/27/8/2024 and ongoing investigations by the Directorate of Criminal Investigations. In the meantime, the 7th defendant (Xiao) has been charged at Kibera Law court where he has refused to comply with summons to attend court resulting in warrants of arrest being issued,” read the suit in part.

Court papers further indicate Xiao, Li, Ming, Moraa, Njeri, Chen, Pengfei, and Qui are still at large, evading arrest but continue to infringe on Rabow’s trademark and defraud unsuspecting clients from the online betting platform.

Kaplan and Stratton Advocates objected to the suit. The law firm stated that Lucky Bus DMCC has not given its consent for the release of any confidential correspondence.

Xiao, a resident of the United Arab Emirates, has also opposed the application saying it is premised on falsehood.

Xiao denies the claim of illegal transfer of money and instead states that those listed are people who carry out betting activities on the platform and who were able to place multiple bets and were able to win.

Xiao said Afreeken Technology Limited changed its name to Bangbet on the strength of the license agreement it entered with Lucky Bus DMCC for the limited right use.

He said in Kenya, Lucky Bus DMCC enlisted Rabow as its proxy under which it has been carrying out business for many years under the trade name Bangbet. 

Upon dismissal Rabow Company Limited moved to the High Court and filed an application, Lucky Bus DMCC also filed an application claiming that they acquired the trademark through a deed of an assignment.

But Rabow in their application said the deed of assignment is fraudulent and wants the court to order a rectification and expunging of the fraudulent entry.