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Butter Importer Accuses Rivals of Unfair Competition

     
 
 
 
 















 

   

A Yemeni exporter of vegetable butter, Sheno Lega, and its local partners have taken a business grievance against East Africa Holdings and three individuals to the federal Trade Practice Investigation Commission, claiming that the defendants are engaged in unfair competition.
 

The exporter, Hayel Saee Anam & Co., and its local partners submitted revised charges to the Commission on July 13.
 

The Commission was established in 2004 and is presided over by Hareka Haroye, former minister of Justice.  The case entered is its 33rd. The Commission has judicial power to hear business disputes, initiate investigations and pass enforceable rulings. It is a government arm created to fight monopolistic market behavior and punish those it finds practicing unfair competition.
 

It has ruled over 14 cases since it began operation in February 2005.

 

This latest case involves the importation and distribution of various brands of edible butter: Sheno Lega from Yemen, Sheger Lega from Singapour, Welaita Kibe from Malaysia and Jeldu Kibe from Egypt. 
 

The Yemeni exporter claims that its competitors use Sheno Lega‘s trademark packaging technique, wrapping the butter with a leaf of false banana, when they import and distribute their competing products. As a result, it claims, they deliberately confused consumers.
 

Hayel Saee Anam & Co. registered the trademark for Sheno Lega at the Ministry of Trade and Industry in June 2003.
 

The exporter’s local representatives claim that the company has spent one million Birr building brand awareness in the Ethiopian market.

 

Although the original charge was brought against East Africa Holdings, one of the largest domestic trading houses in the country, and two retailers, Hayel Saee Anam & Co. had to reframe it following a verdict by Commissioner Hareka who decided that those charged in connection with the Welaita Kibe and Jeldu Kibe brands should not only be the retailers, but the importers as well.
 

In the later charge, the plaintiff requested that it should be initially awarded 600,000 Br until it can calculate the total loss incurred due to alleged unfair competition. It has also appealed to the Commission to suspend the marketing of the competing brands in Ethiopia.
 

All the brands in question are made from palm tree. Various importers from far eastern and Arab countries imported about 15,000 vegetable butter and oil products in 2004.  
 

The Commission has adjourned the case until August 4, 2006, to allow the defendants time to respond to the allegation.

By ISSAYAS MEKURIA
FORTUNE STAFF WRITER

 
 

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