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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.
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