Beyond CAC: Why Nigerian Startups Fail to Protect Their IP

Business setup in Nigeria is no small deal, from raising capital to understanding government regulations; it’s one headache for entrepreneurs. But one key area where most startups fail is in the protection of intellectual property.

Think of investing years in building a distinctive brand, only to wake up and find somebody using your business name. Or worse, a competitor copying with impunity an innovative idea. This is what happens all too often in Nigeria, where IP laws exist but enforcement is largely weak.

How then can ideas, brands, and innovations developed by startups in Nigeria be protected from day one? This post breaks it down.

Understanding Intellectual Property in Nigeria

Generally described, intellectual property simply refers to the creations of the mind- ideas, inventions, brands, content, and processes that give a business its competitive advantage. In Nigeria, IP can be broadly classified into four categories, namely:

1. Trademarks: covers business name, logo, slogan, or anything that differentiates your brand.

2. Copyrights: covers written works, music, films, software, and designs.

3. Patents: Give the inventor exclusive rights for new products, technologies, or business methods.

4. Trade Secrets: These are secret formulas, processes, or methods of doing business that give your company an advantage.

Any of these assets can be stolen or misused if not legally protected. In real life, many entrepreneurs in Nigeria do not appreciate the role of IP rights until it is too late.

How Nigerian Startups Can Protect Their IP from Day One

1. Register Your Business Name and Trademark.

The name in itself will not grant you an exclusive use. Most startups in Nigeria think that the moment one has registered a business with the Corporate Affairs Commission, CAC, the name is protected. Well, all that means is that no other person can register a company with that name; it does not mean stopping the use of the name for marketing and branding.

What to Do:

Enquire if anyone has registered your brand name under the Federal Ministry of Industry, Trade and Investment at the Nigerian Trademarks, Patents and Designs Registry.

Apply for a trademark in respect to such business name or logo, or slogan.

The business should consider going online by creating a domain name and creating and verifying social media handles.

A registered trademark would accord an entity rights against third-party uses of its brand identity.

2. Copyrighting Your Creative Works

Should your start-up be based on creation, such as and not limited to,bobookssoftware, music, film, and design, such shall be copyrighted. In Nigeria, copyright arises upon creation. Still, for total evidence in proof at law in title over such work, it will always be advised that such work be registered by a person at the Nigerian Copyright Commission.

Why Important:

Copyright registration often makes the process of proving ownership in cases of dispute easier.

It gives you the sole rights to reproduce, distribute, and profit from your work.

You can sue someone for copyright infringement if they use your work without permission.

For startups dealing in software, mobile applications, and digital content development, applying for copyright protection is very important to avoid losing the originality of your work to competitors.

3. Patent Your Invention

Your application for a patent is very important if your startup is developing something new, like a product, technology, or process. What a patent does is prevent any other person from making, using, or selling your invention without your permission, and this holds for up to 20 years.

How to Get a Patent in Nigeria:

Ensure your invention is new, non-obvious, and useful.

Apply for a patent at the Nigerian Trademarks, Patents, and Designs Registry.

Consult with a patent attorney who can help navigate the legal process.

Patents are complex and costly; however, this is usually one of those must-haves that have to be in place to enjoy a competitive advantage in tech, engineering, and manufacturing startups.

4. Protect Your Ideas Using NDAs and Contracts

In my opinion, the greatest mistake entrepreneurs are making today in Nigeria is discussing their business idea freely. It is essential to use a Non-Disclosure Agreement (NDA) contract to legally cover your secrets while pitching investors, hiring employees, or consulting partners. The best practices end:

Have investors, employees, and partners sign an NDA before discussing business plans.

Provide IP ownership in employment contracts; whatever work is created for your company should legally be your company’s property.

Offer work-for-hire agreements when someone outsources their work; if the work applies to software development, branding, or building content, this belongs to himthemter completion of the work.

These legal guardrails prevent conflict and make sure the business retains its intellectual property as well.

5. Police and Enforce Your IP Rights

It is important to note that protecting your IP is not just about registration; you have to police and enforce your rights. So many businesses in Nigeria are losing their IP by doing absolutely nothing when people infringe on their brand or ideas.

How to Keep Being Vigilant:

Periodically search the Nigerian Trademarks and Patents Registry for similar registrations.

Social media, e-commerce platforms, and competitor monitoring for trademark or copyright infringements.

In the case of theft of brand or invention, write a cease-and-desist letter or sue the entity.

IP enforcement in Nigeria is quite a headache, but proper documentation strengthens your case in court.

6. Consider International IP Protection

If ever you would want to expand outside Nigeria, then you would seek international IP protection. A trademark and patent registration in Nigeria will not offer protection outside of the country. The moment your brand name is registered or your invention abroad, you lose control.

What You Can Do:

Apply for an international trademark under the Madrid Protocol for brand protection covering more than one country.

If your invention has a global potential, you may apply for a PCT patent.

If you will be exporting, make sure you check the IP laws of the countries you intend to export to.

Many Nigerian startups fail to think globally until it’s too late; don’t make that mistake.

Final Thoughts: Protect Your Business Before It’s Too Late

Intellectual property theft is a fact in Nigeria and on the increase. From fake products to stolen business names, down to stolen innovations, too many entrepreneurs have watched in agony as years of work are whisked away due to a lack of securing it legally.

Key Takeaways for Nigerian Startups:

Register your business name AND trademark it; just a CAC registration is not enough.

Copyright your creative works, especially for digital products, music, and content. File for a patent for inventions if it’s an innovative startup; get exclusive rights for it.

Make use of the NDAs and contracts- never share an idea without protection through the law.

Monitoring and enforcement- stay alert and ready should there be an infringement of any kind on your IP rights.

If you have global expansion plans, then protect your IP outside Nigeria.

IP protection is no longer a luxury; it’s a necessity. Do not wait until someone copies your brand or steals an idea from you. From day one, create a legally protected business that is bound to grow through Nigeria and beyond.

Your ideas are your biggest assets; protect and guide them jealously!

See post: https://ilorinbizchronicle.com/from-clicks-to-courtrooms-the-hidden-hurdles-of-nigerian-e-commerce/