A local prominent coffee exporter, Mullege Plc, lost a fierce trade name court battle at the Federal High Court against Muleg Oil Importer, when the presiding judge ruled that both companies can use the similar trade name.

The lubricant and petroleum products importer Muleg Oil and Mullege Plc have been in court for the last 12 months after the latter initiated a case at the former Ministry of Trade . In its claim, Mullege Plc requested that the oil importer change or alter its trade name, since it is similar to the claimant's trade name.

After reviewing the case, the Ministry revoked Muleg Oil's business license on March 23, 2018. Displeased with the ministry’s administrative action, the five-year-old oil importer took the case to the Federal High Court on March 30, 2018, requesting a reversal of the ruling. In its appeal, the oil company argued that its name cannot be identical with the defendant as it contains the term 'Oil Importer' in the trade name.

"Even when we secured our business license, the Ministry provid[ed] us with the license [after]checking [that] the company's trade name does not overlap with others," reads Muleg's appeal. "Even if the names are similar, it cannot affect either of the companies, as we operate in different business lines."

Mullege Plc, in its preliminary objection, claimed that the case should have been reviewed by an administrative tribunal not a judicial court, citing the nature of the issue.

The court rejected the preliminary objections of Mullege and proceeded to review their statement of defence.

In its statement of defence, the defendant, Mullege Plc, claimed that it has obtained the license as a general importer and can engage in the import of oil. Mullege Plc continued to argue that the business of the two companies could overlap as it, too, can engage in petroleum import and distribution. It also argued that the names of two companies are identical in the Amharic language, sharing the same three letters and sound.

The other co-defendant, the Ministry, filed a similar statement of defence as Mullege Plc, asserting that Mullege Plc can engage in the petroleum import business just like the plaintiff company. The Ministry also asserted that it has revoked Muleg Oil's license, since Mullege Plc obtained the trade name and has prior use of it.