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Safaricom Sued for allegedly Stealing Blaze idea,Did they also steal Mpesa?


PART ONE from Seasoned Journalist and Lawyer Wahome Thuku
TRANSCEND MEDIA GROUP v SAFARICOM LTD
WITH MORE THAN 22.2 million subscribers, Safaricom is the leading mobile phone service provider in this region.
TRANSCEND MEDIA GROUP (TMG) on the other hand is one of the top communication and advertising firms in Kenya and the East African region. The company is affiliated to Inter Public Group of Companies (IPG) which comprises of McCann Worldgroup and Mullen Lowe
Apparently, there has been no love lost between Safaricom and TMG but things reached a crescendo early this year over a business relationship. The full-scale legal battle at the Magistrate Court and High Court at Milimani, Nairobi is anchored on a multi-million youth campaign project dabbed Blaze Kenya, a product to help the youth be in control of their finances and to succeed in various fields
TMG claims to have designed the concept now used by their rivals, after poaching their (TMG) staff involved in putting it together. That is the cracks of the matter. And it’s a matter that the mainstream media has opted to keep out of their pages and airwaves for fear of possible commercial repercussions.
JANUARY 2016
In January 2016, Safaricom decided to bring in a second agent to provide its Creative and Digital Services. The agent was to undertake the implementation of Blaze brand.
On January 25, Safaricom send emails to 8 “prequalified” communication and advertising companies inviting their bids for the job.
The bidders were required to conceptualize and develop a Communication Strategy and Creation, targeting the youth market segment. According to Safaricom, the youth (60% of Kenya’s population) are their investment for future returns.
TMG embarked on preparing the material. Four TMG employees were heavily involved in the project. These were:
Thomas Omanga – Client Service Director who led the Safaricom pitch
Tom Timla Tieng Wango – Senior Art Director
Brian Oyugi – Designer
Christine Muchendu – Accounts Director
FEBRUARY
ON February 12, TMG submitted their bid to Safaricom under four titles:- Tribe Digital, Hack it, Next Nation and Safcom 2.0
On January 17, TGM was invited to make presentations to Safaricon’s Evaluation Panel. Shortly after, the panel toured their offices on a due diligence mission.
MARCH
On March 1, Flora Mangala the Safaricom’s Category Sourcing Manager sent an email to TMG inviting them to make the presentation the following day, to Safaricom’s Executive Committee comprising of CEO Bob Collymore, Director of Consumer Business Sylvia Mulinge among others.
On Wednesday, March 2, in Ndovu Boardroom at Safaricom Hq, TMG made the 45-minute presentation. Those present for TMG were the CEO Anthony Gatheca, Executive Chairman of McCann World Group Africa Fraser Lamb, the Media Brands managing director Brad Smale, the TMG’s Executive Creative Director John Kiarie, Mr Omanga and TMG director Lai Muthoka.
MEANWHILE to safeguard their intellectual Property interest, TMG applied to the Kenya Copyright Board for the registration of the concepts under the four titles: Kenya Speaks Safaricom, Youth Assets Communication Strategy, Digital Tribe and Shangwe Sato. They were issued with Registration Certificate on May 10.
By then, several developments had taken place.
Safaricom finally shortlisted 3 companies – TMG, Brainwave Communications and Saracen Media Ltd – for the final pitch.
APRIL
On April 1, Safaricom signed a two-year contract with Saracen Media for implementation of the Blaze project to run up to March 31, 2018 with an annual retainer of Ksh104,367,168.
On April 4 Omanga and Timla resigned from TMG. Omanga had been hired by TMG on November 4, 2013 on basic salary of Ksh500,000 while Timla was employed in September 2012 on a salary of Ksh245,000.
On April 13, Christine resigned from TMG as Account Manager. The following day (14th), Brian Oyugi resigned as Designer.
On April 15, Safaricom’s Emily Too informed TMG that their bid was unsuccessful. She however could not disclose the winning company according to Mr Lai.
On April 16, Saracen Media carried an advert in the newspapers confirming they had hired Omanga as Head of Strategy and Timla as Creative Director
WHAT happened thereafter was an interesting corporate drama (to be continued)

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