MTN has been accused of stealing the intellectual property of MobiRes, a company the African operator has worked closely with for more than two years.
The fallout has come after MTN invited companies last month to submit proposals for the MTN Travel Solution, which will provide an e-ticketing solution for mass and emerging markets.
MobiRes has been working with MTN since May 2010 and MTN Traveller was launched in November 2010, when Fraser Gregg, managing director of MobiRes, was part of the presentation to journalists.
Now, Gregg has told the Sunday Times they have appointed lawyers in preparation for action, but said “the huge disparity in the parties’ financial resources will prejudice our legal battle to protect our rights”.
Gregg added MTN’s actions “most certainly infringe and contravene the non-disclosure agreement and most certainly infringe on MobiRes’s intellectual property”.
He said MobiRes had “introduced, conceptualised, designed and developed” the mobile travel solution to MTN.
In MTN’s current proposals they say they are looking for a supplier for a booking reservation system allowing users to buy tickets for transport and accommodation services in South Africa on their mobile.
Responding to the allegations Fusi Mokoena, general manager of commercial legal at MTN South Africa, said: “MobiRes was engaged for a period of two years, after which period MobiRes has not delivered any product that we could deem ready to market and/or for commercial use.
“Surely MTN cannot be expected to be bogged down in that relationship. MTN believes there are similar solutions in the market and there are other players in the market, therefore MTN is entitled to invite other players to showcase products that respond to customer needs.”
