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The Audiovisual Rights Society of Nigeria (AVRS) has the statutory right to license hotels and other business establishments for the public use of audiovisual works (movies and films) transmitted within their premises via Pay-TV subscriptions. This ruling is a landmark ruling that strengthens the creative ecosystem and reaffirms the rights of Nigerian copyright holders.
Reiz Continental Hotel Limited filed a case against AVRS, arguing that it could not be forced to pay copyright fees for audiovisual content (movies and films) that it could access through subscription-based broadcasting. The court, presided over by Honourable Justice Egwuatu, dismissed the case.
The Court ruled in a landmark decision on Thursday, July 24, 2024, that AVRS had proven the legality of its licensing activities and was able to grant copyright licenses to users of its audiovisual works, including the Plaintiff (by Reiz Continental Hotel Limited), because it was an authorized collective management organization (CMO) under Section 88 of the Copyright Act 2022 and assignee of copyright in a number of audiovisual works.
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The Reiz Continental Hotel’s arguments that it was not subject to any AVRS license because it was only a recipient of transmissions from a paid subscription television service were dismissed by the court. The court determined that the Reiz Continental Hotel, which operates a profit-driven hospitality business and owns multiple television sets that broadcast audiovisual content, violated sections 11(b), (c), and (f) of the Copyright Act with regard to AVRS’s rights. Additionally, the Court determined that Reiz Continental Hotel’s transmission of audiovisual works violated section 36(1)(a) and (g) of the Copyright Act, unless authorized by AVRS, because it was done in the course of business.
Reiz is a member of the Hotel Owners Forum Abuja (HOFA), and the court ruled that Reiz was bound by its participation in a collective licensing agreement. This prevented Reiz from contesting the legality of the agreement with AVRS.
In addition to being a legal win for AVRS and its members, this important ruling also serves as a strong testament to Nigeria’s dedication to defending copyright laws and fostering innovation. For copyright enforcement in the hospitality industry and other commercial users of protected information, it sets a solid precedent.
Speaking about the ruling, Mike O. Akpan, Esq., principal partner at Alpha-Edge Legal and legal counsel to AVRS, said:
“The ruling rendered by the Federal High Court in Abuja marks a critical turning point in Nigeria’s implementation of copyright legislation. It sheds light on a long-standing controversy in the hotel and video industries: that proper license is necessary for the commercial use of copyrighted video content, whether through pay-TV or other channels.
AVRS Chairman Mr. Mahmood Ali-Balogun expressed his joy by saying:
This ruling represents a significant milestone for AVRS members. It guarantees the legal protection of copyright holders in the film industry and upholds the validity of our collective licensing system. It fortifies the basis on which the creative economy can expand and draw capital.
