The Legal Framework for Licensing Music and Film in Nigeria: A Comparative Analysis

 

Written by Tomisin Farinola, Fawaz Adediran & Kabir Adeyemo, Esq

 

1.0 Introduction

Nigeria’s creative industry is a vibrant environment filled with music and film that has garnered international acclaim. Nollywood, the country’s film sector, stands as the world’s second-largest in terms of volume, producing over 2,500 films annually and contributing roughly around 2.3% to Nigeria’s Gross Domestic Product (GDP). Similarly, the Nigerian music scene, propelled by genres like Afrobeats, has seen artists such as Burna Boy, Wizkid, Rema and Davido achieve global recognition, influencing music trends worldwide.

Central to the success and sustainability of these industries is the concept of licensing. Licensing serves as a legal mechanism that grants creators control over how their work is used, ensuring they receive due compensation. This protection not only safeguards the rights of artists but also encourages further innovation and investment in the creative sectors.

This article aims to provide a comparative analysis of the legal frameworks governing music and film licensing in Nigeria. By examining the existing laws and regulations, we seek to understand how they impact the protection of intellectual property and the promotion of growth within these pivotal industries.

2.0 Understanding Licensing in the Creative Industry

Licensing in the creative industry, particularly in music and film, is a fundamental process that ensures creators maintain control over their work while enabling others to use these creations under defined conditions. At its core, licensing involves granting permission by the copyright owner to a third party, allowing them to use the protected work for specific purposes. This mechanism not only safeguards the rights of creators but also facilitates the dissemination and monetization of creative content. In the music industry, licensing serves multiple purposes. It allows artists to monetize their compositions by permitting their use in various media outlets, such as films, TV shows, commercials, and video games. These agreements specify the terms and conditions under which the music can be utilized, ensuring that creators receive appropriate compensation and recognition.

Similarly, in the film sector, licensing is crucial for incorporating existing music into visual content. Filmmakers often seek permission to use songs or instrumental pieces to enhance storytelling, evoke emotions, or establish a particular atmosphere. Without proper licensing, the unauthorized use of music can lead to legal disputes and financial penalties, underscoring the importance of this process in upholding intellectual property rights.

2.1 There are several types of licenses in the music and film industries, each serving a unique function:

1. Public Performance License: This license is required whenever music is played in public settings, whether it’s live or recorded. This includes venues like concerts, restaurants, clubs, and even radio stations. Organizations such as Performing Rights Organizations (PROs) manage these licenses, ensuring that creators are compensated when their music is publicly performed. Examples of these PROs are BMI, ASCAP, SESAC, IMRO, PRS for Music, COSON and many others. As a Creator, you can only be registered with one PRO. If you intend to switch to another PRO, you must terminate your existing subscription with the existing PRO.

2. Synchronization License (Sync License): A synchronization license is necessary when music is paired with visual media. This applies to movies, TV shows, commercials, online videos and video games. The license grants permission to synchronize a musical piece with visual elements, allowing creators to control how their work is used in conjunction with other media.

3. Mechanical License: This license is needed for reproducing and distributing music, whether through physical copies like CDs or digital downloads. It ensures that composers are compensated for the reproduction of their work. Artists and record labels typically obtain mechanical licenses when they cover songs or distribute music in various formats.

4. Master License: A master license grants the right to use a specific recorded version of a song. It’s often paired with a synchronization license, especially when a particular recording is integral to a visual project. This license is essential for those who wish to use a specific rendition of a musical work in their productions.

2.2 The licensing process involves several key stakeholders, which include:

1. Creators: This group includes songwriters, composers, and filmmakers who produce original content. They hold the initial rights to their creations and decide how their work can be used by others.

2. Producers: Producers oversee the development and distribution of creative works. In music, this might involve managing recording sessions and guiding the artistic direction of a project. In film, producers handle various aspects of production, from financing to post-production.

3. Licensing Bodies: Organizations such as Performing Rights Organizations (PROs) and music publishers manage the rights of creators. They issue licenses, collect royalties, and ensure that creators are compensated when their work is used. These entities play a crucial role in the administration of rights and the enforcement of licensing agreements.

4. Users:  Users are individuals or entities that seek to incorporate existing creative works into their own projects. This group includes filmmakers, advertisers, and businesses that use music or film content to enhance their products or services.

It is essential for all parties involved to understand the vital roles each has to play to prevent the culmination of legal disputes that might arise from copyright infringement. This ensures that creators are fairly compensated, users can legally and ethically incorporate existing works into their projects, and the industry as a whole can continue to thrive through the respectful and lawful use of intellectual property.

2.3 Important Legal Considerations for Licensing Agreements

When drafting licensing agreements in the creative industry, several key legal considerations are essential to ensure clarity and protect the interests of all parties involved. It is crucial to define the scope of the license clearly. This involves specifying which rights are being granted, such as reproduction or distribution rights, and detailing any limitations regarding usage, duration, and geographical area. A well-defined scope prevents misunderstandings and potential legal disputes.

In music, it is very important to clear the existing song intended to be used according to the use. Where a filmmaker intends to use the song in a film, the master use and synchronization license must be obtained. The master use is a clearance with the original owner of the song while synchronization license is the clearance with the composers of the song i.e the songwriters.

Another important aspect is addressing intellectual property rights and discussions of exclusivity clauses. The agreement should clearly state who retains ownership of the intellectual property and outline any permissions or restrictions related to its use. This clarity helps prevent future conflicts over ownership and usage rights. Payment terms and royalty structures must also be meticulously detailed. The agreement should specify how and when payments will be made, including any advance payments, royalties, or profit-sharing arrangements. Transparent financial terms ensure that both parties have a clear understanding of the compensation involved.

Furthermore, termination conditions are another critical consideration. The agreement should outline the circumstances under which the license can be terminated by either party, including any notice requirements and the effects of termination on the rights and obligations of both parties. Lastly, it’s essential to establish governing law and dispute resolution mechanisms. A well-drafted licensing agreement should aptly specify which relevant jurisdiction’s laws will apply and also outline the methods for resolving any disputes that may arise, whether through mediation, arbitration, or litigation, as the case may be.

As a point worthy of emphasis, professionalism and strict adherence to the law must be in place for all parties involved. This is to understand the vital roles each has to play to prevent the culmination of legal disputes that might arise from copyright infringement. Notably, by following the law and acting professionally, creators are fairly compensated, users can legally and ethically incorporate existing works into their projects, and the industry as a whole can continue to thrive through the respectful and lawful use of intellectual property.

3.0 Legal Framework for Music Licensing in Nigeria

The legal framework for music licensing in Nigeria is an essential aspect of intellectual property law designed to ensure that creators are rewarded for their creative efforts. This framework is built on various legislations, regulatory measures, and licensing systems that work together to provide an environment that encourages creativity while safeguarding the rights of authors and composers.

The Copyright Act of 2022 is the primary legislation governing music licensing in Nigeria. This Act repealed the earlier Copyright Act, Cap C28, Laws of the Federation of Nigeria, 2004, to reflect the changing needs of the creative industry and align Nigeria’s copyright laws with global standards. Section 1 of the Copyright Act of 2022 provides the objectives of the law, which include protecting the rights of authors to ensure just rewards and recognition for their intellectual efforts, facilitating access to creative works through appropriate limitations and exceptions, and enabling Nigeria’s compliance with international copyright treaties. Section 1 of the Act states:

“The objectives of this Act are to—
(a) protect the rights of authors to ensure just rewards and recognition for their intellectual efforts;
(b) provide appropriate limitations and exceptions to guarantee access to creative works;
(c) facilitate Nigeria’s compliance with obligations arising from relevant international copyright treaties and conventions; and
(d) enhance the capacity of the Nigerian Copyright Commission for effective regulation, administration, and enforcement of the provisions of this Act.”

Additionally, Section 30 of the Copyright Act goes into detail about the operationality of licensing and how it should work in Nigeria. First, it speaks to transferability of copyrights by means of licensing or assignment under Section 30(1). It states thus:

For the purpose of Chapter 4 of the Constitution of the Federal Republic of Nigeria 1999, copyright shall be deemed to be movable property and shall be transferable by way of assignment, testamentary disposition or operation of the law.

For creatives, the most important subsection to take note of is the provision of Section 30(3) which reiterates the need for a written agreement.

An assignment of copyright or an exclusive licence to do an act, the doing of which is controlled by copyright, shall have no effect unless it is in writing.

The Nigerian Copyright Commission (NCC) is the regulatory body responsible for enforcing the provisions of the Copyright Act. The NCC administers several regulations aimed at ensuring compliance with the law, such as the Nigerian Copyright e-Registration System (NCeRS), which provides an online platform for creators to register their works and protect their intellectual property.

The Copyright (Collective Management Organisations) Regulations 2007 is another critical regulatory framework issued by the NCC to guide the operation of Collective Management Organisations (CMOs) like Musical Copyright Society Nigeria (MCSN).

These CMOs are essential players in bridging the gap between music creators and the usage of their works in public. They also manage the rights of copyright owners and facilitate the licensing of music for commercial use.

3.1 Licensing Agencies for Music

In Nigeria, the licensing of music is primarily managed by Collective Management Organisations (CMOs). CMOs are organizations established by copyright owners to collectively manage their rights, especially where individual management would be impractical. Under the Copyright Act of 2022, CMOs are recognized as essential entities that represent the interests of music creators, publishers, and performers.

The two prominent CMOs in Nigeria are the Copyright Society of Nigeria (COSON) and the Musical Copyright Society Nigeria (MCSN). COSON is widely regarded as one of the most active CMOs, and it manages the rights of music composers, publishers, and other stakeholders by granting licenses to users and collecting royalties on their behalf. Similarly, MCSN also plays a significant role in the music licensing ecosystem by providing businesses and organizations with licenses to use copyrighted music. These licenses grant the legal right to use music in public performances, broadcasts, or digital platforms while ensuring that creators are adequately compensated for their work.

The Act gives the Nigerian Copyright Commission (NCC) the authority to authorize the formation of a CMO and oversee its operations. According to the Act, no individual or corporate entity may carry out the responsibilities of a CMO without the NCC’s consent. Additionally, if found guilty, any individual or corporate entity that operates or acts in the capacity of a CMO without the NCC’s approval faces a minimum fine of N1,000,000, a minimum five-year jail sentence, or both. For a corporate entity, the penalty is at least N5,000,000. In cases where multiple CMOs are to receive payment on behalf of the copyright owner of the sound recording, the CMOs involved must decide which of them will do so; if not, the NCC may make specific instructions.

3.2 Challenges in Music Licensing

Music licensing in Nigeria faces a variety of challenges that hinder the effectiveness of the system and the ability of creators to fully benefit from their intellectual property rights. One of the most significant issues is the enforcement of rights.
Despite the existence of laws and regulatory bodies, the unauthorized use of music, commonly known as piracy, remains rampant. This widespread infringement reduces the potential earnings of creators and weakens the incentive to produce high-quality content. Efforts to curb piracy often face resistance due to inadequate enforcement mechanisms, lack of resources, and low public awareness of copyright laws.

Another critical challenge lies in the collection and distribution of royalties. CMOs are tasked with collecting royalties on behalf of their members, but the process is often fraught with inefficiencies. Problems such as a lack of transparency in how royalties are calculated and distributed, limited data on music usage, and delays in disbursing payments create distrust among rights holders. Many creators feel that they do not receive a fair share of the revenue generated from their works, which undermines the credibility of the licensing system. Additionally, many Creators are not aware of the existence of these local CMOs because of lack of sensitization in the community of creators.

Public awareness is another area of concern. Many users of music, including business owners, event organizers, and content creators, are unaware of the need to obtain licenses for public performances or other uses of music. This ignorance leads to widespread non-compliance, either intentionally or unintentionally, further depriving creators of their rightful earnings. Public education campaigns are crucial to bridge this gap and ensure that users understand their obligations under the copyright laws.

The rise of digital platforms and technological advancements has introduced new complexities to music licensing. Streaming services, online downloads, and other digital distribution channels have fundamentally changed how music is consumed. However, the licensing models have not fully adapted to these changes, leading to gaps in regulation and enforcement. Digital platforms often operate across borders, making it difficult to monitor and collect royalties for Nigerian creators. The absence of robust technological tools to track the usage of music further exacerbates the problem.

The legal framework, although updated with the Copyright Act of 2022, still requires continuous adaptation to address emerging challenges. The rapid evolution of the global music industry necessitates frequent reviews of the law to incorporate best practices and new licensing models. Without such updates, the Nigerian music industry risks falling behind its global counterparts.

4.0 Legal Framework for Film Licensing in Nigeria

Nigeria’s film industry, often referred to as Nollywood, is one of the largest in the world. To ensure that films are produced, distributed, and exhibited in a manner that aligns with national values and legal standards, the country has established a comprehensive legal framework. This framework is primarily built upon the Nigerian Copyright Act and the National Film and Video Censors Board (NFVCB) Act. The Nigerian Copyright Act serves as the cornerstone for protecting intellectual property rights in the country. This Act ensures that creators of original works, including films, have exclusive rights to their creations, thereby promoting creativity and safeguarding against unauthorized use.

The Act outlines the types of works eligible for copyright protection and specifies the rights granted to creators.
In addition to the Copyright Act, the National Film and Video Censors Board Act was enacted to regulate the film and video industry in Nigeria. This Act led to the establishment of the NFVCB, a body responsible for overseeing the censorship and public exhibition of films and video works. According to Section 1(1) of the Act:

“There is hereby established a body to be known as the National Film and Video Censors Board (in this Act referred to as ‘the Board’) which shall be a body corporate.”

The Act grants the NFVCB the authority to classify films and videos, ensuring that content aligns with Nigeria’s cultural norms and legal standards. This classification process is crucial for guiding audiences and protecting vulnerable groups from potentially harmful content. In relation to the subject matter, Section 2(a) of the Act empowers the National Film and Video Censors Board to license, listed as thus:

It shall be the duty of the Board- To licence (i) A person to exhibit films and video works; (ii) A premises for the purposes of exhibiting films and video work.

4.1. Licensing Agencies and Their Roles

The National Film and Video Censors Board (NFVCB) plays a pivotal role in the licensing process within Nigeria’s film industry. As mandated by the NFVCB Act, the Board is responsible for the censorship and classification of films and video works intended for distribution and exhibition in the country. Before any film can be publicly exhibited or distributed, it must receive approval from the NFVCB. This process involves a thorough review to ensure that the content adheres to Nigeria’s moral, cultural, and legal standards.
Beyond content classification, the NFVCB also issues licenses to distributors and exhibitors. This regulatory function ensures that all parties involved in the film distribution chain operate within the confines of the law, maintaining the integrity of the industry and protecting consumers from unapproved or substandard content.

4.2 Challenges associated with Film Licensing

Despite the extant legal framework, Nigeria’s film industry faces several challenges in the realm of licensing. One of the most pressing issues is piracy. Unauthorized reproduction and distribution of films significantly undermine the revenue of legitimate creators and distributors. This rampant piracy not only discourages investment in the industry but also affects the quality of productions, as returns on investments become uncertain.

Compliance with censorship laws is also a significant concern. Filmmakers must navigate the delicate balance between creative expression and adherence to the NFVCB’s guidelines. Content deemed inappropriate or offensive can be censored or banned, leading to potential financial losses and stifling creativity. The subjective nature of censorship decisions can sometimes lead to disputes and calls for clearer guidelines.
Once again, digital platforms and streaming services has transformed how films are distributed and consumed. However, existing regulations may not adequately cover these new modes of distribution, leading to gaps in licensing and enforcement. This evolution necessitates continuous updates to the legal framework to keep pace with technological changes.

Furthermore, there is a lack of awareness among some filmmakers and distributors regarding the licensing requirements. This ignorance can lead to unintentional non-compliance, resulting in penalties or bans. Continuous education and outreach by regulatory bodies are essential to ensure that all stakeholders understand and adhere to the established guidelines.

5.0 Comparative Analysis: Music v. Film Licensing in Nigeria under the Copyright Act 2022

Generally, the Nigerian Copyright Commission whose enabling Act is the Copyright Act, 2022 is the general legislation that regulate musical and audiovisual work (also known as film) in Nigeria. The provision of section 9 of the Copyright Act, 2022 provides the nature of copyright in literal and musical works while section 11 of the Act provides for the nature of copyright in audiovisual works. The following further analyzes the similarities and differences between Music and Film Licensing in Nigeria.

5.1 Similarities Between Music and Film Licensing

1. Copyright Protection
Both musical and audiovisual work (film) are works eligible for copyright Act, as provided by section 2 of the Copyright Act, 2022. Most especially, both enjoy protection by the Act in respect to the production, reproduction, distribution or publication of the work to the public for commercial purpose.

2. Exclusive Rights
Subject to the exemptions specified in Part II of the Copyright Act, 2022. Owners of music or film shall have the exclusive right to reproduce the work; publish the work; perform the work in public; produce, reproduce, perform or publish any translation of the work.

Furthermore, An owner of a film shall broadcast the audiovisual work, make any copy of the sound track of an audiovisual work; make the work available to the public by wire or wireless means in such a way that members of the public are able to access the work from a place and at a time independently chosen by them; distribute to the public, for commercial purposes, copies of the work, through sale or other transfer of ownership provided the work has not been subject to distribution authorised by the owner; make an adaptation of the audiovisual work; make a translation of the audiovisual work or any part ; and do in relation to a translation or an adaptation of the work.

While an owner of a musical work can also transfer exclusive or non-exclusive rights, authorisation or permission to another person, permitting them to reproduce, publish, perform, make translations or adaptations, broadcast or distribute a musical composition or sound recording for commercial purpose, usually for a period of time.

3. Collective Management Organizations (CMOs)

Collective Management Organizations (CMOs) as the name implies are organizations that act collectively on behalf of the rights holders they represent. They can represent various rights and rights holders in many creative sectors, such as music, audiovisual, book and journal publishing, and the visual arts. CMOs are non-profit organizations governed by the rules agreed to by their members, any applicable copyright law, and other laws and regulations. An example of CMO that regulate music licensing is the Copyright Society of Nigeria (COSON). Similarly, the CMO that regulate film licensing involves organizations such as the Audio-Visual Rights Society of Nigeria (AVRS).

4. Moral Rights

A creator of a musical and audio visual work is entitled to moral rights, including the right to claim authorship of his work, in particular that his authorship be indicated in connection with any of the acts referred to in sections 9, 10 and 11 of the Copyright Act, except when the work is incidentally or accidentally included in a broadcast when reporting current events; and object and to seek relief in connection with any distortion, mutilation or other modification of, and any other derogatory action in relation to his work, where such action would be or is prejudicial to his honour or reputation.

5. Penalties for Infringement

Both musical and audiovisual work prohibits any person who sells, lets for hire or for the purposes of trade or business, exposes or offers for sale any infringing copy of a work, distributes for the purposes of trade or business any infringing copy of a work, has in his possession other than for his private or domestic use, any infringing copy of a work, or has in his possession, sells, lets for hire or distributes for the purposes of trade or business or exposes or offers for sale or hire any copy of a work which if it had been made in Nigeria would be an infringing copy, commits an offence andis liable on conviction to a fine of at least N10,000 for every copy dealt with in contravention of this section or imprisonment for a term of at least three years or both. A creator of a musical or audiovisual work is also entitled to remedies like injunctions, damages, and criminal sanctions.

5.2 Differences Between Music and Film Licensing

The following explains key differences between music licensing and film licensing in Nigeria.

1. Nature of Work
Music licensing involves sound recordings and musical compositions as defined under Section 9 and 12 of the Copyright Act, 2022. The provision of section 12 of the Copyright Act, 2022 further provides that “copyright in a sound recording shall be the exclusive right to do and authorise the doing of any of the following act — (a) reproduce the sound recording ; (b) broadcast the sound recording; (c) communicate the sound recording to the public; (d) make the sound recording available to the public by wire or wireless means in such a way that members of the public are able to access the sound recording from a place and at a time independently chosen by them; (e) distribute to the public for commercial purposes, copies of the sound recording, either by way of rental, lease, hire, loan or similar arrangement ; or (f) distribute to the public, for commercial purposes, copies of the work, through sale or other transfer of ownership provided the work has not been subject to distribution authorised by the owner.

While Film licensing covers audiovisual works, which includes moving images, with or without accompanying sound, which is capable of being shown as a moving picture by means of a mechanical, electronic or other device and irrespective of the nature of the material on which the visual images and sounds are carried and includes the sound track, but does not include a broadcast; as provided under section 108 of the Copyright Act, 2022.

2. Licensing Rights and Processes
Music licensing includes specific rights such as;

• Master License and Mechanical License: A master license is granted by the owner of the musical work in a sound recording to another person who intends to commercially exploit the sound recording. Sometimes, the artiste owns the rights in the masters but usually, these rights over masters are signed off by the initial copyright owner to the Record label in perpetuity or until the record label is able to recoup its expenses and investment in the artiste.
• Synchronisation License: This licensor grants a licensee the right to synchronise the musical composition with visual media. For instance, where a movie, video game, or TV commercial is to be made using the composition, a synchronization license will be required
• Broadcast or Performance License: This type of musical license is granted to the licensee to enable them to perform, stream, record or play the sound recording in public via radio, television, in concerts, or at parties. Usually, the services of Collective Management Organisations (CMOs) like COSON and MCSN, are employed to grant, negotiate, administer, and recover performance licenses and royalties, respectively.
• Print License: After the Licensee has been issued the aforementioned license, the licensee is granted the rights to transcribe or print physical copies of musical notes or lyrics of the musical work and distribute same. Whereas, Film licensing focuses on

Distribution Rights:

These rights include distribution to the public, for commercial purposes, copies of the work, through sale or other transfer of ownership provided the work has not been subject to distribution authorised by the owner.
Public Screening Right: This right enables the owner of an audiovisual work to display his work to the public for commercial purpose or any such other purposes as the law may specify.

Adaptation Rights

Adaptation means the modification of a pre-existing work from one type of work to another or altering a work within the same type to make it suitable for different conditions of exploitation and may also involve altering the composition of the work. Therefore, an owner of a film or audiovisual work can alter and modify a preexisting work to make it suitable for different conditions of exploitation.

3. Collective Management Organizations (CMO)

The licensing of a musical work and sound recording is often managed by Copyright Society of Nigeria (COSON) or Musical Copyright Society of Nigeria (MCSN) that oversee the collection of royalties for songwriters, composers, and publishers.

On the other hand, Film licensing is handled by the Audio-Visual Rights Society of Nigeria (AVRS), which manages the licensing of public performance and broadcasting rights for film producers. Additionally, the National Film and Video Censors Board Act and the National Film and Video Censors Board Regulation regulate the production of audiovisual work in Nigeria.

4. Scope of Rights

The licensing of musical work applies only to audio elements, including compositions and sound recordings. While the film license encompasses both audio and visual elements, providing rights over the combination of sounds, images, and their sequences.

6.0 The Applicable Laws And Regulators Regulating Music And Film In The Nigeria

• Entertainment Industry

Nigeria is not lacking in laws and regulations for the film industry. There are several federal and State legislations, statutory regulations and guidelines that govern music, film production, licensing and distribution in Nigeria. These include but are not limited to the following;

1. The Constitution of The Federal Republic of Nigeria 1999 (as amended)
2. Copyright Act, 2022
3. National Film and Video Censors Board Act, Cap N40, Law of the Federation of Nigeria (“LFN”), 2004
4. National Film and Video Censors Board Regulation, 2008.
5. The Companies and Allied Matters Act, 2020 (as amended).
6. Finance Act, 2021.
7. Trade Disputes Act, Cap T8 LFN, 2004
8. Employee’s Compensation Act, 2010
9. Nigerian Immigration Act, 2015
10. Nigerian Immigration Regulations, 2017
11. Nigeria Investment Promotion Commission Act, Cap N108, LFN, 2004.
12. Companies Income Tax Act, Cap C1 LFN, 2004
13. The Labour Act, Cap L1 LFN, 2004.
14. Personal Income Tax (Amendment) Act 2011
15. Patents and Designs Act, Cap P2 LFN, 2004
16. Trademarks Act, Cap T13 LFN, 2004
17. Stamp Duties Act, Cap S8 LFN, 2004
18. Trade Malpractices (Miscellaneous Offences), Cap T12 LFN, 2004
19. The various State and Local Government Film laws and Regulations.

The following are the Regulators relevant to the music, film production, licensing, and distribution in Nigeria:

1. The Federal and State Ministries of Information and Culture
2. Copyright Society of Nigeria (COSON)
3. Musical Copyright Society of Nigeria (MCSN)
4. National Film and Video Censors Board (NFVCB)
5. State Film and Video Censors Boards
6. Audio-Visual Rights Society of Nigeria (AVRS)
7. Corporate Affairs Commission (CAC)
8. Nigerian Copyright Commission (NCC)
9. Nigerian Investment Promotion Commission (NIPC)
10. Trademark, Patent and Design Registry
11. Federal Inland Revenue Service (FIRS).
12. Nigerian Immigration Service (NIS)
13. Nigerian Communication Commission (NCC)

7.0 Lessons from International Best Practices (a case study of the United States of America)

The United States is the most innovative music culture in the world, the legal framework surrounding the licensing of music is ancient. Prior to the enactment of the United States Music Modernization Act of 2018 (MMA). The Copyright Act 1790 was the first to regulate this area of law in the United States. As technology advances, there was a need to establish a Music Modernization Act to modernise copyright-related issues for music, audio recordings due to new forms of technology. In simpler terms, the Act looked to improve how music licensing and royalties would be paid in consideration of streaming media services. The Act aims at creating a blanket license for digital music providers to make permanent downloads, limited downloads and interactive streams. The Act also establishes a collective to administer the blanket license and makes various improvements to royalty rate proceedings.
Flowing from the United States Music Modernization Act, there are lessons that Nigeria can learn from to improve the Music Industry in Nigeria. The following briefly explains how the U.S Modernization Act of 2018 is shaping their entertainment industry.
The consolidation of rights in sound recordings into a single comprehensive database. This helped in shaping the entertainment industry in U.S in a way that it enable those wanting to make commercial use of a sound recording to know who the owner of the song is, and who is entitled to the payment of royalties. This helps to ensure that there are no hiding clauses in the payment of royalties to music and sound owners.
The invention of digital services such as Spotify and Amazon music will be able to obtain a blanket mechanical license for musical compositions. This blanket license will enable digital services to play songs without the risk of legal action being taken against them for copyright infringement. The new Mechanical Licensing Cooperative will also benefit from the statutory license fees paid by digital services to the collective. These license fees are distributed to songwriters and publishers.

The enactment of the Act is advantageous to songwriters and publishers because it enables them to receive proper payment for their creativity. The Act better allows for songwriters and publishers to track who uses their compositions but does not compensate them. Also, unclaimed royalties that are rightly due to industry professionals will be kept for three years by the Mechanical Licensing Collective.
Therefore, Nigeria needs a Music and Film Modernization Act to meet the advancement of technology in the world.

8.0 Conclusion and Recommendations

This article has examined the overview of the creative industry in Nigeria, with emphasis on music and film. It further explained the importance of licensing in protecting intellectual property (IP) and promoting industry growth while analyzing the legal frameworks for licensing music and film in Nigeria. It explored the definition and purpose of licensing in music and film, types of licenses in the music and film industry (e.g., public performance, synchronization, distribution rights).

Additionally, the article explained the key stakeholders in the licensing process (e.g., creators, producers, licensing bodies, and users), key similarities and differences between musical and audiovisual licensing and finally lessons from international best practices using the United States of America as a case study.

Recommendations
Nigeria’s music and film industry has made significant strides in recent years with music and films grossing high numbers and streaming globally, yet there’s always room for improvement. As a Nation, we need more investments into the entertainment sector in order to empower the underground creative with little or no resource. Nigeria needs to strengthen its copyright protection and enforcement. This includes amending the Copyright Act to address issues of digital piracy and establish specialized Copyright Tribunals for efficient resolution of disputes in the entertainment industry.

Also, the appropriate authorities need to facilitate access to funding and incentives. This can be achieved by enacting a legislation providing tax incentives and grants for creative projects to encourage investment in the industry. Also, a stricter regulations for CMOs need to enforced to ensure transparency and fair distribution of royalties to artists.

It is also recommended that a centralized platform should be developed where users and creators can easily obtain licenses from various rights holders thereby simplifying the process and reducing administrative burdens. There should also be symposiums, workshops, or partnership with educational institutions to provide comprehensive education on copyright laws, licensing procedures and best practices for using music legally.

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13. Section 30 (1) of the Nigerian Copyright Act, 2022.
14. Section 30 (3) of the Nigerian Copyright Act, 2022.
15.  Adeoluwa Ademola and Shalewa Akinde, “Licensing And Royalty Collection In The Nigerian Music Industry”, (20 December, 2023). <https://www.mondaq.com/nigeria/copyright/1402774/licensing-and-royalty-collection-in-the-nigerian-music-industry?>
16. Dr Wale Adedeji, Copyright policy and the Nigerian music industry in the era of digitalisation, (2023). Journal of Legal Anthropology, Volume 7, Issue 2, Winter 2023: 13–41. <https://doi.org/10.3167/jla.2023.070202>
17. Ibid (15).
18. Adegbite, Aderonke and Oyekanmi, Olorunfemi Adewale, Legal Framework for Music Licensing and Protection of Creatives in the Nigerian Music Industry (December 12, 2022). <https://ssrn.com/abstract=4303993>
19. Section 1(1) of National Film and Video Censors Board Act.
20. Section 11 (d),(e),(f),(g),(h),(I) of the Copyright Act, 2022
21. Section 9 of the Copyright Act, 2022, In CBS Songs Ltd v. Amstrad Plc (1988) A.C. 1013 HL, an “authorisation” has been described as the grant or purported grant, which may be express or implied, of the right to do the act complained of, whether the intention is that the grantee should do the act on his own account, or only on account of the grantor. Similarly, in the earlier case of Falcon v. Famous Players film Co. [1926] 2 K.B. 474 at 499, the English Courts defined “authorise” as “sanction, approve or countenance.”
22. Section 14(1)(a)&(b) of the Copyright Act, 2022
23. Section 44(2)(a),(b),(c),&(d) of the Copyright Act, 2022..Aluko Oluwasegun Samson, “Licensing as a Tool for Curbing Piracy in Nigerian Copyright Industry” (October 2008), a Long Essay submitted to the Faculty of Law, Obafemi Awolowo University in partial fulfilment of the LL. B (Hons) Degree.
24. Rory P.Q, “How Music Royalties Work” (30th March 2020) available on <https://iconcollective.edu/how-music-royalties-work/> accessed 29th September 2020.
25. Section 11(g) of the Copyright Act, 2022