Tuesday, 21 February 2017

Chijioke Ifeoma Okorie

Nigeria's approved society of collectors still limited, for the time being

Does an exclusive licensee of copyright works [Musical Copyright Society of Nigeria Limited] have the right to exercise property rights in such works outside of and notwithstanding the provisions of Sections 17 and 39 of Copyright Act 2004, which requires the approval of the Respondent [Nigerian Copyright Commission] before one can act as collecting society?

This is the principal question that the Court of Appeal was asked in the case of Musical Copyright Society of Nigeria Limited v. Nigeria Copyright Commission CA/L/575/2009 decided late last year. As readers will recall, this is just the latest in a series of attempts by the Musical Copyright Society to secure the approval of the Copyright Commission to become a collecting society. See here and here.


The facts of the case are straightforward. Musical Copyright Society of Nigeria Limited (MCSN) applied to the Federal High Court (the court of first instance) for declaratory reliefs in the main that by virtue of the fundamental rights guaranteed under the Constitution, it does not require a license from the Respondent to carry on the activities of a collecting society.

That application, dismissed at first instance, was also dismissed on appeal, essentially on the ground that the application was made under the wrong procedure and, therefore, the court had no jurisdiction to entertain the application in the first place. The procedure in question was the application made under the Fundamental Human Right Enforcement Procedure Rules 1979, made strictly to be used when the main relief is the enforcement of the rights stated under Chapter IV of the Constitution. 

Issues raised on appeal

In his lead judgment, Justice Uzo I. Ndukwe-Anyanwu identified the issue of the competency of the appeal and 3 other issues raised by the parties. While the learned Justice answered the question of the competency of the appeal finding the appeal incompetent, he declined to resolve the other 3 questions raised by the parties stating that resolving the issues “would just be a mere academic jamboree”. [Page 34]

The three questions raised were:

Is intellectual property within the meaning of moveable or immovable property referred to and protected by the 1999 Constitution or the African Charter of Human and People’s Rights

MCSN argued that insofar as Section 11 of the Copyright Act referred to copyright as a moveable property, copyright falls within the property referred to and protected by the Constitution. The Nigerian Copyright Commission (NCC) conceded that copyright was indeed moveable property but the assignee or licensee of copyright does not own property rights within the contemplation of Section 44 of the Constitution [pages 16 – 17].

Can an entity [MCSN] negotiate licenses and collect and distribute royalties in respect of copyright works without the approval of the Copyright Commission
The contention of MCSN was that the Commission’s approval was not required to enjoy copyright in musical works seeing as it acquired the exclusive licenses prior to the commencement of the Copyright Act. The Commission argued that in so far as MCSN was an association of copyright owners and had the objective of negotiating and granting licenses and royalty collection and distribution, it was a collecting society and required the Commission’s approval to legally act.

Does the requirement of seeking the Commission’s approval to carry on as a collecting society offend the provisions of the Constitution regarding freedom to form associations and control property?
MCSN’s reasons for asserting that the requirement for approval was unconstitutional was that such requirement deprived it of the right to freedom of association as guaranteed under the Constitution. The Commission was of the opinion that such requirement was not a denial of right but a procedure to the acquisition and enjoyment of right.

While the court made no pronouncement on the said 3 issues, it did manage to indicate that questions of requirements for approval to act as collecting society are not questions of fundamental rights infringement of collective-society-hopefuls. Copyright licensees have no right to sue for infringement of fundamental human rights relating to the subject matter of their license. It is sufficient to note that the Court rejected at the outset the view of MCSN that the assignment of right to manage copyright also constituted the assignment of right to sue for infringement of such copyright under the Constitution. According to the Court, it is only the owners of copyright that can sue on the infringement of their rights. [Page 31].


It is disappointing that the Court of Appeal chose not to address the crux of the appeal. 

The decision of the Federal High Court refusing the applicant’s application was the subject of the appeal. Yet, the Court of Appeal chose to ignore the subject of the appeal and focus on the technical issue of procedure. That is not say that the Court of Appeal acted amiss – competency of suits goes to jurisdiction which supercedes all other issues no matter how pertinent.

The reaction of the Copyright Commission and that of its favoured collecting society, COSON to the judgment of the Court of Appeal is a tad misleading. Apart from COSON’s headline “Court holds that the provisions of the Copyright Act requiring the approval by the Copyright Commission of a CMO are constitutional”, both the NCC and COSON’s reportage of the judgment is almost word-for-word: “In a unanimous judgment of the Court of Appeal Lagos delivered on October 21, 2016, the Court dismissed the MCSN appeal. In the lead judgment delivered by Anyanwu J.C.A, the court held that the provisions of the Copyright Act do not violate any constitutional rights reserved for MCSN”.

Contrary to the NCC’s assertion that the Judgment has “laid to rest the contention on who between COSON and MCSN should carry out the functions of collecting society for the music industry”, the Appeal Court in declining to resolve the issues raised by both MCSN and NCC at the appeal, has extended the fight matter to another day.

You can review the full judgment here or contact Afroleopa here.

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Monday, 20 February 2017

Afro Leo

Putting a price on creativity- Nigerian musos insist on their rights

The African music scene is thriving and popular artists are set to share in a projected R309 million annual earning in 2019 on digital formats alone.

While artists on the continent compose lyrics to feed avid consumers, watchdogs are having to make a song and dance about telecoms companies using their tunes illegally.

This is very much the case in Nigeria where a lawsuit filed last year has been touted as the biggest copyright infringement in Africa.

In May 2016, the Copyright Society of Nigeria (COSON) took MTN to court over alleged infringements on musical copyrights, claiming 16 Billion Naira (around R700M) in damages.

According to COSON’s claim, MTN infringed copyrights in COSON’s musical and sound recordings in MTN Friendship, Connect and Walk In Centres across Nigeria.

The claims also extended to MTN road shows, various MTN Music Concerts, Festivals, and award Shows, as well as platforms such as mobile radio and product activations.

A recent study of the African entertainment sector by PricewaterhouseCoopers (PwC) accountants showed rapid earnings growth in many African countries, fuelled largely by live performances by local artists.

PwC’s Entertainment and Media outlook 2017 says that digital will account for the majority of spending on recorded music in Africa in 2019. According to the authors, the Nigerian music industry will grow at a projected 13% annually.

“Healthy growth in music revenues in Nigeria. Nigeria experienced a 3.8% rise in total music revenue in 2014 to US$51 million, up from US$50 million in 2013, as digital music began to make a larger impact. Annual revenue is forecast to grow by an estimated CAGR of 11.3% to reach US$88 million in 2019.”

Thirty-six year old D’Banj, also known as The Kokomaster, is believed to be the wealthiest musician in the country, followed by TuFace Idibia and Yemi Alade.

The PwC study states that download sales peaked in 2015 and revenue from consumer spending on physical formats would stand at R302 million in 2019, less than half the revenue figure in 2014. Lower ringback tone sales and a move to access over ownership is likely to reduce the share to just 14% in 2019.

Mondaq.com attribute the boost in intellectual rights in the entertainment sector to a rising unemployment.

More Nigerian youths have discovered their creative talents and are now earning a living by creating intellectual and artistic works. International trade between Nigeria and other countries has contributed to the influx of international artistic works into the market. It is inevitable that owners of these works will only get their due return if they share in proceeds or obtain a fair compensation for their works,” says Emmanuel Ekpenyong writing on the site, adding that this can only be enforced if the work is actually registered with the copyright commission or COSON.

The Copyright society of Nigeria (COSON) is a collective management organization that registers artists and acts as the industry watchdog.

The Nigerian copyright  law, CAP C28 says that work eligible for copyright includes literary, musical and artistic works, cinematography films, sound recordings and broadcast material. The copyright can be conferred on the author who is domiciled in Nigeria or a citizen of the country.

COSON and MTN met out of court in December 2016, mediated by Prof Bankole Sodipo, in a bid to agree on a mediated settlement. Speaking after the meeting, COSON’s chair Tony Okoroji said a framework had been agreed upon in which to resolve the matter.

The meeting also agreed that all parties and organisations associated with them should cease all adversarial actions henceforth to ensure that there is a conducive environment for the resolution. When we are done, every creative person and investor in the Nigerian music industry will benefit immensely from the engagement,” said Okoroji.

Funso Aina, spokesperson for MTN Nigeria, said the matter is still in court at its preliminary stage. 
"MTN has filed a defence against the action. On a related note, discussions are still ongoing between parties under the supervision of a mediator on a possible amicable resolution. The court adjourned the matter to April 4, in order for parties to report to the court on status of settlement discussions."

There is more on copyright enforcement in Nigeria from Afro-IP this week. Chijioke Ifeoma Okorie will be publishing a much awaited post on the judgment in Musical Copyright Society of Nigeria Ltd v Nigerian Copyright Commission. Stay tuned.

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Friday, 17 February 2017

Afro Leo

Celebrating 40 years, ARIPO kickstart 2017 with pair of MOUs

ARIPO signed two significant agreements in February, paving the way for better economic growth and innovation in Africa.

According to the African Regional Intellectual Property Organisation (ARIPO), Directors General Paulin Edou Edou (OAPI) and Fernando dos Santos (ARIPO) signed a four-year co-operation agreement on behalf of their organisations, following a three day seminar in Harare.

The formal accord will entail a streamlined approach toward harmonising their systems, providing technical assistance and taking common positions on IP policies. A joint commission will meet annually.

Another ground-breaking memo of understanding was signed with CISAC, the International Confederation of Societies of Authors and Composers, who represent over four million creative the world over and are considered the global body for the protection of creative rights.

The two signed the agreement on February 14 at a ceremony in Harare, after the organisations recognised a need to further the creative and cultural potential of the African nations.

Royalty collections in Africa total US$68.6 million annually with potential for sharp growth. Studies in a few ARIPO nations (namely Kenya, Malawi and Tanzania) showed that creative industries contributed three to five percent of the GDP. Collections for creators grew almost 15% in 2015, yet amounts to less than one percent of the global collections report.

The Memorandum of Understanding signed by the two bodies will see joint projects on strengthening copyright, technical exchange, education and training of organisations, as well as collecting revenue on behalf of creators.

ARIPO Director General Mr. Fernando dos Santos said the signed agreement should act as a catalyst for the African governments to continue supporting and promoting the creative industries.”

CISAC oversees a global network of 239 member societies in 123 countries. These include 36 members in 31 African countries. These organisations collect and distribute revenues and promote the interests of creators across five repertoire groups: music, audio-visual, drama, literature and visual arts.

See www.aripo.org for more.
Bits & Bobs

Big shout out to Victor Nzomo (IPKenya blog) for guessing where Afro Leo found himself midweek. Gabon, you should go there! Happy Friday.

Look out for information on the Africa's largest ever copyright claim, coming straight to you via Afro-IP on Monday.

Thanks to those who voted on our rejuvenate poll (click here and then gaze right) - an overwhelming show of support. Much appreciated.


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Wednesday, 15 February 2017

Afro Leo

Where in Africa is Afro Leo?

Bonjour fellow Africa travellers.

This week, I am surrounded by nature, with huge dunes that rise sometimes 200 meters and give life to a dense and humid forest, savannah and mangrove. In these wonderful surroundings, chimpanzees, lowland gorillas and colobus monkeys are free to enjoy the forest food. The animals are well protected here and buffalo, elephants and panthers live without fear of being poached.

Eroded white and red clay has created natural amphitheatres – or ‘cirques’- which are amazing to look at. I went up in a helicopter yesterday to view the animals and tonight I am going to the coastal strip to see the turtles that lay their eggs on the beach. Along this coastline is a lagoon where the world's highest number of islands in a river mouth can be found- more than 400 small outcrops.

This paradise is found in Africa’s least densely populated country and visitors have likened it to Costa Rica. You’ll also be interested to know that it is the home of a hallucinogenic called ‘Iboga’ which is seducing the Western world with its medicinal properties. Can you guess where am I?


It is situated on the equator

The home language is French

If I could see very far, I would be able to see Brazil
The first IP convention that this country signed was in 1962, the last in 2003
The African and Malagasy Intellectual Property Organization (OAMPI) was signed in the capital city
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Tuesday, 14 February 2017

Afro Leo

Uncorked: Bogus booze on the rise and what’s being done…

The Relief Market in Nigeria, central Africa, is a hive of activity as vendors cook, clean and arrange their produce which ranges form dried fish to fresh herbs. Shoppers can also purchase their favourite tipple, but beware- the brandy in these stalls may not be the real thing. 

The National Agency for Food and Drug Administration and Control in Nigeria, NAFDAC, arrested nine suspects connected with alleged fake wine and beverage at the Relief Market in Onitsha, Nigeria last week.

The News Agency of Nigeria reported that the arrest of five males and four females, followed a “special raid and enforcement operation of the Federal Government’s ban on imported fruit juices”.

NAFDAC’s head of investigation, Kingsley Ejiofor, explained that those arrested in the Nigeria operation were involved in the bottling of counterfeit and dangerous drinks.

We came here for a special assignment to mop up all counterfeit and prohibited products which include imported fruit juices, food, drugs, medical devices, cosmetics, detergent and bottled water,” said Ejiofor.

He said they uncovered the illegal manufacture of dangerous chemicals being bottled with popular brand names.

According to Ejiofor said that popular brands of beverages like Hennessey, 501, Johnny Walker, Red Label whisky, Best Marula fruit cream, Pure heaven, Amarula, Baron De Vals, Eva and J&W, among others were being faked.

But the incidence of fake spirits and especially, fake wine, is global and becoming an increasing problem. Italy have become particularly adept at uncovering wine scams created to defraud both merchants and consumers.

In February 2016, Reuters reported that the gendarmerie confiscated 9200 bottles of Prosecco and a machine used to make the wrappers. The bust of mock bubbly was worth 350 000 euros on the street. Sham champagne has also received its fair share of publicity, resulting in strict IP laws governing the use of the term “champagne”.

Kate Jonker, general manager at the Cape Wine Makers Guild told Afro-IP that they now insist on holograms on the labels of all wine they handle.

For about two years now, we have been using holograms to identify the auction wines. The farmers also only print enough labels for their bottles in order to keep it tight and strict,” she says.

As an agent that sells and markets on behalf of their 47 members, the Guild represents wine-makers that have been producing out-standing wine for at least 5 years and each year new members are considered for membership.

Two years ago the wine world was shocked at the arrest of respected connoiseur, Rudy Kurniawan who was sentenced to 10 years in prison after being exposed for millions of dollars worth of wine fraud.

He created the impressive collection using empty bottles and refilling them with a similar product and re-corking. Over 500 bottles of his “fake” wine were destroyed after he was imprisoned.

Bloomberg reported recently that new ways of bottling wine are being used to combat potential fraud, which often involves replicating labels or using old bottles.

These innovative techniques, allow each bottle a unique fingerprint that can be scanned for verification. The “bubble tag” is a sticker that is placed over the cork and the glass with a random bubble design. Many also emboss the base of their bottles with the wine farm name to further authenticate the contents.

The DrinksBusiness.com reported in November 2014 that French newspaper Sud Ouest estimated that 20% of global wine sales were fake wines- predominantly linked to the Bordeaux and Burgundy regions in France.

If the specialists and connoiseurs can’t tell the difference between an authentic and a fake wine- how is the man on the street supposed to know?” says Jonker. She suggests only buying wine from authorized dealers or trusted suppliers, or straight from the wine farm itself.

Jonker also warns that investors should be aware of how wine has been stored before they buy it.

A site dedicated to the elimination of international wine counterfeiting, www.winefraud.com, holds courses for interested parties who want to learn more about counteracting the problem. They focus on labels, printing, corks, bottling glass and even the glue used to affix labels.

Ejiofor warned the public after the Nigerian arrest to “destroy cups, plastics or bottles after use because not doing so encourages these illegal producers. Retailers and consumers should also issue and collect receipts for every product purchased to enable tracking,” he said.

Afro Leo suggests that wine producers should also combat the problem using traditional IP techniques. An advanced trade mark and (where possible, copyright) filing program should be undertaken. This may include the labels and shapes of the bottles, as well as the word marks including those in the services classes. Regional protection for geographical indicators should be considered too and filings should be made at customs to enable swift enforcement. These programs should include export, defensive and source markets for products. There have been stories of fake vineyards in China, for example.
It's a significant problem for Africa whose wine regions rank amongst the best in the world.
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