Introduction

In a landmark judgment delivered on 17th January 2025, the Federal High Court, Lagos Judicial Division, per Honourable Justice A.L. Allagoa pronounced on a critical aspect of Nigerian copyright law. In Suit No. FHC/L/CS/1103/2021-Musical Copyright Society of Nigeria Ltd/Gte and Broadcast Music Incorporation v. Pyramid Regal Services Ltd (Owner and Operator of the George Hotel), the Federal High Court ruled that the Defendant in the suit is not required to obtain additional licenses from the Plaintiff, a copyright collecting society in Nigeria, to access and transmit musical works through subscribed DSTV channels.

Case Summary

The Plaintiffs, the Musical Copyright Society of Nigeria Ltd/Gte and Broadcast Music Incorporation, instituted the suit against the Defendant, Pyramid Regal Services Ltd, the owner and operator of the George Hotel, for an alleged infringement of their copyright. They sought an injunction to restrain the hotel from performing, playing, transmitting, or communicating musical works without prior authorization and licensing by the Plaintiffs. The Plaintiffs claimed damages in the sum of N153, 605,018.25 (One Hundred and Fifty-Three Million Six Hundred and Five Thousand and Eighteen Naira Twenty-Five Kobo) for the alleged infringement.

In opposing the claim, the Defendant contended that all musical works played within the premises of the hotel were lawfully disseminated through DSTV channels, a paid subscription service owned by Multichoice Nigeria Limited. The Defendant argued that since Multichoice Nigeria Limited is a licensed broadcaster that pays requisite royalties to the Plaintiffs, it will amount to double compensation to require the hotel to obtain a separate license from the Plaintiffs.

The Court’s Decision

In its judgment, the Court observed that the Plaintiffs did not challenge the validity of Multichoice Nigeria Limited's broadcasting license. Also, that the Plaintiffs did contend that the DSTV channels accessed by the Defendant lacked the necessary licenses to broadcast the musical works in issue in the case.

The Court agreed with the Defendant’s contention that subscribing to DSTV- a licensed broadcast provider- constitutes lawful access and use of the transmitted content. The Court therefore dismissed the Plaintiffs' claims and held that the Defendant did not infringe on the Plaintiffs’ copyright.

Legal Implications for Nigerian Jurisprudence

This decision marks a crucial development in Nigerian copyright law particularly relating to the rights of hotels that rely on subscription-based broadcasting services. The decision establishes the following principles:

a. Hotels that subscribe to licensed broadcasting services such as DSTV are not required to obtain additional licenses from copyright collection societies for transmitting copyrighted works contained in such broadcasts.

b. This judgment provides clarity and protects hotels that lawfully access broadcast content through subscription services from frivolous copyright infringement claims.

c. Broadcasting providers like Multichoice Nigeria Limited are deemed to have obtained all necessary licenses from copyright owners, thereby protecting their subscribers from any claims of infringement.

Conclusion

The Federal High Court’s judgment in this case provides significant relief to the Defendant and hotels by clarifying the extent of copyright obligations when using licensed broadcasting services. It provides a critical balance between protecting the intellectual property rights of musicians and preventing double compensation in respect of the same rights.

We are honoured to have represented the Defendant in achieving this landmark outcome.