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Introduction:
The Nigerian music industry is vibrant and diverse, with artists creating music across various styles and genres. For this reason and numerous others, navigating the music licensing and royalty collection landscape in the Nigerian Music Industry can be complex and daunting for many artists who usually need to learn about the business side of their creative endeavors while also honing their craft. This article provides an overview of what music licensing entails, how artists can protect their intellectual property and earn royalties, and the role of royalty collection societies in the Nigerian music industry.
Music and Legal Rights
Copyright is the legal term used to describe creatives' rights over literary, musical, or artistic works1. In other words, an artiste who creates music is said to have a copyright over his/her creation and is legally recognized as the 'copyright holder' who can make any decision over it. It is a kind of Intellectual Property that grants the copyright holder exclusive rights and prevents anybody else from duplicating or using the work for commercial purposes without the owner's consent.
The Nigerian Copyright Act, 2023 ("the NCA") is the primary legislation governing copyright protection for artists and creators in Nigeria. It provides a comprehensive framework for the protection of various forms of creative works, including music2. The NCA establishes the rights of copyright owners, including musicians, and provides mechanisms for licensing and enforcement.3 The NCA splits music into two (2) frames, which include 'musical works' and 'sound recordings.' It 4defines "musical works" as any musical composition, irrespective of musical quality, and includes works composed for musical accompaniment, while "sound recording" is defined as the fixation of a sound sequence capable of being perceived aurally and reproduced.5
The NCA further establishes the Nigerian Copyright Commission ("the NCC"), which is the body responsible for all matters related to copyright in Nigeria. The NCC plays a fundamental role in copyright protection in Nigeria, providing oversight, enforcing laws to protect artists' rights, and ensuring their fair compensation. Additionally, it exercises any other functions and duties necessary to attain the NCA's objectives.
Overview of Music Licensing
Licensing is a privilege granted by a state or city upon the payment of a fee.6 In other words, Music licensing can be defined as the process by which an artist, who is a copyright holder, grants permission for their music to be used in various ways, such as in films, TV shows, advertisements, and public performances, for a fee or royalty. This is the direct opposite of an Assignment of rights over musical works or sound recordings, which is the transfer of ownership rights in the work produced. In contrast, a license is permission given to others to use one's work while still retaining ownership rights.7 Therefore, the assignee/licensee is granted exclusive rights over the musical work or sound recording to reproduce, distribute, publish, perform, make adaptations/translations, or broadcast and restrain any other person from exercising such rights.8
In Nigeria, music licensing typically involves mechanical licenses for reproducing and distributing music, synchronization licenses for using music in audiovisual productions, and public performance licenses for playing music in public spaces.
Registration of Copyright
Copyright in Nigeria is automatically protected when the work is fixed and does not require registration. Therefore, to safeguard the interests of creatives in Nigeria, the NCC has established a voluntary copyright registration scheme that allows copyright holders to inform the NCC of the creation and existence of their work. The NCC has justified this based on the following:
- the public can independently verify information about the work or its author using the records created by the NCC;
- the author's acknowledgment certificate serves as prima facie proof of the information it contains;
- the plan offers a repository for original copies of works that have been notified; and
- the information and data in the notification database provide trustworthy rights management information to the public and potential work licensees. 9
The main goal of registration and notification to the NCC is to shield the copyright holder/owner from infringement and prevent others from copying their work.
Applications to the NCC may be filled out online or delivered in person to any NCC office nationwide. A completed registration form, two (2) copies of the work, and proof of payment of the required fee must be submitted with the online application.10
Royalties and Royalty Collection Societies
Black's Law Dictionary defines royalty as "a payment in addition to or in place of an upfront payment made to an author or inventor for each copy of a work or article sold under copyright or patent."11
As previously mentioned, a music license may only be granted in return for a payment or royalty; therefore, artists who fail to recognize this fact or lack the required knowledge on how to proceed may find it challenging to make money from their creations. In other words, the relationship between music licensing and the collection of royalties is fundamental to monetizing musical works and sound recordings. Music licensing and royalty collection ensure that creators/copyright holders are appropriately compensated for using their music in different mediums and platforms.
Royalty collection societies manage and enforce copyrights over musical works by selling exclusive and non-exclusive rights to use such work. Thereafter, they collect the royalties and distribute them to various parties entitled to the royalties on a musical work or sound recording. The specific entitlements depend on the roles and rights associated with the music's creation, performance, and distribution. In addition to songwriters and artists, there may be many other participants, including publishers, distributors, songwriters, record companies, recording artists, and others.
The NCA provides for Royalty Collection Societies, which are mentioned in the NCA as collective management organizations (CMO), which are defined in the NCA as organizations representing copyright owners, which have as their principal objectives the negotiation and granting of licenses, collecting and distributing royalties regarding copyright works.12 CMOs are empowered by the NCA to function as intermediaries between rights holders and users of copyrighted works, ensuring fair compensation for creators and facilitating the legal and ethical use of intellectual property in various sectors, especially the music industry.13
Different Royalty Collection Societies in Nigeria play a crucial role in collecting and distributing royalties to copyright holders. They include the Music Copyright Society Organization of Nigeria (MSCN), the Performing and Mechanical Rights Society (PMRS), the Reprographic Rights Organization of Nigeria (REPRONIG), and the Audio-Visual Society (AVRS). However, the MCSN remains the only entity recognized as a CMO in Nigeria regarding the representation and interests of music creators. It ensures that composers, lyricists, performers, producers, and publishers are remunerated when their works are used in public14 and also licenses and collects royalties for a range of uses of composition and recorded music in Nigeria and other countries through partnerships.
The MCSN was created in 1984 to, amongst other things: register creators' works in Nigeria and other territories around the world and monitor when, where, and what works are used; negotiate tariffs and other conditions with Music users (Venues, Radio, etc); license the use of protected works on behalf of its members and of other rights holders it represents; collect the fees from Music Users and distribute to the rights holders and; advocate for the legal, fair, and ethical use of music and visual art.
Earning Royalties
To earn royalties in Nigeria, the artist/copyright holder must ensure their music is appropriately copyrighted through the NCC. The copyright holder then registers as a member of the MSCN for the collection of their royalties. Where a copyright holder decides to license their music to a user, the copyright holder must first enter into a written agreement with the user for music licensing in exchange for a fee/royalty. Thereafter, the MSCN monitors the licensed musical work or sound recording usage to ensure proper royalty collection. If an agreement cannot be reached between the parties or their representatives on the terms and conditions of the agreement, the NCC is empowered to make the final decision.15
Conclusion
As can be gleaned from the above, understanding the music licensing process, including the role of royalty collection societies and rights management organizations in Nigeria, enables artists in Nigeria to enjoy a continual stream of income from royalties pertaining to their creative work(s). Artists should, therefore, be encouraged to keep accurate records of their music usage and stay informed about their rights and entitlements to maximize earnings from their creative work.
Footnotes
1. What Musicians Should Know About Copyright Law In Nigeria by Woye Famojuro and Amara Nedolisa at https://www.mondaq.com/nigeria/copyright/1071790/what-musicians-should-know-about-copyright-law-in-nigeria? Last assessed 3 March 2024
2. The Nigerian Copyright Act 2023
Three ibid
4. Section 108 the Nigerian Copyright Act 2023
5. ibid
6. Black's Law Dictionary (11th edition) Bryan A. Garner 'license'
7. Section 30 of the Nigerian Copyright Act 2023
8. What Musicians Should Know About Copyright Law In Nigeria by Woye Famojuro and Amara Nedolisa (Famsville Solicitors) https://www.mondaq.com/nigeria/copyright/1071790/what-musicians-should-know-about-copyright-law-in-nigeria? Last assessed
9.http://www.eregistration.copyright.gov.ng/ncc/faq last accessed on 13 May 2024.
10. What Musicians Should Know About Copyright Law In Nigeria by Woye Famojuro and Amara Nedolisa at https://www.mondaq.com/nigeria/copyright/1071790/what-musicians-should-know-about-copyright-law-in-nigeria? Last assessed 3 March 2024
11. Black's Law Dictionary (11th edition) Bryan A. Garner 'Royalty'
12. Section 88(7) of the Nigerian Copyright Act 2023
13. Licensing And Royalty Collection In The Nigerian Music Industry by Adeoluwa Ademola and Shalewa Akinde(AELEX) https://www.mondaq.com/nigeria/copyright/1402774/licensing-and-royalty-collection-in-the-nigerian-music-industry. Last assessed 16th April 2023
14. What Musicians Should Know About Copyright Law In Nigeria by Woye Famojuro and Amara Nedolisa at https://www.mondaq.com/nigeria/copyright/1071790/what-musicians-should-know-about-copyright-law-in-nigeria? Last assessed 3 March 2024
15. Licensing And Royalty Collection In The Nigerian Music Industry by Adeoluwa Ademola and Shalewa Akinde https://www.mondaq.com/nigeria/copyright/1402774/licensing-and-royalty-collection-in-the-nigerian-music-industry
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
