COSON’s Operating Licence Has
Lapsed – Federal High Court
The Federal High Court, Lagos,
has upheld the position of the Nigerian Copyright Commission (NCC) that, in
line with the Copyright Act and the Copyright (Collective Management)
Regulations, the Copyright Society of Nigeria (COSON) ceased to exist as an approved
Collective Management Organisation (CMO) with effect from 19th May 2019 when
its operating licence lapsed.
Delivering his ruling in an
application for interlocutory injunction brought by COSON in Suit No.
FHC/l/CS/425/2020, Hon. Justice A. M. Liman on Wednesday, 1st December 2021
held, among others, that COSON was not entitled to the relief of an injunction
to restrain the Commission from revoking its operating licence because the said
licence that it sought to preserve had lapsed. The court, in refusing the
application, aligned with the position canvassed by the Commission that COSON
did not satisfy the necessary conditions that would have enabled the Court to
exercise its discretionary powers in its favour.
In the substantive suit filed by
COSON in the Federal High Court, Lagos in March 2020 against the Nigerian
Copyright Commission, the company is, among other things, seeking a
declaration:
“For a perpetual injunction to
restrain the Commission from taking any steps purporting to revoke the operating
licence/approval of COSON or in any way or manner disturbing/continuing to
disturb or prevent /continuing to prevent COSON from lawfully enforcing the
constitutional rights of its members, affiliates, assignees and reciprocal
representation partners or interfering/continuing to interfere with the
internal management, operations, funds, audits or bank accounts of COSON or
preventing/continuing to prevent COSON, its members, affiliates, assignees and
reciprocal representation partners from earning income and sustaining
themselves with their Intellectual Property, pending the determination of the
suit.”
COSON had also filed a motion for
interlocutory injunction to restrain the Commission whether by itself or its
officials, privies, agents, servants or however called from taking any steps as
stated above, pending the hearing and determination of the substantive suit. It
is the said application for interlocutory injunction that the Court disposed of
in favour of the Commission.
Consequent upon failure to meet
the statutory conditions for renewal of its licence, the Commission had taken
the position that COSON could not legally perform the functions of a CMO,
including the granting of copyright licences and collection of royalties on
behalf of right owners.
Earlier in its judgment on 25th
March 2020, the Federal High Court, Lagos presided over by Hon. Justice Saliu
Saidu, in Suit No. FHC/L/CS/274/2010 (Musical Copyright Society of Nigeria
Ltd/Gte. v. Copyright Society of Nigeria Ltd/Gte.), had made an order restraining
COSON from using or continuing to use the name “Copyright Society of Nigeria
Ltd/Gte”.
The company, thereafter, filed a
notice of appeal against the judgment and brought a motion on notice for stay
of execution of the judgment, pending the hearing and determination of the
appeal. The same Federal High Court, on 24th June 2020, refused to grant the
application for stay of execution, holding that there was nothing to stay; the
relief granted being essentially of a declaratory in nature.
In light of the judgment and
rulings, the Nigerian Copyright Commission is treating the status of COSON as
being in abeyance until the subscribers take steps to regularise its corporate
existence under the Companies and Allied Matters Act. The Commission will also
continue to treat the operating licence earlier granted to COSON (by whatever
name called) as having expired.
For the avoidance of doubt,
section 39(4) and (5) of the Copyright Act makes it an offence for any group of
persons to purport to perform the duties of a collecting society without the
approval of the Commission.
The public, owners of music
copyright and users of music are hereby advised to take note of the current
status of COSON (by whatever name called) as an unapproved collective
management organisation or collecting society and be well guided. The
Commission will, henceforth, enforce the criminal provisions of the Copyright
Act and any persons having dealings with COSON (by whatever name called) or any
of its officials would be doing so at their own risk. Users of copyright works
are also advised to report any further demand for royalty payment from any
person or group of persons in the name of COSON to the Nigerian Copyright
Commission.
Vincent A. Oyefeso
Director, Public Affairs
For: Director-General
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