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Due to unchecked infringements on music content and copyright related issues by many establishments across the country, the Nigerian music industry is losing an average of US$1 billion annually.
The figure represents revenue which the industry would have earned from payments for the acquisition of Public Performance License by many establishments to enable them legally use music contents, sound tracks and recordings in their daily business activities, while content owners earn royalties from the license fees.
The South African music industry earns an average of US$150 million in royalties annually from such licensing fees.
The license contributes 50 percent of earnings for content owners and managers and is foremost of the three licenses issued by Copyright Society of Nigeria (COSON), the sole Collective Management Organisation (CMO) for musical works and sounds in Nigeria.
Explaining the negative impact of the infringement of the license during his presentation at this year’s edition of Music Week Africa, held recently at the Nigerian Stock Exchange, Lagos, Chinedu Chukwuji, CEO, COSON, disclosed that most radio and TV stations, thousands of hotels, bars, eateries, restaurants, live bands and shopping malls among other establishments across the country, are culprits of the infringement which has left many music content owners impoverished, while peddlers of their creative ingenuity keep smiling to the bank.
Chukwuji said that the Collective Management Organisation is not resting on its oars, as it has in the recent past carried out several enforcements on supposed culprits. He recalled that nine establishments were charged to court for illegal use of music content, while furthering its campaign on zero infringement and networking with stakeholders across the country.
Sunny Ugwu, general manager, Sony Music West Africa, who was one the panelists at the event, noted that the industry needs to be better structured, adding that strong institutions such as COSON, collaboration of all stakeholders and the judiciary to ensure effective compliance to regulatory laws would help.
He further observed that the huge sums of money that the country loses annually can be curbed and put into better use, especially music infrastructure development.
Proffering solutions to the persisting infringement, Sam Onyemelukwe, head of Anglophone Africa, Trace TV, said COSON needs to partner other global collective management organisations, besides creating awareness on structured content acquisition to industry stakeholders.
Speaking from the legal perspective, Sandra Oyewole, partner, Olajide Oyewole LLP, a panelist at the event, noted that the failure of most musicians and content owners to emphasise their works as intellectual property and secure them as such, has led to the persisting infringement.
Oyewole urged COSON to further its awareness on content ownership and need to understand the Copyright Act, to enable content owners make a case when their works are infringed upon.
Adia Sohwo, director, Digital Business, Etisalat, cleared the air on the accusation of telecommunication companies as infringers of content right, noting that telecommunication companies major in calls and data, which subscribers often use for music downloads, though with the consent of the owners.
Reflecting the theme of the event, “The role of music industry in revitalising the economy: Jobs, Money and Opportunities”, in his keynote address, Oscar Onyema, CEO, Nigerian Stock Exchange, pointed out that Nigeria’s music landscape has grown significantly in the past few years, creating ample investment opportunities.
With total market capitalisation of N15.7 trillion across all its product categories, Onyema assured that Nigerian Stock Exchange is well-positioned to assist the Nigerian entertainment industry, which requires substantial capital and investments to achieve its potential in Africa.
He therefore called on the industry to leverage on the abundant opportunities in the capital market to raise funds for further expansion by listing on the exchange.
“Globally, long term growth is often achieved through public quotation; we believe that this and more can be achieved by having more entertainment companies listed on the exchange. Apart from listing companies, we can work with the industry to structure special purpose funds to drive activity across the entire industry.
“We are well-positioned to help the entertainment industry achieve its full potential as well as reduce the cost of raising capital and building infrastructure that will make the Nigerian entertainment industry globally competitive”.
OBINNA EMELIKE
