Court To Hoteliers: Obtain Copyright Licences Before Using Musical And Audiovisual Works

The Federal High Court has reaffirmed the rights of Collective Management Organizations (CMOs) to license and collect royalties on copyrighted works used by hotels and similar establishments across Nigeria, dismissing attempts by some operators to avoid such obligations.

In Abuja, Honourable Justice Emeka Nwite struck out a suit filed by Bolton White Hotels, Johnwood Hotels Limited, and Bolton White Apartments against the Musical Copyright Society Nigeria Ltd/Gte (MCSN). The hoteliers had sought to restrain MCSN from licensing them for the use of musical works and sound recordings in their premises.

The plaintiffs argued that since they already paid subscriptions to pay-TV providers, they did not require additional licences for the music and programmes broadcast within their hotels. They also claimed that MCSN had no basis to demand the sum of ?64,403,634.57 as licence fees.

However, Justice Nwite agreed with MCSN’s counsel that the application lacked merit and dismissed the case, declaring the action “entirely incompetent.”

In a related case, Honourable Justice Obiora Atuegwu Egwuatu also dismissed a similar suit brought by Reiz Continental Hotels against the Audio Visual Rights Society (AVRS). The hotel had argued that its subscription to Multichoice Nigeria Limited (owners of DSTV) exempted it from licensing obligations.

Justice Egwuatu, however, ruled that CMOs are legally recognized under Section 88 of the Copyright Act to license and collect royalties on behalf of copyright owners. He stressed that hotels and operators must obtain appropriate licences to use copyright works in their businesses, regardless of whether such works are sourced through pay-TV subscriptions.

Both judgments reinforce the legal position that hotels, bars, restaurants, and other commercial establishments are required to secure licences from recognized CMOs before publicly using copyrighted music, films, or audiovisual works.