The Federal High Court in Abuja has ruled that hotels and business establishments must obtain licenses from the Audiovisual Rights Society of Nigeria (AVRS) when using copyrighted movies and films through Pay-TV subscriptions for commercial purposes.
Justice Egwuatu dismissed the case filed by Reiz Continental Hotel Limited, which had sought a declaration that it should not be compelled to pay copyright fees for audiovisual content accessed through subscription-based broadcasting services.
In the July 24, 2024 ruling, the court held that AVRS, as an approved collective management organization under Section 88 of the Copyright Act 2022, has the legal authority to issue copyright licenses to commercial users of audiovisual works, including hotels.
The court rejected Reiz Continental Hotel’s argument that it was merely a recipient of Pay-TV broadcasts and therefore not liable for licensing fees. Instead, the judge ruled that the hotel’s profit-driven hospitality business, which operates multiple television sets transmitting audiovisual content, constituted commercial use that violated sections 11(b), (c), and (f) of the Copyright Act without proper licensing.
The judgment also established that the hotel’s participation in a collective licensing agreement through the Hotel Owners Forum Abuja (HOFA) was binding and prevented it from challenging the validity of the agreement with AVRS.
Mike O. Akpan, legal counsel to AVRS and Principal Partner at Alpha-Edge Legal, described the ruling as “a significant milestone in the enforcement of copyright law in Nigeria,” bringing clarity to long-debated issues in the hospitality and audiovisual sectors.
AVRS Chairman Mahmood Ali-Balogun called the judgment “a profound moment” that affirms the legitimacy of collective licensing structures and ensures copyright owners in the film industry are protected under the law.