NCC Disburses N1.2 Billion Copyright Levy to MCSN as ReLPI Calls for Transparency
The Nigerian Copyright Commission (NCC) has made a significant move by remitting the first tranche of the copyright levy to the Musical Collection Society of Nigeria (MCSN), amounting to One Billion, Two Hundred and Five Million Nine Hundred and Fifty-Six Thousand, Five Hundred and Eighty Naira, Twenty Kobo (N1,205,956,580.20). This payment, authorized under Section 4 of the Copying (Levy On Material) Order 2021, marks a pivotal moment for the Nigerian music industry, with MCSN hailing it as a new dawn for right owners, particularly those at the grassroots level.
MCSN Celebrates Payment Amid Industry Controversy
In a statement released by MCSN, the society expressed gratitude to President Bola Tinubu, NCC Director-General John Assien, and Minister of Justice Lateef Fagbemi SAN for facilitating this disbursement. MCSN emphasized that this levy will benefit music creators across Nigeria, regardless of their location, reinforcing its role as the NCC-approved Collective Management Organisation (CMO). However, this development has not been without contention, as the Record Labels Proprietors Initiative (ReLPI) has raised serious concerns regarding transparency and the legal mandate of MCSN.
ReLPI Challenges MCSN's Authority Over Sound Recordings
ReLPI, representing major record labels such as Sony Music, Universal Music, Warner Records, Mavin Records, and Chocolate City, has objected to the NCC's decision to pay the levy to MCSN. Citing Section 89(3) of the Nigerian Copyrights Act 2022, ReLPI asserts its right to receive the copyright levy on behalf of its members, who own sound recordings. The group argues that MCSN's legal remit is limited to musical compositions and does not extend to sound recordings, which are distinct under Nigerian copyright law.
ReLPI's statement, signed by Chairman Tega Ogenejobo, calls for clarity and accountability, stressing that any distribution of sound recording revenues must be based on express authorization from rightsholders and adhere to principles of good governance. The initiative highlights that its members account for over 55% of Nigeria's recorded music market, including works by prominent artists like Davido, Wizkid, and Burna Boy.
MCSN Counters ReLPI's Claims
In response, MCSN has dismissed ReLPI's campaign as lacking merit, pointing out that the Performing Musicians' Association of Nigeria (PMAN) has a subsisting agreement with MCSN to represent the copyright interests of all performers and producers in Nigeria. MCSN also criticized ReLPI for being dominated by foreign entities, accusing them of attempting to undermine local efforts to build a robust collection system in Nigeria's creative market.
MCSN further argued that every country has the discretion to protect intellectual property within its territory, aligning with international conventions. The society thanked the NCC and Ministry of Justice for implementing the levy, which it believes will eliminate confusion in the licensing and royalty payment processes within the Nigerian music industry.
Ongoing Battle for Music Royalties in Nigeria
The controversy underscores a broader struggle over the future of music royalties in Nigeria. Despite a recent high-level meeting involving government ministers and industry stakeholders to address ReLPI's concerns, the NCC's payment to MCSN suggests a maintenance of the status quo. Key issues remain unresolved, including whether MCSN has the authority to handle sound recording royalties and how transparency and accountability will be ensured in the distribution of funds.
As stakeholders await further developments, the need for a clear, lawful collective management system for sound recording rights, in line with the Copyright Act 2022 and international best practices, becomes increasingly urgent. The Nigerian music industry continues to watch closely, hoping for reforms that will foster fairness and growth in the creative economy.
