Federal High Court backs AVRS right to license audiovisual works in hotels

The Federal High Court in Abuja has delivered a landmark judgment affirming the legal right of the Audiovisual Rights Society of Nigeria (AVRS) to license hotels and other commercial entities for the public use of movies and films transmitted via Pay-TV.

The court, presided over by Justice Egwuatu, dismissed a suit filed by Reiz Continental Hotel Limited, which had sought a declaration that it was not obligated to pay copyright fees for audiovisual content accessed through subscription-based broadcasting.

In its ruling on July 24, the court held that AVRS, as a government-approved collective management organisation (CMO) under Section 88 of the Copyright Act 2022, is legally empowered to issue licences for the use of audiovisual works in commercial settings. It also upheld AVRS’s status as the assignee of copyright in several films.

The judge rejected the hotel’s claim that it merely received broadcast signals and was not liable for a licence. He ruled that Reiz, as a profit-oriented hospitality business with several TV sets showing audiovisual content, was in breach of Sections 11(b), (c), and (f) of the Copyright Act. The hotel was also found to have violated Section 36(1)(a) and (g), which makes it illegal to perform copyrighted works in a business setting without appropriate licensing.

The court further noted that Reiz’s membership in the Hotel Owners Forum Abuja (HOFA), which had entered into a collective licensing agreement with AVRS, was binding on the hotel and invalidated its refusal to recognise the agreement.

Reacting to the judgment, AVRS chairman Mahmood Ali-Balogun described it as a major milestone for Nigeria’s creative industry.

“This judgment is a profound moment for members of AVRS. It affirms the legitimacy of our collective licensing structure and ensures that copyright owners in the film and movie sector are rightfully protected under the law,” he said.

“AVRS has always approached licensing with openness, fairness, and a readiness to dialogue. Today’s court decision is a win for our members, the film industry, Nigerian creators, and the nation. It strengthens the foundation upon which the creative economy can grow and attract investment.”

AVRS’s legal counsel and Principal Partner at Alpha-Edge Legal, Mike O. Akpan, echoed this sentiment, saying the ruling brings clarity to a long-debated issue in the hospitality and audiovisual sectors.

“The judgment delivered by the Federal High Court in Abuja is a significant milestone in the enforcement of copyright law in Nigeria,” he said.

“It brings clarity to an issue that has long been debated within the hospitality and audiovisual sectors: that commercial use of copyrighted audiovisual content—whether via pay-TV or other means—requires proper licensing.”

He added, “Importantly, the Court’s decision is not adversarial or punitive. Rather, it opens the door for a more transparent and cooperative approach to licensing—where businesses, creators, and CMOs can work together toward mutual benefit. It reinforces the fact that the intellectual labour of our content creators has value—and that value must be respected and compensated in accordance with the law.”

Intellectual property consultant Dr. Chinedu Chukwuji also praised the judgment, calling it a validation of the role of copyright in Nigeria’s creative economy.

“This is more than a court victory—it is a validation of the place of intellectual property in Nigeria’s digital and creative economy. The ruling reinforces the legal framework that underpins the role of AVRS,” he said.

“It sends a strong signal to commercial users of protected content that creators and rightsholders must not be sidelined. We see this as a call to all stakeholders to engage constructively in building a more sustainable creative economy for Nigeria. The future is bright if we all play our part.”

AVRS remains the only collective management organisation licensed by the Nigerian Copyright Commission to administer public performance rights in audiovisual works across the country.