Court freezes music copyright levy funds

Justice Ambrose Lewis-Allagoa of the Federal High Court in Lagos has granted an interim Mareva injunction freezing copyright levy funds payable to the Musical Copyright Society of Nigeria.

The order restrained the Central Bank of Nigeria and 20 commercial banks from disbursing or releasing the funds pending further hearing.

The order was made on February 9, 2026, in Suit No. FHC/L/CS/207/2026, following an ex parte application filed on February 5, 2026, by the Record Label Proprietors’ Initiative and 11 leading record labels and music companies.

The plaintiffs include Mavin Records Ltd; Davido Music Worldwide Ltd; Premier Music Publishing Limited; Chocolate City Music Limited; Hypertek Digital Limited; Digital Music Commerce & Exchange Limited; Beggars Group Media Limited; Universal Music Group; Sony Music Entertainment Africa; Warner Music South Africa  Ltd; and Gamma Media Middle East.

The 2nd to 12th plaintiffs are suing through their lawful attorney, Record Label Proprietors’ Initiative.

Moving the motion ex parte, counsel to the plaintiffs, Oragwu Nnamdi, urged the court to preserve the disputed funds pending the hearing of the substantive Motion on Notice.

“We are seeking an order of this court restraining the Central Bank of Nigeria from disbursing, releasing, transferring or otherwise paying out any copyright levy funds attributable to sound recordings and intended for MCSN, pending the determination of our Motion on Notice,” Nnamdi told the court.

He further prayed the court to restrain MCSN, “whether by itself, its agents, servants or privies, from receiving, accessing, withdrawing, transferring, dissipating or otherwise dealing with the copyright levy funds, whether paid directly by the CBN or routed through any commercial bank.”

The applicants also sought an order directing the CBN and the affected banks to preserve the funds and file affidavits of compliance within three days of being served, disclosing the sums standing to the credit of MCSN in respect of the levy payments.

After listening to counsel and reviewing the affidavit evidence deposed to by Dr Chinedu Chukwudi, Justice Lewis-Allagoa granted the orders as prayed.

In a short ruling, the judge restrained the CBN, “its officers, agents or any person acting under its authority, from disbursing any copyright levy funds attributable to sound recordings and payable to MCSN, pending the determination of the Motion on Notice.”

The court also barred MCSN from “receiving, accessing, utilising, withdrawing, transferring, converting, dissipating or otherwise dealing with the funds, whether already received or yet to be disbursed.”

Justice Lewis-Allagoa further directed the CBN and the listed banks to preserve the disputed sums and file affidavits of compliance within three days of service of the order, disclosing the amounts standing to the credit of MCSN in respect of the levy payments earmarked for disbursement or already disbursed.

In addition, the court ordered that any copyright levy funds already received by MCSN and attributable to sound recordings owned by the 2nd to 12th plaintiffs after they had validly opted out of the collective management and administration of their rights “must be preserved intact.”

MCSN was also directed to render an account of such funds and refrain from any further dealings with them pending the hearing of the Motion on Notice.

The matter was adjourned to March 12, 2026, for the hearing of the Motion on Notice.

culled from punch