FROM venturing into music or any branch of the arts, artistes are expected to reap the rewards of their hard work. This comes either in form of brand endorsements, show performances or the least talked about but more important, royalties.
Simply put, on a broader sense, royalty is a compensation for the use of property, usually copyrighted works or natural resources. It comes in the form of a percentage of gross or net profit or a fixed amount per sale to which a creator of a work is entitled, agreed upon in a contract between the creator and/or distributor in exchange for a license to manufacture and/or sell the product.
On paper, it appears simple but when it comes down to effecting agreements, the issue of royalties and collecting comes with a whole lot of issues which perhaps accounts for the litigations and counter litigations in the Nigerian music scene today.
So long as they continue to hold the attention and interest of their audience, entertainers deserve to collect royalties. Copyright registration entitles a musical composer to performance royalties whenever the musician’s composition is performed publicly.
In Nigeria, the debate is rife as to who holds the aces between the record companies and the recording artistes? Who makes the most money based on the sale of recordings of their songs? However royalties are calculated, they and contracts are extremely complex and controversial as they stem a hotbed of debate, as with almost everything else in the music industry.
As it pertains in other climes, as with Nigeria, a music publisher (or record label) is charged with ensuring that artistes receive payment when their compositions are used commercially. However, where the issue lies is the legality or otherwise of multiple collecting societies in Nigeria.
With the Copyright Society of Nigeria (COSON) and the Musical Copyright Society of Nigeria (MCSN) constantly at loggerheads as to the benefits of the multiplicity of the collecting societies, it becomes obvious that there are loopholes to be filled. While MCSN says that it is legally binding for it to collect rights for Nigerian artistes, COSON insists that it is the sole collecting body.
However, entertainment lawyer Akinyemi Ayinoluwa weighs in. “Having two good heads will always be better than one,” he says. This, he says, is more especially as “Nigeria needs more than one collecting society to administer collection of copyrights so that all hands can be on deck, a case of a monopolistic system might not do justice to the besetting issue at hand.”
These days, the activities of such bodies come under close scrutiny as more Nigerian artistes have started paying more attention to how their intellectual property fares out there. Thus recently, Angel of My Life crooner, Paul Play Dairo, dragged telecommunication company, MTN, and Ultima Limited to court for the unlawful use of his song in the reality TV show, MTN Project Fame West Africa. The artiste is of the opinion that though the Nigerian music industry is still growing, there is room for more expansion.
“The music industry to the American government is like the oil industry in Nigeria. American economy also thrives on the entertainment industry. Our artistes can also benefit from the growth of the industry in Nigeria. When you have a monopoly, this will not be flexible. They will take things for granted. I don’t know why Nigerians feel that only one collecting society will solve their problems. And also, as a concerned Nigerian musician, I believe that I have the right to protect my intellectual property, I have the right to choose the collecting society that I want to join. It should not be enforced on me. We are not in the military era. We are in a democratic dispensation so I believe that,” Play opines.
It has been said that music publishers are facing trying times as a result of the impact of piracy, digital rights management and growing distribution channels. Significant uncertainties exist over the future of the industry, especially with the emergence of “the blue nowhere”, the cyberspace.
On the way forward, Ayinoluwa proposes an amendment of the Copyright Act to address the current issues foisted by technological advancement on exploitation of intellectual works. “I feel we should also embark on a major awareness campaign to publicise these amendments; make government policies that favour the creative sector as a main stay of the economy, just as petroleum is seen as a major money spinner and ensure adequate law enforcement by agencies and the law courts can help curtail illegalities and ensure a smooth run in the industry and in the administration of copyrights,” the lawyer says.
He notes that no law compels any artiste to be compulsorily affiliated with collecting societies, though COSON, as a body, is still making baby steps. “As the body grows into maturity I believe it’l become more transparent as to its operational models,” he adds.
However, when contacted for his take on the benefits of otherwise of multiple collecting societies, the Chairman of COSON, Tony Okoroji said that it is a major issue and one should be given a chance for proper representation. “I don’t want to give one line. It is a lengthy issue and we need to reply it properly. I don’t want to do that because it has caused crisis in the past and I know there are people who want to use all kinds of tricks to further their agenda. I don’t want to fall into that trap,” he said.
On a general note, in signing music deals, artistes have variously been urged on with a number of pointers. First, it is not wise to sign a contract beyond 3 years with any label in Nigeria unless of course the artiste is in dire straits financially. Asking for too much sign-on fees doesn’t augur well for the artiste because it is perceived as a loan which has to be recouped by the record label.
Kenny ‘Keke’ Ogungbe, Founder/CEO of Kennis Music, recently delivered a speech at the inaugural edition of the Nigerian Entertainment Conference held on Friday, April 26. Addressing stakeholders at the Grand Ball Room of the Eko Hotel and Suites, Lagos, venue of the conference, Keke noted that the entertainment industry/music is the blood of any nation. With that in mind, he urges the various governmental agencies saddled with the responsibility of supervising the music industry to live up to their expectation and duties.
“The works of Arts/ Entertainment is now a universal product with global appeal. Musicians are national brands. The National Broadcasting Commission (NBC), the Nigerian Copy Rights Council, (NCRC), the National Film and Video Censors Board (NFVCB), amongst others, should ensure that all the artistic works emanating from Nigeria are of world standard, because mentally, such works have assumed the role of being national Brand Ambassadors. Our own Lagbaja was amongst the few selected African musicians that made the continent proud with the epic song, So Why,” according to Keke.
He further advises label owners on how to stem the tide of piracy, one factor that alters the course of artistes’ finances. Record Label owners, he said, should make the works of the artiste on their labels available at designated markets/shops.
“Scarcity sometimes encourages piracy. The strategy is to make the product available; when the product is accessible, the likely hood of pirated copy consumption will be low. I am encouraged by the recent development in the music industry as it relates to royalty. The tempo should be sustained. When a musician knows that the more air time his work gets, the more income he earns, which is timeless as music content utilisation by broadcast stations and some recreational centres use works that have mass appeal. artistes and producers, based on this, are challenged to produce good works that have followership,” he said.
