First Bank Must Pay N61.4m Judgment Sum To MCSN-Court

The  Lagos division of Court of Appeal, has dismissed the appeal of First Bank Plc seeking to reverse the N61.436.548.90million judgment sum awarded against it by a lower court.

The upper court dismissed the bank’s appeal on the ground that it lacks merit.

The three man-panel presided over by Justice Theresa Ngolika Orji-Abadua, also awarded a cost of N200, 000, 00 against First Bank Plc in favour of Musical Copyright Society of Nigeria (MCSN), the respondent in the appeal marked CA/LAG/CV/653/2019.

The group had  in 2016, dragged First Bank Plc before a Lagos High Court, for the bank’s failure to pay MCSN the sum of N61, 436, 548.90 million, collected on its behalf, being copyright license renewal fees, which was due for payment since May 5, 2011.

It asked for an order against First Bank Plc, for payment of  N61, 436, 548.90 million as well as an order for payment of interest at the 21 percent from may 6, 2016, until the entire judgment sum is fully Liquidated.

The bank  challenged the court’s jurisdiction to entertain and determine the suit, on the ground that the suit brought against it was within the exclusive jurisdiction of the Federal High Court.

The bank argued that the respondent, MCSN failed to comply with the provision of Section 17 and 39 of the Copyright Act, Cap. C. 24, Laws of the Federation of Nigeria, 2004.

Delivering ruling on the preliminary objection, the lower court in its ruling on March 20, 2017 held  maintained that it is  very unambiguous that the amount being claimed by the Claimant is copyright license renewal fees,adding that its claim has nothing to do with any allegation of infringement of copyright.

“Thus Section 17 of the Copyright Act is inapplicable. The Federal High Court ruling above referred had laid this issue to rest when it held that Claimant case had nothing to do with copyright infringement as the applicant had been licensed already. So, it is if the Applicant had not been licensed or authorized that section 14 and invariably section 17 of the Court of Appeal may become applicable. Case of Compact Disc Technologies & 2 ors vs. Musical Copyright Society and Court of Appeal decision in Musical Right Society of Nigeria limited vs. NCC (supra) have no bearing on this case. While the former relates to effect of failure to obtain approval of the copyright commission by callecting society on action for infringement of copyright, the latter only addressed the mode of instituting the case therein. I refer in particular two paragraphs 8, 9, 10, 11 and 12 of the claimant’s statement of claim to hold clement possesses the locus standi to institute this case.

“I therefore, dismiss the preliminary objection for being an abuse of Court process, misconceived and completely wasting time”.

Displeased with the lower Court decision, First Bank Plc approached the Appeal Court and filed a Notice of Appeal on March 23, 2017, which was anchored on three issues,including whether the lower Court was right in law when it held that the Respondent had the locus standi to commence the suit for recovery of license fees and as such the conditions prescribed by sections 17 and 39 were inapplicable to the respondent’s claims.

Delivering judgment on the appeal, Justice Theresa Ngolika Orji-Abadua, said the  claims for payment of debts owed by the appellant (First Bank)  to the respondent (MCSN) cannot by any stretch of elongation or interpretation be construed to mean an action for an infringement of copy copyright.

She added :“It is clear that the appellant (First Bank Plc) read section 17 of the Copyright Act out of context and then assumed that the Respondent instituted the action as a Collecting Society.Accordingly, I find no merit in this appeal and hereby dismiss the same with N200,000 costs against the Appellant (First Bank Plc) in favour of the Respondent (MCSN).