Understanding the Impact of the Copyright Act on Nigerian Startups

As you might already be aware, just about a month ago, Nigeria’s President Muhammadu Buhari signed into law a new Copyright Act (“Act”) aimed at modernizing the country’s intellectual laws. The new Act replaces the previous one, which had been in place since 1988, and introduces a number of changes that are set to have an impact on various industries. Over the years, startups have been particularly vulnerable to copyright infringement, sometimes with larger or established companies infringing on the intellectual property of smaller firms. Other times, a founder’s idea may be exposed to theft by potential investors the founder had prepared a pitch deck for.

In this newsletter, we take a look at the new Act by exploring the key changes introduced by the Act. We also examine the limitations it poses in protecting their intellectual property and what startups can do to safeguard their innovative ideas.

Background: What You Need to Know about Copyright

As a background to this expose on the new Act- copyright is a legal concept that grants exclusive rights to creators of original works, including literary, musical, artistic, audiovisual, sound recordings, and broadcasts. These rights include the right to print, publish, film, record, reproduce, distribute, display, and perform the work and the right to create derivative works based on the original.

As a startup, protecting your intellectual property helps you stay ahead of the game. When you have a copyright over your work, your ideas and products are shielded from imitators and copycats. But copyright protection does more than just deter others from stealing your ideas - it can also help you monetize your creations and establish your brand. By owning the rights to your original works, you can license them to others, sell them outrightly, or use them to generate revenue in countless other ways. Moreover, copyright protection can help you build a reputation as a thought leader and innovator in your field- distinguishing your startup from the competition and attracting new customers and investors.

Now, to the crux of this Newsletter:

Key Changes in the Copyright Act, 2022

• Section 1 of the Act outlines the types of works that qualify for copyright protection: such types of work are literary, musical, audiovisual, sound recordings, and broadcasts. The newly signed Copyright Act includes cinematography as audiovisual works.
• Section 11 of the Act contains explicit provisions that require the consent of the owner of an audiovisual work before it can be reproduced, broadcasted or distributed for commercial purposes through sale or other transfer of ownership. The Act also expands the scope of the meaning of broadcasting to include making audiovisual work accessible to the public through wire or wireless means, allowing users to access the content independently at any time and from any place. Additionally, the Act establishes a mechanism for the remuneration of owners of sound recordings and audiovisual works for their broadcasting. The mechanism is that remuneration must be proportional to revenue derived from the works.
• Similarly, Section 108 of the Act expands the scope of protection enshrined by the Act to digital content. It is noteworthy to mention that the Act defines a copy as any reproduction in any form, including digital copies. The purpose of this provision is to ensure that online content creators are protected from copyright infringement, as digital copies of their work, such as pictures, videos, and sound recordings, cannot be used without obtaining consent from the originator or creators of such work.
• The Act expanded the definition of copyright infringement to include the unauthorised commercial distribution of copyrighted works through wired, wireless or online means, refusal to pay royalties, and aiding or procuring infringement. It further prohibits circumventing technical measures laid down to regulate access to copyrighted works. Penalties range from fines of N10,000 to N5,000,000 and imprisonment terms of one to five years or both. Copyright violations can be pursued in civil and criminal proceedings and result in reimbursement of profits, damages, or both in civil cases.

These are essentially the most salient changes brought about by the Copyright Act.

As a Founder, How Do You Take Advantage of the Act to Protect Your Works?

As a startup founder, it is important you take proactive measures to protect your innovative ideas and products. Here are some steps you can take to safeguard your intellectual property.

• By virtue of Section 1 of the Copyright Act, your legal rights in the following categories of work are protected: literary, musical, artistic, audiovisual, sound recordings, and broadcasts. Business concepts when expressed in written form, come under the class of literary works and are eligible for copyright protection in Nigeria. So, you can take advantage of this legal protection by registering your written business concepts for copyright.
• Take Steps Towards The Goal: It is easier to prove that an idea was originally yours if you’ve started putting a team together to make it work. Also, endeavour to document your ideas
• Of course, always employ the service of a lawyer in your dealings and activities. It's the best shot you've got to protect your idea from being stolen.

We hope you had a good read! Kindly do us a solid by sharing the newsletter with your colleagues or within your network. Invite them to join the party :). Catch us sharing important information on social media - we're active on LinkedIn, Instagram and Twitter.

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