Nigeria: Suspension of Broadcast Licence - How CTL's Trouble Started

analysis

Lagos — The recent suspension of the broadcasting licence of Communications Trends Limited (CTL) by the National Broadcasting Commission (NBC) on allegation of piracy was not unexpected. It was an action the regulatory body procrastinated on for too long.

Owned by Mr. Uzo udenmba, CTL is one of the early pay TV platforms in Nigeria and about the second after FSTV to be owned by a Nigerian. It first started operations in Lagos with corporate office in Etiebet's Place on Bank Anthony Way, Ikeja before relocating to Port Harcourt and became very popular in the restive South South region.

The suspension which was made public on February 18 but which took effect from February 8 is sequel to a series of petitions alleging that the pay TV has been pirating programmes of other platforms especially, HiTV; an issue which has landed both parties, CTL and HiTV, in the court.

The whole accusation and counter accusation of right infringement started shortly after HiTV launched out into Nigeria's pay TV market with the good news that it has acquired the very popular English Premiership League (EPL ) that was hitherto the exclusive reserve of Multichoice Nigeria, a South African owned station.

Under the aegis of Association of Cable Owners of Nigeria (ACON), HiTV was accused of practicising monopoly by not allowing them to rebroadcast live EPL matches and its other premium sports content such as Carling Cup as well as the big one, UEFA Champions League. ACON went a step further by instituting a suit against HiTV accusing the less than three years old pay TV station of engaging in monopolistic practice. An allegation which HiTV denied by saying that when it secured EPL right, it did offered members of ACON the opportunity to be part of the deal by asking them to pay N3,500 subscription fee per subscriber. But rather than jump at the offer, they insisted that they cannot pay more than N300 per subscriber for a right HiTV committed billions of naira into.

"Even when HiTV brought the fee down to N2,500 per subscriber and with the condition that each station must be able to pay for 5,000 subscribers, they still held on to their N300 or no deal position," a source close to both ACON and HiTV and who was knowledgeable about the negotiation said.

But in what looked like the proverbial strike the shepherd and the sheep will scamper, HiTV sued CTL, the main force behind ACON, accusing it of pirating its premium sporting contents; an allegation which CTL denied in strong terms and which led the court to order both parties to maintain status quo ante belum which HiTV thought was a relieve because it had lost close to N 5 billion as a result of the alleged piracy.

However, rather than abide by the status quo belum directive of the court, CTL still indulged in the unauthorised rebroadcast of HiTV sporting programmes which led to the antipiracy raids simultaneously executed on January 27 on CTL outlets in six states of the federation namely Lagos, Delta, Imo, Edo, Enugu and Rivers states by the Nigerian Copyright Commission (NCC).

According to a release issued by NCC's Assistant Director, Public Affairs, Vincent Oyeweso, "HITV had in October last year petitioned the Commission, alleging unauthorised broadcast of its EPL and UEFA matche contents protected by copyright which infringement actions by some cable operators, including CTL, amounted to piracy. The Commission's consequent investigation confirmed the allegation of broadcast piracy in a number of cities across the country.

"At the NCC Headquarters in Abuja in December last year, the CEO of CTL, Mr Uzo Udemba denied allegations of his company's involvement in the unauthorised broadcast of HITV's EPL and UEFA matches. He was warned to desist from further illegal broadcast of copyright-protected contents of other broadcasting companies, especially those of HITV in issue.

"The NCC again in January this year received another complaint from HITV accusing CTL of continual piracy bordering on live broadcasts of its sports contents of EPL and UEFA matches in its (CTL's) operational cities. This triggered a fresh round of investigations which revealed persistent piracy of HITV's broadcast rights by CTL. NCC's surveillance revealed that CTL has at least an administrative office in each of its operational cities, where some decoders and smart cards were positioned. These were, however, aptly interpreted as dummies or decoys calculated to distract the Commission's operatives who on further investigation, unearthed other premises which served as CTL's transmitting centres where illegal broadcasts were being perpetuated, in most instances several kilometres away from its administrative offices.

"Consequently on the morning of January 27, 2010, copyright inspectors launched a massive enforcement intervention on CTL facilities in the six states of Lagos, Delta, Imo, Edo, Enugu and Rivers where the acts of copyright infringement were allegedly being committed with impunity. Seizures and arrests were made during the raid.

"It is instructive that in spite of the simultaneous enforcement actions against CTL, the company in a brazen demonstration of defiance of the Law, again indulged in illegal live broadcasts of EPL matches in Owerri, Port Harcourt and Lagos on the very night of the operation, indicating that the CTL premises earlier raided were not the main transmitting centres in the three affected cities. This has prompted a continuation of enforcement operation against CTL in those three cities," the released dated February 17 said.

During the raid, copyright Inspectors impounded equipment and documents adjudged to be devoted to the commission of the crime at the seven CTL business outfits (two of which are based at its Lagos operational headquarters) and arrested their station managers along with some support staff of the company.

Among those arrested on that day were Mr. Ezeabasim Chisom in charge of CTL office on Sakponba Road, Benin City; Mr. Chibuzor Onyenuforo who mans CTL House at 206/208, Aba Express Way in Port Harcourt; Mr. Samuel Chigbu of CTL office at No. 30, Wetheral Road, Owerri; Mrs. Chris Owaegbu of CTL office at No. 1, Enerren Junction, Warri in Delta State and Mr. Azubuike Echeonwu of CTL office at No. 50, Zik Avenue, Uwani, Enugu.

Interestingly, HiTV is not alone in this allegation of piracy against CTL. Last September, Orbit Showtime, the largest pay TV platform in the Middle East and North Africa petitioned the Minister of Information and Communications, Professor Dora Akuyili, alleging that CTL has been pirating its content.

The petition dated September 21, 2009 and entitled "The Illegal Use of Showtime Decoders and Smartcards for Piracy of the Barclays English Premier League Matches in Nigeria" was signed by Orbit Showtime's director of legal.

In the petition Orbit had complained bitterly saying "Orbit Showtime is the largest PayTV platform in the Middle East and North Africa and is the exclusive licensee in that region for the Barclays Premier League ('Premier League') for the 2009/2010 season. We understand that a number of cable operators (as specified below) and distributors located in various parts of Nigeria have obtained our smartcards to use for the unauthorised broadcast of the Premier League matches in Nigeria - a territory that Orbit Showtime is not licensed to operate in and has no rights to broadcast Premier League matches."

Orbit specifically fingered CTL and other cable companies like Metrodigital Cable Television, Delta Tele-Kommunications Limited, Hashtronics Nigeria Limited, Modern Communications Limited, Multimesh Communications Limited and passionately appealed to the minister to immediately investigate such unauthorised retransmission or access of Orbit Showtime's Premier League matches with a view to ceasing any such activities in Nigeria.

The same last year, the organisers of the EPL had also written to the minister of information, through Phil Lines, director of Media Operations and International Broadcasting, complaining about the alleged infringement on their rights by some cable outfits.

And until the decisive action of NBC on CTL, piracy has been the major scourge of pay TV business in this part of the world. With HiTV having the premium sports and entertainment content, investigations revealed that it has becom an easy target.


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