Nollywood’s $6.4 Billion Boom Faces Threat Without Tougher IP Laws, Warns EbonyLife Lawyer

Nollywood’s $6.4 billion industry at risk without stronger IP laws – EbonyLife lawyer 

The Nollywood film industry has blossomed into a $6.4 billion powerhouse, captivating audiences worldwide with its rich cultural narratives and blockbuster productions.

However, beneath the glamour and success lies a series of ongoing legal and financial challenges that threaten the sector’s growth.

Issues such as intellectual property theft, miscredited contributions, and inadequately constructed contracts quietly erode the earnings and rights of both creatives and investors, limiting Nollywood’s true potential.

In an exclusive discussion, Nairametrics sat down with Omotayo Inakoju, a leading female legal expert in Nigeria’s entertainment sector and the Head of Legal at EbonyLife Group. Her extensive experience includes collaborations with major studios like Netflix, BBC Studios, and Sony Pictures.

Omotayo outlines strategic approaches to safeguarding creative ownership, avoiding expensive intellectual property conflicts, and attracting sustainable investment. She emphasizes the importance of robust IP legislation, specialized entertainment courts, and international agreements as vital tools to protect talent, expedite legal processes, and ensure Nollywood’s continued success over the coming decade.

For those interested in a deeper understanding of Nollywood beyond its commercial achievements, this interview offers a rare glimpse into how legal reforms could transform African storytelling’s future.

Nairametrics: Omotayo, could you share what inspired you to pursue entertainment law and how your career path led you to EbonyLife Films?

Omotayo: To be honest, entertainment law wasn’t even on my radar after law school. While pursuing my Master’s degree in Lagos, a friend introduced me to a role as a Legal Officer at Silverbird, where I spent seven years. My responsibilities covered cinema operations, film distribution, media, and even real estate, which gave me a comprehensive view of the film business.

Gradually, I became intrigued by the processes that happen before a film hits the big screen-how productions are managed legally. This curiosity pushed me to delve into film production, study contracts, and learn directly from producers.

I realized that while many lawyers specialized in music law, very few focused on film law. I chose to fill that niche, a decision that shaped my career and eventually brought me to EbonyLife Films, where I now blend legal expertise with creative storytelling.

Nairametrics: With Nollywood’s rapid expansion, intellectual property theft has become a growing concern. What are the most frequent IP infringements you encounter?

Omotayo: Over nearly a decade practicing film law, I’ve noticed two predominant types of IP violations in Nollywood.

First is the unauthorized use of ideas and adaptations. Since storytelling is the heart of our industry, concepts often circulate quickly, and sometimes multiple producers develop similar projects simultaneously. Many conflicts arise because proper rights acquisition is overlooked. For example, adapting a novel without the author’s consent constitutes copyright infringement, even if the story is transformed into a different format.

Second is the issue of credit attribution. Proper credit is not merely a courtesy; it is a legal entitlement. When writers or crew members are denied rightful acknowledgment, it’s a violation, not a simple mistake. Recognition and payment go hand in hand.

These two challenges-unauthorized use and lack of credit-are the most common. As Nollywood continues to grow, it’s crucial for creators to recognize that protecting intellectual property involves more than contracts or finances; it’s about honoring every individual’s creative input that brings a film to life.

Nairametrics: Have you been involved in any notable or complex copyright infringement cases? What were the implications?

Omotayo: Yes, I’ve managed several infringement disputes. One memorable case involved a website streaming my client’s film without any licensing or distribution agreement. Imagine discovering your movie online on a platform you never authorized-that’s a shock many filmmakers face.

Similar public incidents have occurred, such as when actress Bimbo Ademoye publicly challenged a Ghanaian TV station for broadcasting her films without permission. Unauthorized uploads are rampant on platforms like YouTube and Telegram.

The initial step is to collect evidence about the infringing platform, including company details and broadcast dates. Then, a takedown request is issued. If ignored, a formal legal notice follows. In my client’s case, threatening to report the site to its hosting providers led to the film’s removal. Otherwise, litigation becomes necessary.

The greatest loss is financial-piracy undermines exclusivity and reduces legitimate revenue. It also strips creators of control, recognition, and peace of mind. Legal proceedings are often lengthy, costly, and emotionally draining, and even successful outcomes rarely compensate for the full extent of the damage.

Nairametrics: Many emerging creatives fear their ideas might be stolen. What immediate legal precautions can they take before sharing scripts or concepts?

Omotayo: A major problem is that many creatives focus solely on their art, neglecting the legal and business aspects.

For example, a scriptwriter once approached me for representation and deal negotiation. My first question was, “Is your business registered with the Corporate Affairs Commission (CAC)?” He was surprised and asked, “I’m a scriptwriter; why would I need that?”

This highlighted how many creatives are unaware of basic legal necessities like CAC registration, which is essential for accessing funding such as grants or loans, as investors require proof of legitimacy.

Similarly, many monetize their work without securing or identifying their intellectual property rights. Simple measures like registering IP or drafting clear contracts are often overlooked.

Nairametrics: Are there shortcomings in Nigeria’s current intellectual property laws that complicate protecting film-related creative works?

Omotayo: Absolutely. Nigeria’s copyright legislation has been updated to include both physical and digital content, enabling creators to request takedowns from platforms like YouTube and Instagram when their work is used without authorization. However, the main limitation is jurisdictional-copyright protection is territorial. While Nigerian creators can enforce rights domestically, it’s challenging when infringement occurs abroad.

Additionally, technology advances faster than legislation. For instance, there are no definitive global standards on ownership or liability for AI-generated content. Courts in countries like the US and UK rely on case law rather than statutes, and Nigeria faces similar uncertainties.

Enforcement is another weak point. Legal disputes can drag on for years, by which time the value of the content has diminished. So, despite progress in the law, enforcement mechanisms, international protections, and adapting to technological changes remain significant hurdles.

Nairametrics: From your experience, which contract clauses are frequently neglected in Nollywood and music agreements but are essential?

Omotayo: Several critical clauses are often missed in both film and music contracts.

In music, it’s vital to clearly define rights and responsibilities. Artists should know how many albums they’re expected to produce and what financial or promotional support the label must provide. Ownership clauses must explicitly state who holds the rights-the artist, the label, or both.

Audit and record-keeping clauses are frequently ignored. Without audit rights, artists cannot verify royalty payments. For example, if a label reports earnings of N600,000 when the actual revenue is N2 million, the artist has no way to challenge it. Reversion and buyout clauses are also important. A reversion clause allows rights to revert to the artist after a set period, while a buyout clause permits early repurchase, as seen in cases like Kiss Daniel’s.

Film contracts vary widely-covering scriptwriters, co-productions, financing, actors, and crew. Each must clearly outline ownership, rights, and consent. Skipping legal review often leads to unfavorable terms. Many creatives sign deals without fully understanding what they’re relinquishing. Every contract, regardless of size, deserves thorough legal scrutiny.

Nairametrics: What warning signs should filmmakers or actors be alert to before agreeing to production, distribution, or streaming contracts?

Omotayo: Protecting your intellectual property is paramount. If you originated the idea, ensure you’re not unknowingly transferring your rights. Be cautious of contract terms like “sell,” “assign,” or “transfer” if you don’t intend to relinquish ownership. Scrutinize any clause suggesting your creative rights are being handed over.

Payment terms must be transparent. Know exactly when and how you’ll be compensated. Avoid vague arrangements. Ideally, payments should be staggered-initial payment upon contract signing, another at production start, and the final one upon completion-to prevent delays or disputes.

Credit is equally crucial. Your contribution should be accurately acknowledged, reflecting your true role. Miscrediting can harm your reputation and future prospects.

Lastly, prioritize safety and welfare on set. Confirm that the working environment is secure and that insurance, medical support, and security measures are in place, especially when filming in hazardous locations. Your well-being is essential to sustaining your career.

Nairametrics: What legal incentives or protections would you recommend to encourage more investment in Nollywood productions?

Omotayo: Investment concerns in film mirror those in other sectors-protecting capital requires strategic planning.

As an investor, I would first seek a deep understanding of the film business, including monetization channels like digital platforms and applicable taxes or recoupable expenses.

Conducting due diligence on producers is critical. Assess their track record, past film performance, and treatment of previous investors to gauge reliability.

Contracts must be airtight. Clarify whether your investment is equity or debt, understand the return structure, and know if earnings are calculated before or after costs. Also, identify revenue sources-cinema, digital, or other streams.

Moreover, the industry would benefit from formalized investment policies. Clear regulations on investor eligibility and fund allocation would reduce risks. Currently, the market is largely unregulated, relying on negotiation rather than structured safeguards.

Nairametrics: If you had a brief moment to advise the Minister of Arts, Culture & Creative Economy, what three legal reforms would you prioritize to strengthen Nollywood?

Omotayo: Opening access to international resources is vital. Signing more bilateral and multilateral treaties would allow creatives to tap into facilities and collaborations beyond Nigeria.

Integrating intellectual property into national economic strategies is another priority. This would enhance protection, establish monetization frameworks, improve enforcement, and attract investment.

Finally, creating specialized entertainment tribunals would be transformative. Like industrial tribunals that handle labor disputes, dedicated courts for music, film, and entertainment cases would speed up justice delivery and reduce backlog.

Additionally, digital protection mechanisms are essential. A centralized, fully digital registry where creators can verify ownership and track rights transfers would provide a transparent digital footprint. Integrating tools to monitor unauthorized online use would enable swift enforcement against infringement, ensuring creators receive fair compensation.

Nairametrics: Looking forward, how do you envision Nollywood’s legal landscape evolving over the next decade, and what is your greatest aspiration for film law and creative rights in Nigeria?

Omotayo: I envision a more organized and regulated Nollywood, where challenges are addressed systematically rather than ignored. In countries like the US and UK, strong industry associations provide clear governance and authority, which we currently lack.

My hope is for Nollywood to develop a unified structure that represents the industry’s interests and enforces comprehensive policies, rather than leaving individuals to navigate the system alone. I also look forward to dedicated film industry legislation.

At present, we rely on broad copyright and trademark laws that don’t fully address filmmaking’s unique needs. I anticipate these changes within the next five years. Though it may seem distant, I firmly believe a well-regulated Nollywood is on the horizon, one that operates with transparency, fairness, and robust protection for all creatives.


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