Facts:

The appellant is a subscription management company which grants its subscribers access to contents on Digital Satellite Television (popularly known as DSTV) through a decoder. The programming is transnational and covers content from various broadcasting stations.

The respondent is the owner, assignee and exclusive licensee of a body of some musical works over the Nigerian territory. It acquired proprietary interest in major audio-visual works through copyright representation contracts entered by it with Mechanical Copyright Protection Society and Performing Rights Society before the enactment of the current Nigerian Copyright Act.

The respondent demanded for royalties to be paid by the appellant who broadcasted without license some musical works which were part of its repertoire. The appellant refused to pay the sum demanded by the respondent on the ground that its license was revoked by the Nigerian Copyright Commission. Consequent upon which the appellant instituted an action against the respondent at the lower court seeking to stop it from making further monetary demands. In response, the respondent filed its defence accompanied with a counter-claim asserting its right as the owner of those musical works broadcasted by the appellant and also demanded for damages. In its final decision, the lower court struck out the appellant’s claim and granted the respondent’s claims in the counter-claim.

Dissatisfied with the decision of the lower court, the appellant appealed to the Court of Appeal.