COSON FLOORS FIRST BANK & NCC AT LAGOS HIGH COURT OVER UNAUTHORIZED FREEZING OF ACCOUNT

An Ikeja High Court Judge, Justice Y.R. Pinheiro has this Tuesday, May 14, 2019 struck out the Interpleader Action brought by First Bank (Nig.) Ltd against COSON over the freezing of the bank accounts of Copyright Society of Nigeria (COSON) by First Bank. By the decision of the court, COSON has regained full access to all its funds at First Bank.

COSON’s counsel, Mr. James Ononiwu of the Whitedove Solicitors had applied to the court to strike out the Interpleader action of First Bank saying that the bank did not disclose any cause of action in the suit and that the court lacked jurisdiction to entertain the suit.

In her judgment, the learned trial judge agreed with Mr. Ononiwu that the court lacked jurisdiction to entertain the matter as no real dispute between the officers of COSON had been established by First bank.. She discountenanced the counter affidavit of the Nigerian Copyright Commission stating that her court had no jurisdiction to entertain the issues of copyright brought by the NCC.

In opposing the First Bank summons, the General Manager of COSON, Mr. Chinedu Chukwuji in his affidavit stated that COSON is a private company limited by guarantee and not a government agency and that First Bank without any lawful order of court froze the accounts of COSON purportedly as a result of a letter from the Nigerian Copyright Commission (NCC) when the bank knows that the NCC is not a court of law and does not have any powers under the law to give any directives to freeze the accounts of COSON and that the NCC is not in a position to determine who the signatories to the bank accounts of COSON should be.

There was wild jubilation at COSON House in Ikeja following the judgment. Celebrating the judgment, COSON Chairman, Chief Tony Okoroji who was in court when the judgment was read said, “At COSON, we are taking the Nigerian nation through an important civics lesson. The fulcrum of that lesson is that in a democracy, no one, no matter how big, is above the law, whether you are Frist Bank, NCC or whatever else. I know that before now many people had made many assumptions not backed by facts or by the law. We are patiently using the courts to define the truth. The courts are answering the questions. Those who know me well know that I am a great believer in the rule of law and the legal system. COSON was built on the foundation of the rule of law. I firmly believe that the recent legal developments will make the powers of everyone clearer and our industry more professional and stable. I call on COSON members wherever they are to celebrate. The victory is yours. I am confident that the decision places us in a better position to generate more solid income for the practitioners and the nation for many years to come. It takes a lot of patience to do what we are doing. I am humbled to be part of this process”.

PRETTY OKAFOR AND PREMIER MUSIC’S TOJU EJUEYITCHIE IN BIG TROUBLE! AS COSON LAWYERS DEMAND =N=150 MILLION DAMAGES FROM THEM AND IVORY MUSIC FOR THE FREEZING OF COSON BANK ACCOUNTS OBTAINED FRAUDULENTLY

These are not the best of times for self-styled music man, Pretty Okafor who with Toju Ejueyitchie of Premier Music and Ivory Music in December 2018, went behind the backs of the leadership of Copyright Society of Nigeria (COSON) to obtain an ex-parte court injunction to freeze the bank accounts of COSON, the nation’s most admired organization in the creative industry.
On February 6, 2019, the tables were turned at the Federal High Court Lagos as Hon Justice Mohammed Hassan did not only discharge the ex-parte order, but struck out the entire case of Pretty Okafor, Toju Ejueyitichie’s Premier Music and Ivory Music. According to the judge, there was significant suppression of facts in the application based on which the order was granted and the court lacked jurisdiction to even hear the case. The decision of the judge has attracted wide jubilation among the members of COSON across the nation.
The big problem is that to obtain the discarded injunction, Pretty Okafor in his name and on behalf of Premier Music and Ivory Music swore to an affidavit in which they entered into an undertaking that they will pay damages to COSON if at the end of the day, it is determined that the injunction ought not to have been granted.
Now, the hunters have become the hunted. COSON lawyer, James Ononiwu of the famed Ikeja based law firm of the Whitedove Solicitors has written to Pretty Okafor, Premier Music and Ivory Music demanding from them the sum of =N=150 Million Naira in damages in accordance with their undertaking.
In the letters dated February 12, 2019, Mr. Ononiwu wrote, “There is no question that the Interim Orders of Mareva Injunction obtained by you and referred to herein ought not to have been granted as it was obtained fraudulently, with significant suppression and concealment of facts and is a product of a terrible abuse of the processes of the Federal High Court.
“As a result of the said Interim Orders of Mareva Injunction of 30th November, 2018, resulting in the freezing of the 1st Defendant’s bank accounts in Diamond Bank Plc, First Bank of Nigeria Ltd and United Bank for Africa Plc, the 1st Defendant has been subjected to a harrowing period and has suffered severe damages”
Mr. Oniniwu enumerated the damages to include the inability to pay staff salaries and allowances for a significant period including the Christmas Period of 2018 and New Year, 2019 and the mental anguish suffered by the over 4,000 members of COSON whose royalties remained unpaid as at the time due.
According to the COSON lawyer, “Consistent with the undertaking entered by you for damages, a condition under which the said orders were made, our client by this letter demands from the Plaintiffs the sum of =N=150,000,000.00 (One Hundred and Fifty Million Naira) jointly and severally as damages for the Interim Orders of Mareva Injunction of 30th November, 2018 which you obtained against our clients fraudulently, with significant suppression and concealment of facts and which is a product of a terrible abuse of the processes of the Federal High Court”.
In conclusion, Mr. Ononiwu wrote, “Be informed that if within fourteen days of the receipt of this letter, you fail, neglect or refuse to meet the demands of our client, our instructions are to use every process known to law to ensure that you meet your obligations to our clients

FEDERAL HIGH COURT ORDERS THE RE-OPENING OF ALL FROZEN COSON ACCOUNTS AS THE SUIT FILED BY PRETTY OKAFOR AND PREMIER MUSIC IS THROWN OUT.

Mr. Justice Mohammed Hassan of the Federal High Court Lagos, on Wednesday, February 6, 2019 ordered the re-opening of all bank accounts of Copyright Society of Nigeria (COSON) at United Bank for Africa (UBA), Diamond Bank PLC and First Bank of Nigeria, frozen as a result of an interim order issued by him on November 30, 2018. The judge also struck out Suit No. FHC/L/CS/1819/2018 brought by Premier Music Publishing Ltd, Pretty Okafor and one other saying that his court lacked jurisdiction to hear the suit as there was a subsisting order of the Federal High Court on the matter.

On December 17 when the application to have the order of Justice Hassan vacated, was moved by COSON lawyer, Mr. Uche Val Obi SAN, the senior advocate drew the attention of the court to the fact that Pretty Okafor, one of the plaintiffs who deposed to the affidavit upon which the ex-parte order was obtained, did not disclose to the court that while he was a member of a defunct musical group called “Junior & Pretty”, he had never at any time applied to be a member of COSON, never been granted membership of COSON, does not possess a membership number, membership certificate or membership card of COSON, has not assigned any copyright to COSON and has no voting rights in any meeting of COSON and no interest in the funds of COSON.

The senior advocate also drew the attention of the court to the fact that Mr. Okafor did not disclose the existence of Suit No ID/ADR/903/18 filed on the 22nd of May, 2018 against him by the Chairman of the Board of COSON, Chief Tony Okoroji in which Chief Okoroji is claiming the sum of six hundred million naira for malicious lies and serial defamation published by Mr. Okafor, a suit to which Mr. Pretty Okafor had not filed any defence.

Mr. Obi went ahead to remind the court that COSON has well over 4,000 members across the country made up of Nigeria’s foremost songwriters and performers who have interest in the funds of the society and who had not authorized the Plaintiffs whom he described as forming less than 0.075% of the COSON membership to bring the court action and that none of the over 150 reciprocal representation partners of COSON across the world was in support of the suit and that the plaintiffs lacked locus to bring the action.

The court was also told that the Extra-Ordinary General Meeting of COSON had been fixed and widely publicized to hold on December 18, 2018 and that the injunction was a devious plan by the plaintiffs to starve COSON of funds, abort the extra-ordinary general meeting and deny the thousands of innocent COSON members their earned royalties planned to be made available to them at the EGM.

In the affidavit in support of the application, it was deposed to that Mr. Toju Ejueyitchie, the Managing Director of Premier Music, the 1st Plaintiff in the case, was a member of the Management Board of COSON and failed in his attempt to be re-elected to the Board and has since then been antagonistic to COSON and has repeatedly written petitions upon petitions against COSON and despite the fact that an overwhelming majority of the members of COSON resent their plans and strategies, the plaintiffs have become obsessed with their desire to control COSON.

The attention of the court was drawn to the fact that COSON was practically unknown and given little chance of survival about eight years ago but as a result of focused and dedicated leadership, the organization has grown in leaps and bounds, attracting the bitterness and acquisitiveness of some like the plaintiffs who have relentlessly attacked and distorted the records of the organization with every instrument they can muster.

The court was also told that as proof of the malice behind the action of the plaintiffs, immediately after obtaining the injunction, they rushed to the banks and ensured the service of the order on all the banks but made sure that COSON was not served. COSON only discovered that all its bank accounts had suddenly and mysteriously been shut down and every road block set up to prevent it from processing and filing a proper application to discharge the order.

Several members of the COSON Board as well as the COSON General Counsel were in court when the decision was read. Reacting to the court decision, COSON Chairman, Chief Tony Okoroji who was in court when Justice Hassan read his detailed ruling said that he was happy with the judge’s understanding of the issues. He said that he was touched by the calmness with which the members of COSON had endured the trauma they had been forced to go through and said that every step would be taken to ensure that all outstanding royalties are sent to their rightful owners without delay.

The Plaintiffs were represented in the case by Dr. Adewale Olawoyin SAN.

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BREAKING NEWS!!! COSON MEMBERS CELEBRATE EZEKUDE’S FINAL EXIT FROM THE COPYRIGHT COMMISSION

For thousands of members of Copyright Society of Nigeria (COSON) and hundreds of staff of the Nigerian Copyright Commission, Thursday December 6, 2018 was a day of celebration as news broke that the tenure of the very controversial Director-General of the Nigerian Copyright Commission, Mr. Afam Ezekude had come to an abrupt end.
Ezekude who for several months was locked out of his Federal Secretariat Abuja office by the protesting staff of his commission on allegations of massive corruption and poor leadership was forced to leave as a result of a Federal government directive.

At COSON House in Ikeja, the headquarters of the continent’s most progressive copyright collective management organization, the news was received with significant cheers and prayers that the Nigerian creative industry not witness the likes of Afam Ezekude again.

Many COSON members condemned Mr. Afam Ezekude who they claim spent a good part of his tenure creating confusion, degrading the NCC and acting as a sworn adversary of COSON which has witnessed tremendous growth despite Ezekude’s antagonism, meddling and harassment.

Reacting to Ezekude’s departure from the NCC, COSON Board member and immediate past President of the powerful Music Label Owners and Recording Industries Association of Nigeria (MORAN), Hon John Ewelukwa Udegbunam, said, “Afam Ezekude allowed himself to be misled. He showed very poor judgment in his decision to engage in the unproductive fight against COSON. He should have understood that COSON has become a popular mass movement from which musicians across the country benefit. His most shameful act, in my opinion, was his vigorous and ultimately failed attempt to suspend the ability of COSON to collect royalties on behalf of Nigerian musicians. The other, is what I consider, his ill-advised trumped up criminal charge against COSON and the Chairman, Chief Tony Okoroji, easily, Nigeria’s most consistent and most widely respected campaigner for the respect of the rights of creative people whose unrelenting campaign led to the setting up of the NCC itself. I hope Ezekude’s successors have learnt a lesson and will quickly make peace with COSON. Is it not instructive that Afam Ezekude is gone and Chief Tony Okoroji remains the Chairman of COSON?

Ace drummer, Richard Cole, another member of the COSON Board in reaction said, “the fact that Ezekude is gone should not end the investigations into the alleged enormous corruption against him. People in the creative industry want to know what happened to the millions of Naira invested by the Federal Government in the NCC which Ezekude left broke and practically comatose. About seven Federal Government DGs have visited COSON House. Ministers, NCCs first DG, first Chairman and stars from around the world have been hosted at COSON House. Is it not stupid that not once did Afam Ezekude step into COSON House built and commissioned during his tenure and which he could have claimed as part of his success. His attempt to promote a new Copyright Act failed like a pack of cards. He was being egged on by paper weights in the industry. He followed them and ended his tenure in unending crisis”.