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MTN Says It Won’t Pay The N1.04 Trillion, As Fed. Govt. Slaps It With Copyright Violation

MTNThe MTN Group has said that it had asked its Nigerian subsidiary not to pay the N1.04 trillion fine imposed on it by the Nigerian Communications Commission even as the fine has been reduced by the NCC to N780 billion.

This came on the heels of the criminal charges against MTN Nigeria Communication and its Nigeria Chief Executive Officer, Ferdi Moolman, over alleged copyright infringement by the Nigerian Copyright Commission (NCC).

MTN Nigeria was fined N1.04 trillion for its failure to disconnect 5.1 million unregistered Subscriber Identification Module cards. But the fine was later reduced by 25 per cent to N780 billion.

But, MTN said yesterday that it would go to the court to contest the fine.

“Accordingly, MTN has followed due process and has instructed its lawyers to proceed with an action in the Federal High Court in Lagos seeking the appropriate reliefs.”

The Group Public Affairs Manager of MTN Group, South Africa, Chris Maroleng, stressed in a statement said that prior to seeking legal redress, “all factors having a bearing on the matter were thoroughly and carefully considered, including a review of the circumstances leading to the fine and the subsequent letters received from the Nigerian Communications Commission.

“MTN is advised that in the current circumstances in line with the lis pendens rule (pending legal action), the parties are enjoined to restrain from taking further action until the matter is finally determined. This is consistent with previous judicial decisions in Nigeria.”

Maroleng added that notwithstanding the action, the MTN Group would continue to engage with the Nigerian authorities to try to ensure an amicable resolution in the best interests of the company, its stakeholders and the NCC.

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“Shareholders are, therefore, advised to continue to exercise caution when dealing in the company’s securities until a further announcement is made.”

The Public Affairs Director of the NCC, Tony Ojobo, said the commission was yet to receive any court summons on the matter, adding: “When we get it, the NCC will react appropriately.

“The commission is ready for them. When we get the summons, we shall meet them in court.”

Meanwhile, the copyright violation charge, with number ABJ/CR/379/2015,  has been filed today by the NCC in the Federal High Court, Abuja.
In the two-count-charge signed by NCC Prosecutor and Copyright Inspector, Marypauline Olere-Luma, MTN and Moolman were alleged to have infringed on copies of the musical work of an Abuja based musician, Dovie Omenuwoma-Eniwo (aka Baba 2010).
The defendants were alleged to have distributed, sold or let for hire or for the purposes of trade or business, exposed or offered for sale 3,009 infringing copies of the musical work of Baba 2010.
The musical works allegedly infringed upon by the defendants included Omotena, Gentleman, Christian and Unity Song.
The offences, according to the charge, are contrary to and punishable under Section 20 (2)(a) and 20 (2)(b) of the Copyright Act, Cap C28 Laws of the Federation 2004.
No date has been fixed for the hearing of the case. [myad]

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