Moreplex Television Limited v. MultiChoice Nigeria Limited & Others

Moreplex Television Limited v. MultiChoice Nigeria Limited & Others

NIPJD Citation	NIPJD/FHC/2024/PH-CS-129-2023
Document Type	Judgment
Court	Federal High Court of Nigeria, Port Harcourt Judicial Division
Suit No.	FHC/PH/CS/129/2023
Decision Date	8 March 2024
Jurisdiction	Nigeria
Judge	Hon. Justice Phoebe M. Ayua
Subject Area	Broadcasting Law; Competition; Channel Sub-Licensing; Nigerian Broadcasting Code
Status	Appealed

BETWEEN

MOREPLEX TELEVISION LIMITED
Plaintiff

AND

MULTICHOICE NIGERIA LIMITED
NATIONAL BROADCASTING COMMISSION
THE HONOURABLE MINISTER OF INFORMATION AND CULTURE
Defendants

Case Summary

Broadcasting Law, Competition, Channel Sub-Licensing and Exclusivity – The Federal High Court held that MultiChoice Nigeria Limited’s continued refusal to sublicense requested television channels to Moreplex Television Limited was unlawful and constituted a breach of the Nigerian Broadcasting Code, 6th Edition (as amended). The Court also held that the National Broadcasting Commission’s failure or neglect to issue directives or impose sanctions on MultiChoice amounted to a dereliction and breach of its statutory duty. The Court ordered MultiChoice to sublicense the requested channels to Moreplex at prorated charges, ordered the NBC to issue directives to MultiChoice, and awarded Moreplex ₦200 million in general damages.

I. Facts

Moreplex Television Limited commenced the action by an Originating Summons dated 6 July 2023 and filed on 7 July 2023 against MultiChoice Nigeria Limited, the National Broadcasting Commission (NBC), and the Honourable Minister of Information and Culture.

The dispute arose from Moreplex’s request to MultiChoice for the sublicensing of certain television channels. Moreplex alleged that MultiChoice continually refused to sublicense the requested channels despite provisions of the Nigerian Broadcasting Code, 6th Edition (as amended), regulating channel sublicensing and exclusivity.

Moreplex also complained to the NBC concerning MultiChoice’s conduct. It alleged that the NBC failed or neglected to issue appropriate directives or impose sanctions on MultiChoice for the alleged breach of the Broadcasting Code.

Moreplex contended that the actions of MultiChoice and the failure of the NBC to enforce the Code caused damage and frustration to its direct-to-home (DTH) broadcasting business.

The Plaintiff consequently approached the Federal High Court seeking declaratory and injunctive reliefs, an order compelling MultiChoice to sublicense the requested channels, an order directing the NBC to take regulatory action, and ₦500 million in general damages.

The 1st Defendant opposed the Originating Summons and urged the Court to dismiss the suit. The 2nd Defendant also filed counter-affidavits opposing the action.

II. Reliefs Sought

The Plaintiff sought, among other reliefs:

A declaration that the continued failure and/or refusal of the 1st Defendant to sublicense the requested channels to the Plaintiff was unlawful and a breach of the clear provisions of the Nigerian Broadcasting Code, 6th Edition (as amended).
A declaration that the failure and/or neglect of the 2nd Defendant, as a regulatory body, to issue directives or impose sanctions on the 1st Defendant for its breach of the provisions of the NBC Code amounted to dereliction and breach of statutory duty and caused damage and frustration to the Plaintiff’s business.
An order compelling the 1st Defendant to sublicense the requested channels to the Plaintiff at the stipulated prorated charges for retail pursuant to sections 9.1.1.3 of the NBC Code, 6th Edition (as amended).
An order compelling the 2nd Defendant to issue directives on the Plaintiff’s report of breach of the Code against the 1st Defendant pursuant to sections 9.1.1.8, 9.1.1.9 and 9.1.1.11 of the NBC Code, 6th Edition (as amended).
₦500,000,000 general damages jointly and severally against the Defendants for the losses and frustrations of the Plaintiff’s business occasioned by the Defendants’ breach of the NBC Code.
An order of perpetual injunction restraining the 1st Defendant, either directly or through its agents and/or hirelings, from harassing, frustrating or interfering with the Plaintiff’s business.
10% post-judgment interest on the judgment sum from the date of judgment until final liquidation.

III. Issues Before the Court

The principal issues before the Court were whether:

MultiChoice’s continued refusal to sublicense the requested channels to Moreplex was unlawful and in breach of the Nigerian Broadcasting Code, 6th Edition (as amended);
the NBC’s failure or neglect to issue directives or impose sanctions on MultiChoice in respect of the alleged breach amounted to a dereliction or breach of its statutory duty; and
Moreplex was entitled to the declaratory, mandatory, injunctive and monetary reliefs sought.

IV. What Was Held

The Federal High Court found in favour of Moreplex Television Limited.

Refusal to Sublicense Channels

The Court declared that the continued failure and/or refusal of MultiChoice Nigeria Limited to sublicense the requested channels to Moreplex was unlawful and constituted a breach of the Nigerian Broadcasting Code, 6th Edition (as amended).

NBC’s Failure to Enforce the Broadcasting Code

The Court further declared that the failure and/or neglect of the National Broadcasting Commission, as the regulatory body, to issue directives or impose sanctions on MultiChoice for the breach reported by Moreplex amounted to a dereliction and breach of its statutory duty.

The Court held that this failure caused damage and frustration to Moreplex’s direct-to-home broadcasting business.

Order for Channel Sub-Licensing

The Court ordered MultiChoice Nigeria Limited to sublicense the requested channels to Moreplex Television Limited at the stipulated prorated charges for retail pursuant to section 9.1.1.3 of the Nigerian Broadcasting Code, 6th Edition (as amended).

MultiChoice was ordered to comply within 21 days.

Order Directing NBC to Act

The Court ordered the National Broadcasting Commission to issue directives on Moreplex’s report of MultiChoice’s breach of the Code pursuant to sections 9.1.1.8, 9.1.1.9 and 9.1.1.11 of the Nigerian Broadcasting Code, 6th Edition (as amended).

The NBC was also ordered to comply within 21 days.

General Damages

Although Moreplex sought ₦500 million in general damages, the Court awarded ₦200 million jointly and severally against the Defendants for the losses and frustration to Moreplex’s business occasioned by the Defendants’ breach of the Nigerian Broadcasting Code.

Post-Judgment Interest

The Court awarded 10% post-judgment interest on the judgment sum from the date of judgment until final liquidation.

V. Outcome

Judgment entered in favour of the Plaintiff.

The Court:

declared MultiChoice’s continued refusal to sublicense the requested channels unlawful and in breach of the Nigerian Broadcasting Code;
declared the NBC’s failure to take regulatory action a dereliction and breach of its statutory duty;
ordered MultiChoice to sublicense the requested channels to Moreplex within 21 days;
ordered the NBC to issue the appropriate regulatory directives within 21 days;
awarded Moreplex ₦200,000,000 in general damages, jointly and severally against the Defendants; and
awarded 10% post-judgment interest from the date of judgment until final liquidation.

The Court did not reproduce the Plaintiff’s requested perpetual injunction among the final orders granted.

Appearances

A. Nworgu, Esq., with O. G. Onwuka and B. Olujide, for the Plaintiff/Applicant; I. D. Wariboko, Esq., with H. G. Kpokor, Esq., for the 1st Defendant; A. P. Deekia, Esq., for the 2nd Defendant.

Subsequent Proceedings

MultiChoice Nigeria Limited appealed against the Federal High Court judgment.

Subsequent reports indicate that disputes continued over the implementation and enforcement of the judgment, including whether Moreplex’s distribution of the affected channels amounted to execution of the subsisting Federal High Court judgment and related NBC directives. MultiChoice’s application for a stay of execution and its appeal also became part of the continuing dispute.

The substantive validity of the Federal High Court judgment is therefore subject to the outcome of the appellate proceedings.

Significance

The decision concerns the enforcement of the Nigerian Broadcasting Code’s provisions governing channel sublicensing and exclusivity in Nigeria’s broadcasting industry.

The judgment is particularly significant because the Court not only found the broadcaster’s refusal to sublicense the requested channels unlawful but also found that the broadcasting regulator’s failure to enforce its own regulatory framework amounted to a breach of statutory duty.

The case also raises broader questions concerning competition, exclusivity in television content distribution, the regulatory powers and obligations of the National Broadcasting Commission, and the relationship between private broadcasting rights and regulatory requirements imposed on licensed broadcasters.

Moreplex Television Limited v. MultiChoice Nigeria Limited & Others

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