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The short answer
A licence lets a foreign buyer use a Nigerian film or recording for a set territory, term and set of media in return for a fee, an advance against royalties, or both; it does not transfer ownership unless it says so. In the UK and US an assignment, and in the US an exclusive licence, must be in writing and signed, so get every deal on paper and spell out how and in which currency you are paid.
Nigerian films and music travel well: streaming platforms, diaspora TV channels, airlines, festivals, broadcasters and sync agencies all license Nigerian content. Whether you are the producer in Lagos, a rights-holder living abroad or a diaspora distributor buying rights, the money depends on two things being right: what the contract grants, and how the payment moves across borders. This guide covers both. It is general information, not legal or tax advice.
Licence or assignment: know which one you are signing
A licence is permission to use the work on stated terms while you keep ownership. An assignment transfers ownership of the copyright, in whole or in part. The difference decides whether you can license the same film to someone else next year.
- UK: section 90(3) of the Copyright, Designs and Patents Act 1988 says an assignment "is not effective unless it is in writing signed by or on behalf of the assignor". A licence granted by the owner binds later owners, except a buyer in good faith without notice (s.90(4)).
- US: the US Copyright Office (Circular 12) treats exclusive licences as transfers, which are valid only in writing signed by the owner. Recording the transfer is voluntary, but where two transfers conflict, the earlier one wins if it was recorded within one month of signing in the US, or two months if signed abroad.
A handshake deal with a diaspora channel may be enforceable as a non-exclusive licence in some places, but it is weak evidence when a dispute comes. Put it in writing.
The terms that decide what you earn
| Term | What to pin down | Why it matters |
|---|---|---|
| Territory | Named countries or regions, not "worldwide" by default | You may want to sell the UK and North America separately |
| Term | Start date, end date, renewal and what happens on expiry | Content that stays on a platform after expiry earns you nothing |
| Media and rights | SVOD, TVOD, free TV, in-flight, theatrical, sync, clips for marketing | Each right can be licensed and priced on its own |
| Exclusivity | Exclusive or non-exclusive, and in which media and territory | Exclusive deals in the US are treated as transfers and must be signed |
| Payment model | Flat fee, minimum guarantee (advance) recouped from royalties, or revenue share | An advance is cash now; a revenue share needs reporting you can check |
| Reporting and audit | Statement frequency, what is deducted before your share, audit right | Without an audit right you cannot test the numbers |
| Currency and tax | Currency of payment, who bears bank charges, withholding tax and the forms needed | Decides what actually lands in your account |
| Delivery | Master files, subtitles, music cue sheets, chain-of-title documents | Buyers often hold payment until delivery is accepted |
Chain of title is where Nigerian films most often stall. A buyer will want proof that the producer owns or controls the screenplay, the music used, and the performances. If a track in the film was not cleared for foreign exploitation, the licence for the whole film can fail.
Music: collecting societies and their timing
For music, much of the income from public performance abroad flows through collecting societies rather than direct contracts.
- A Rosewood Legal guide on Mondaq (7 January 2026) describes the Musical Copyright Society Nigeria (MCSN) as the only collective management organisation recognised for music creators, and says MCSN registers works in other territories and licenses abroad through partnerships. A guest post on IPKat (30 July 2026) reports that COSON's licence has not been renewed since 2019. Check the current position with the Nigerian Copyright Commission before relying on any society.
Overseas performance income usually reaches a Nigerian writer through the society in the country of use and then its partner society, so register works early and keep the metadata (titles, writers, splits) identical everywhere. Our guide to collecting Nigerian music royalties abroad goes further.
Tax on cross-border licence fees
Licence fees for copyright are usually "royalties" for tax purposes, and the country where the payer sits may withhold tax before paying.
- Canada: CRA guide T4061 applies Part XIII tax of 25% to royalties paid to non-residents unless the Income Tax Act or a treaty reduces it; the payer withholds and remits by the 15th of the following month. The non-resident gives form NR301 to claim a treaty rate.
- UK: the UK-Nigeria double taxation convention (1987) caps tax at source on royalties at 12.5% of the gross amount, and its royalty definition includes copyright in films and broadcast tapes.
Worked example (illustration only)
Example: a Toronto streaming service licenses a Nigerian film for Canada for two years with a CAD 10,000 minimum guarantee paid to the Lagos producer. If no treaty rate is claimed, Part XIII at 25% means CAD 2,500 is withheld and CAD 7,500 is paid. If the producer files NR301 and a treaty rate of 12.5% applies (a rate reported by a Mondaq summary, not confirmed on a CRA page for this article), the withholding would be CAD 1,250 and the payment CAD 8,750. The difference of CAD 1,250 is why the tax clause and the form matter before signing.
Withholding certificates or slips from the payer let the recipient claim credit at home where the rules allow. Ask for them every time.
Getting paid in foreign currency
- Name the currency in the contract and who pays sending and receiving bank charges.
- Give the buyer an account in the recipient's own name. A Nigerian company receiving export income should use its own domiciliary account, which also keeps its records clean for tax and for any NEPC programmes.
- Ask the buyer to quote the contract or invoice number in the payment reference so statements reconcile with the royalty report.
- Keep the signed licence, invoices, royalty statements and withholding slips together; they are the evidence a tax office or auditor will ask for.
Where Pryme fits
A Pryme Business Account can be opened from any country and holds USD, GBP, EUR and NGN with local account details for each, so a licence fee can arrive in the currency the contract names and stay there until you choose to convert it; the app shows the rate and the fee before you approve. Invoicing keeps each licence fee tied to its contract. Outside Nigeria, Pryme's activities are carried out through regulated partners.
Questions people ask
Is a licence the same as selling my film rights?
No. A licence permits use on stated terms while you keep ownership. An assignment transfers ownership. Read the grant clause: words like "assign" or "transfer" mean you may be selling the rights.
Do I need a written contract to license Nigerian music to a US company?
For an exclusive licence, yes. The US Copyright Office treats an exclusive licence as a transfer, which is valid only in writing signed by the owner. A written contract is wise for any licence.
Why was tax deducted from my licence fee from Canada?
Canada applies Part XIII tax of 25% to royalties paid to non-residents unless a treaty reduces it. The payer must withhold. Filing form NR301 with the payer is how a treaty rate is claimed.
Which society collects Nigerian music royalties?
Mondaq's January 2026 guide names MCSN as the recognised society for music creators, and IPKat reports COSON's licence has not been renewed since 2019. Check the current position with the Nigerian Copyright Commission.
Sources
- legislation.gov.uk: Copyright, Designs and Patents Act 1988, section 90 · accessed Oct 2026
- US Copyright Office: Circular 12, Recordation of transfers and other documents (rev. Sep 2016) · accessed Oct 2026
- CRA: T4061 NR4, Non-resident tax withholding, remitting and reporting · accessed Oct 2026
- Mondaq (Rosewood Legal): Music licensing and royalty collection in Nigeria (7 Jan 2026) · accessed Oct 2026
- IPKat (guest post, Seun Lari-Williams): Nigeria's copyright licensing (30 Jul 2026) · accessed Oct 2026
- GOV.UK: UK-Nigeria double taxation convention (1987, PDF) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.