From Beats to Deals: The Role of Intellectual Property Law and Innovation Policy in Advancing the Music Industry

Growing up, I listened to 2face Idibia's hit song “African Queen”, performed by 2face with disputes and later resolution on the composition rights and produced under Kennis Music^[1]. I listened to that song being played on a tape cassette bought at a store, played on a Radio with imaginations of what the concept of love holds.

Fast forward to the present, is a young adult listening to Burna Boy's hit song “Last Last”. A song made possible with licensed sampled beats of Tony Braxton’s song “He wasn't man enough”,  co-written with producers Off & Out (brothers Mikael and Samuel Haataja), Chopstix, Mds, and Ruuben and performed by Burna Boy.^[2] It was being played on a digital platform I subscribe to, while this time reflecting on the concept of love through experiences. I was taken aback by how the production, distribution and sale of music have evolved.

The above experience reflects the evolution of music as an art performed in its earliest form by humans for purposes such as dance, personal or communal entertainment, communication, and ritual ^[3]  to a US$29.6 billion industry^[4].

Music is an art^[5], combining vocal or instrumental sounds for beauty of form or emotional expression, usually according to cultural standards of rhythm, melody, and harmony^[6] Beyond an art form, it is a universal language that transcends borders, cultures, and generations. Music enriches our lives and fuels creative expression^[7].

Consequently, behind the evolution of this prehistoric form of expression to an art and a celebrated industry lies the “Chief Corner Stone”^[8] – Intellectual Property.  According to WIPO, Intellectual Property (IP) refers to creations of the mind, such as inventions, literary and artistic works, designs, symbols, names, and images used in commerce. Intellectual property exists in forms such as copyright, trademarks, patents, and industrial design^[9]. In music, intellectual property is primarily represented by copyright. Intellectual property has evolved from its foundational philosophical underpinnings, such as John Locke’s "labour theory" and Immanuel Kant's notion of inherent rights to expression. This evolution includes key legal developments like the Statute of Anne and significant court cases such as Millar v. Taylor and Donaldson v. Becket^[10]. Additionally, agreements like the Berne Convention of 1886 and various copyright laws enacted by different countries have shaped the landscape of music copyright,^[11] leading to international treaties such as the Trade Related Aspects of Intellectual Property (TRIPS Agreement), the WIPO Copyright Treaty (WCT), and the WIPO Performances and Phonograms Treaty. Intellectual property has played a significant role in the advancement of music.^[12]

On the other hand, innovation represents a significant advancement in the last 300 years of music, contributing heavily to how music is produced, distributed, and enjoyed- from the early inventions of Thomas Edison's phonograph to today's streaming platforms and multi-sided platforms, leading to the eventual rise of Artificial Intelligence^[13]. Therefore, policies such as the National Copyright Commission’s  Medium Term Corporate Plan and Strategy (MTCPS) aimed at shaping the conditions under which innovation occurs are particularly important in the music industry, thereby influencing economic growth and societal welfare^[14]. As outlined by Fagerberg's Innovation policy, this extends beyond traditional science and technology policy to encompass diverse domains such as education, finance, and regulation, all of which contribute to innovation systems.^[15]

At first instance, Intellectual Property and Innovation Policy establishes Legal rights and enforcement mechanisms for music. In Nigeria, intellectual property law, such as the Copyright Act 2022, affirms that rights subsisting in original musical works (Section 2(1)), granting creators exclusive rights to reproduce, perform, broadcast, and adapt their works (Section 9).^[16] These rights give artists legal control over the use of their music, enabling them to benefit commercially and protect the integrity of their creations. The Act also sets clear standards for the duration of rights (life of the author plus 70 years, Section 11) and provides for collective management through licensed organisations (Sections 24–27), allowing for efficient royalty collection and distribution.^[17] In terms of enforcement, the Act establishes civil remedies such as injunctions and damages (Section 60), as well as criminal sanctions for willful infringement (Section 66).^[18]

Intellectual Property has played a crucial role in establishing structures and institutions that ensure the proper management and advancement of music. In Nigeria, the Nigerian Copyright Commission (NCC) serves as a regulatory agency that investigates violations, prosecutes offenders, and conducts anti-piracy operations through appointed inspectors.

 

Additionally, there are Performance Rights Organisations (PROS) and Collective Management Organisations (CMOS) such as ASCAP, BMI, and SESAC in the United States, as well as the Copyright Society of Nigeria (COSON)^[19]. These organisations operate based on a fundamental framework for copyright protection and enforcement, often referred to as the "four C's": cultivating awareness, changing perceptions, combating violators, and collecting and distributing royalties. This framework contributes to the overall development of the music industry.^[20]

 

For example, in 2016, COSON distributed approximately $655,000 to rights holders. Initiatives like ‘No Music Day,’ where all radio stations are required to stop playing music for a few hours to raise awareness about the intellectual property rights of artists, further enhance compliance and promote the advancement of these rights.^[21]

Beyond establishing legal rights, economic rights for music have evolved it from being a mere form of art to becoming a product and service, despite being intangible. As Litman eloquently states, copyright transforms music into “a thing rather than an action.”^[22] The financial aspects of music are realised through royalties, licenses, and the sale of copyrights, leading to the creation of a vibrant industry.

Intellectual property has facilitated the development of the music industry, which consists of a complex network of various organisations and outlets working together to promote and commercialise music^[23]. This network includes artists as the primary producers, record labels such as Universal Music Group, Sony Music Entertainment, and Warner Music Group, as well as investment companies like Kupanda Holdings^[24], which invests in talent in Africa and ensures guaranteed revenue generation through the sale of rights.

Copyright establishes markets for the use of copyrighted material, including a primary market consisting of sales of sheet music and sound recordings, and a secondary market where recorded works are used in broadcasts and public performances in venues such as discos, shops, and pubs. In the primary market, royalties are paid to composers and performers based on the price of the item for the use of their work by publishers or record companies, through contractual agreements. The secondary market is supported by streaming services and multi-sided platforms that facilitate the sale of licensing rights.^[25]

This framework ultimately creates a global industry. The 2025 IFPI Global Music Report highlights the central role of intellectual property rights (IPRS) in transforming music into a significant economic driver. IPRS empower creators and rights holders to maintain control over their works, converting intangible assets like sound recordings into legally protected economic goods. This legal foundation enables licensing, monetisation, and global distribution of music, fostering a thriving, rights-based marketplace. In 2024, global recorded music revenues exceeded US$29.6 billion, with streaming—largely dependent on licensed access to copyrighted content—accounting for 69% of this total.^[26] Additionally, performance rights and synchronisation added a combined US$3.55 billion, further illustrating how IPRS generate recurring income across various contexts. By underpinning the commercial value of creative works, intellectual property frameworks not only incentivise artistic creation but also sustain a diverse ecosystem of music businesses, promoting innovation, job creation, and cultural exchange across borders.

"Without copyright protection, society would be deprived of artistic and literary creativity." - Keane^[27]

Moreover, intellectual property has fueled creativity, as copyright law grants authors and copyright holders a specific set of exclusive rights in their works, provided they meet certain criteria relevant to the type of work.^[28] Key criteria include the effort invested in creating the work, its originality, and its expression in a recognisable medium through which it can be perceived, reproduced, or otherwise communicated, either directly or indirectly. Consequently, intellectual property rights criteria of novelty drive creativity and innovation in music, leading to an increase in the quality of musical arts. Further, IPRS incentivises authors and publishers to create and distribute musical works by enabling them to control how their creations are used and to recover the costs involved in their production, leading to an increase in quantity produced and expansion.

Thus, Intellectual Property has played an immense role in the advancement of music, however, recent developments such as the advent of generative artificial intelligence (AI) are profoundly reshaping the music industry, introducing both innovative possibilities and significant challenges^[29]. Generative AI models, capable of producing music that closely mimics human compositions, often utilise vast datasets scraped from existing musical works without proper licensing. This practice raises substantial legal and ethical concerns, as highlighted by the viral AI-generated track "Heart on My Sleeve," which emulated the styles of Drake and The Weeknd, leading to legal actions by Universal Music Group^[30]. A study by the International Confederation of Societies of Authors and Composers (CISAC) projects that music creators could lose up to 24% of their income by 2028 due to the proliferation of AI-generated content, translating to a potential €22 billion loss.^[31]

Consequently, these developments have prompted Governments to “very much like to find something everyone can work with. ”. Attempting a balance for innovation as regards Artificial Intelligence and protecting creative work from exploitation. This blossoms the role and need for an Innovation Policy which addresses it. An instance is the UK attempts such as the AI regulations white paper, Copyright and AI: Consultation by the Intellectual Property office and  The Council of Music Makers (CMM), representing UK songwriters, composers, artists, musicians, producers, and music managers,  proposing five key principles for the regulation of AI in music.^[32]

In conclusion, the music industry's evolution from analogue tapes to digital streams reflects not only remarkable technological advancement but also the pivotal influence of intellectual property and innovation policy. Intellectual property rights have established the legal and economic foundations that empower creators, protect originality, and sustain a dynamic global marketplace. At the same time, innovation policy continues to shape an environment where creativity can thrive, even amid emerging challenges like generative AI. As the boundaries of music creation and consumption expand, it is more critical than ever to maintain a balanced framework that both safeguards artistic expression and embraces innovation. Today, more than at any point in history, policymakers are truly “feeling the beat” — called to action to harmonise progress with protection, ensuring the music industry remains a powerful force for cultural enrichment, economic growth, and creative freedom.

---

[1] Premium Times, ‘Flashback: How “African Queen” Redefined Annie, 2Baba’s Love Story’ Premium Times (2 April 2024) https://www.premiumtimesng.com/entertainment/naija-fashion/770694-flashback-how-african-queen-redefined-annie-2babas-love-story.html accessed 23 April 2025.

[2] Emily Zemler, ‘Burna Boy Samples Toni Braxton on New Single “Last Last”’ Rolling Stone (13 May 2022) https://www.rollingstone.com/music/music-news/burna-boy-samples-toni-braxton-last-last-1352432/ accessed 23 April 2025.

[3] J Montagu, ‘How Music and Instruments Began: A Brief Overview of the Origin and Entire Development of Music, from Its Earliest Stages’ (2017) 2 Frontiers in Sociology 264256 https://doi.org/10.3389/fsoc.2017.00008

[4] International Federation of the Phonographic Industry, Global Music Report 2025: State of the Industry (IFPI 2025) https://ifpi-website-cms.s3.eu-west-2.amazonaws.com/GMR_2025_State_of_the_Industry_Final_83665b84be.pdf accessed 22 April 2025.

[5]      Epperson G, ‘Music | Art Form, Styles, Rhythm, & History’ (Encyclopedia Britannica9 September 1998) <https://www.britannica.com/art/music> accessed 22 April 2025

[6] Epperson G, ‘Music | Art Form, Styles, Rhythm, & History’ (Encyclopedia Britannica9 September 1998) <https://www.britannica.com/art/music> accessed 22 April 2025

[7] ‘Intellectual Property and Music’ (music2025) <https://www.wipo.int/en/web/music> accessed 22 April 2025

[8]Holy Bible, New King James Version (Thomas Nelson 1982) Matthew 21:44.

[9] World Intellectual Property Organization, ‘About IP’ (WIPO) https://www.wipo.int/en/web/about-ip accessed 23 April 2025.

[10] Martin Kretschmer and Friedemann Kawohl, ‘The History and Philosophy of Copyright’ in Simon Frith and Lee Marshall (eds), Music and Copyright (2nd edn, Edinburgh University Press 2004)

[11] Ibid

[12] Ibid

[13] MusicWorx Inc, 'The Evolution of Music Listening' (MusicWorx Inc, 28 March 2023) https://musicworxinc.com/2023/03/28/the-evolution-of-music-listening/ accessed 23 April 2025.

[14] The Nigerian Music Industry: A Historical and Business Analysis

[15] Jan Fagerberg, Innovation Policy: Rationales, Lessons and Challenges (Pre-peer reviewed version, October 23, 2015) https://www.researchgate.net/publication/303510349_Innovation_policy_Rationales_lessons_and_challenges accessed 23 April 2025.

[16] Copyright Act 2022

[17] Ibid

[18] Ibid

[19] Juanita Abii, The Nigerian Music Industry: A Historical and Business Analysis (2023) https://www.researchgate.net/publication/373338863_THE_NIGERIAN_MUSIC_INDUSTRY_A_HISTORICAL_AND_BUSINESS_ANALYSIS accessed 23 April 2025.

[20] Emokpae, M. E. (2018). The Role of Collective Management Organizations in the Evolution of

the Nigerian Music Industry. American University, Students, 1–34

[21] Ibid

[22] Litman, J. (1991), 'Copyright as myth', paper presented to conference on

'Intellectual Property and the Construction of Authorship', Case Western

Reserve University, 19-21 April.

[23] The Nigerian Music Industry: A Historical and Business Analysis

[24] Akan, J. (2019, February 1). Private equity investors are making a big bet on Afrobeats' rapid

rise up the global charts. Retrieved from https://qz.com/africa/1539118/don-jazzys-

mavin-gets-multimillion-dollar-investment/.

[25] Chijioke Ifeoma Okorie, Multi-sided Music Platforms and the Law: Copyright, Law and Policy in Africa (Informa Law from Routledge 2020)

[26] International Federation of the Phonographic Industry, Global Music Report 2025: State of the Industry (IFPI 2025) https://ifpi-website-cms.s3.eu-west-2.amazonaws.com/GMR_2025_State_of_the_Industry_Final_83665b84be.pdf accessed 22 April 2025.

[27] Keane, T.M.: (1995) “Irish Competition Law and the Treaty of Rome: An Overview” Copyright World

[28] Chijioke Ifeoma Okorie, Multi-sided Music Platforms and the Law: Copyright, Law and Policy in Africa (Informa Law from Routledge 2020)

[29] Bloomberg Law, ‘AI’s Thorny Copyright Questions Create International Patchwork’ Bloomberg Law (3 April 2024) https://news.bloomberglaw.com/bloomberg-law-analysis/ais-thorny-copyright-questions-create-international-patchwork accessed 23 April 2025.

[30] Virginie Berger, ‘AI’s Impact on Music in 2025: Licensing, Creativity, and Industry Survival’ Forbes (30 December 2024) https://www.forbes.com/sites/virginieberger/2024/12/30/ais-impact-on-music-in-2025-licensing-creativity-and-industry-survival/ accessed 23 April 2025.

[31] Financial Times, ‘Global Creators to Lose Billions to Generative AI by 2028, Study Warns’ Financial Times (2 April 2024) https://www.ft.com/content/40b28a25-eddc-4ac5-82f3-dac0128a187f accessed 23 April 2025.

[32] PRS for Music, ‘PRS for Music Announces AI Principles’ (24 October 2023) https://www.prsformusic.com/m-magazine/news/prs-for-music-announces-ai-principles accessed 23 April 2025.