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Insights

The President’s Directive on Royalties Collection and Distribution

In a bid to streamline collection and distribution of royalties to artistes, President Uhuru Kenyatta while addressing the nation on 14th January 2020, issued a directive to stop Content Service providers (CSPs) from collecting revenue on behalf of artistes.

CSPs in Kenya will now be required to channel all royalty payments through a single, centrally managed account by the Kenya Copyright Board (KECOBO). The move is expected to weed out middlemen in the collection structure so that the artistes reap maximum returns from their works. Further, the single-centrally managed account will enable oversight by KECOBO and ensure that the collection and distribution accounts are easily auditable. To facilitate payment of royalties, copyright holders will be required to register on the National Rights Registry.

To further ensure that artistes benefited from their works, the President directed the Ministry of Interior, Ministry of Tourism and Wildlife, and Ministry of Information, Communication and Technology to ensure that public service vehicles, the hospitality industry, and broadcasters respectively, meet all their obligations in paying the required tariffs. The new tariffs are expected to be gazetted by mid next month.

The President also directed the Ministry of Information, Communication and Technology to remove conditions requiring digital platforms to only work through licensed CSPs. Musicians will thus be at liberty to work directly with digital platforms such as Skiza and Viusasa.

The proposed changes are based on a memorandum of understanding (MoU) signed on 20th December, 2019 by KECOBO and the Collective Management Organisations (CMOs).

The President’s address to the nation may be found here.

Please contact us at Info@cfllegal.com should you require further information.

 

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Brenda VilitaLorna Mbatia
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