KAHC, PERAK and entertainment industry strike new deal on copyright tariff.

The Kenya Association of Hotel keepers and Caterers (KAHC), their regional affiliate bodies, the Pubs Entertainment and Restaurants Association of Kenya (PERAK), and the collective Management Organizations(CMO’S)  announced a new agreement regarding tariffs and payment methods for the background use of musical work, sound recordings and audio visual works.

This follows the signing of a Memorandum of Understanding. The MOU Captures the re-negotiated tariff principle based on a percentage of the single business permit (SBP) and where applicable the liquor license (LL) based on the county in which the business operates in.

“The MOU is in response to the concerns raised after a gazette notice published in April 2017. Stakeholders and the relevant CMO’s were hosted by Kenya Copyright Board (KECOBO), to renegotiate the music royalty tariffs payable specifically for the use of background  music by the members of these associations and develop a more professional efficient method of collection,” said  KAHC CEO, Mike Macharia.

The deal was reached between Pubs Entertainment and Restaurants Association of Kenya (PERAK), the Kenya Association of Hotel Keepers and Caterers (KAHC) their regional affiliate bodies and the Collective Management Organizations(CMO’S) regarding tariffs and payment methods for the background use of musical work, sound recordings and audio visual works.

Every establishment that engages in the background use of musical works, sound recordings, and audio visual works in their premises will be expected to pay the amount captured in the invoice raised,” PERAK Chairman, Patrick Muya stated.

“Compliance is mandatory and each user is obligated by law to make a payment towards the use for the benefit of the owners of the rights in the content. These negotiations and subsequent MOU seeks to ensure a significant increase in compliance and collections for the members of the CMO’s,” added Performers Rights Society of Kenya, chairlady Iddi Achieng.

Invoices will be issued by the CMO’s to the respective business and they will have a period of fourteen (14) days to settle the invoice. Failure to pay within this window of compliance will result in strict penalties and the initiation of an enforcement procedure as per the attached document.

“As part of our continued commitment to an improved efficient and transparent collection and distribution process, the three CMO’s have planned to transition from the current manual process and automate the licensing process to enable music users pay for the license to use music,” said Chairman MPAKE Bernard Kioko.

“Members should note that this pilot process will take immediate effect and that an implementation committee representing both the BMO’S and CMO’s has been formed to further clarify any issues that may arise” added Justus Ngemu Chairman KAMP.

As a result of this MOU, the BMO’s and CMO’s will carry out a countrywide awareness campaign on the new tariff changes.