- In a letter to the Kenya Copyright Board (KECOBO) and consequent license issued, the Performing and Audio Visual Rights Society of Kenya (PAVRISK) said it has formally established the single CMO.
- The move aims to streamline the royalty management process and address longstanding inefficiencies within the current multi-CMO framework.
Image: ENOS TECHE
Authors, composers/arrangers, publishers, producers of sound recordings, performers and actors in Kenya will now have their royalties collected and distributed by a single Collective Management Organization (CMO).
In a letter to the Kenya Copyright Board (KECOBO) and consequent license issued, the Performing and Audio Visual Rights Society of Kenya (PAVRISK) has formally established the single CMO.
The move aims to streamline the royalty management process and address longstanding inefficiencies within the current multi-CMO framework.
“As the Performing and Audio Visual Rights Society of Kenya (PAVRISK), we firmly believe that having a single Collective Management Organization (CMO) is the best path forward," read the letter.
"This position is not only grounded in practical experience but also supported by legal provisions, particularly Section 46 C and Section 46(2) of the Copyright Act.”
Historically, the Music Copyright Society of Kenya (MCSK) was the sole CMO.
The sector has, however, fragmented, leading to the formation of the Kenya Association of Music Producers (KAMP) in 2003 and the Performers Rights Society of Kenya (PRISK) in 2009.
PAVRISK further adds that from 2019 to 2023, the three CMOs collectively managed to gather substantial royalties, with total collections reaching Sh249,911,066.00 in 2023.
However, the funds distributed to rights holders were significantly reduced due to high administrative costs and internal conflicts.
“From 2019 to 2023, the total collections by the three CMOs were distributed in the following share ratio: 54.38 per cent to MCSK, 24.5 per cent to PRISK, and 21.12 per cent to KAMP. Each CMO managed its own primary employee benefits, HQ rents, board honorariums, and other allowances, and carried out its own distributions. However, internal leadership conflicts arose, particularly concerning the roles of the tripartite chairperson and CEO,” the letter added/
Despite the tripartite board's decisions being superior to individual CMO board decisions, PAVRISK claims some CMOs failed to implement joint resolutions.
Despite these efforts, PAVRISK claims internal conflicts and operational discrepancies persisted, leading to frequent disputes and legal battles.
The tripartite arrangement introduced in 2019 failed to unify the CMOs effectively, with governance issues and leadership conflicts further hindering progress.
This fragmentation, PAVRISK argues, led to operational inefficiencies and user dissatisfaction due to the need for multiple licenses for music usage.
PAVRISK argues that the dual licensing system has caused significant issues, including user dissatisfaction and enforcement challenges, which culminated in industry-wide outcry.
PAVRISK says a unified CMO is beneficial in many ways including in operational efficiency, which would reduce administrative overheads and streamline operations, significantly increasing the funds available for distribution to creators.
Additionally, the society says a single CMO would reduce legal disputes by eliminating overlapping membership representation and the resultant legal battles, ensuring a more stable and predictable royalty distribution process.
“Consolidation into a single CMO would drastically reduce administrative overheads. In 2023, the collective revenue was KES 249 million. Under a unified CMO, 70 percent of this amount (approximately KES 174 million) would have been available for distribution, compared to the minimal amounts distributed by the individual CMOs (KAMP KES 6 million, PRISK KES 10 million, MCSK unknown),” read the letter.
To reflect its new role, expand its membership base, and implementing advanced ICT solutions for efficient royalty management, PAVRISK has amended its Memorandum and Articles of Association.
The society has also applied for a single CMO license, adhering to all legal requirements and demonstrating comprehensive representation across the rights it intends to manage.
“PAVRISK implemented a state-of-the-art digital collection system accessible via USSD *553# and the web link. This system has achieved a significant milestone by issuing invoices totaling Sh22 million between June 7, 2024, and June 18, 2024, surpassing the monthly collections of the previous organization, KPM, for June in prior years,” read the letter.