The enactment of the Copyright Bill 2017 which proposes radical changes to the Copyright Act will see the country’s musicians, producers, actors, performers, filmmakers, and creatives enjoy better revenues and accountability in as far as the collection of their royalties is concerned.
The amendment bill proposes that the Kenya Revenue Authority be tasked with the responsibility of collecting and remitting royalties for artists as opposed to individual Collective Management Organizations (CMOs).
“This can be viewed as an effort to bolster accountability and verifiability in the collection and remittance of royalties. Considering the national scope of collection of such royalties, it is arguable that the KRA has greater collection capability as already applied with taxes and County revenue collection compared to individual CMOs,” explained MMC Africa Law Partner Bernard Musyoka.
He added that this particular clause if adopted and enacted, might also reduce the exceptional administrative costs that CMOs bear, which artists have consistently complained of.
“However, the increased number of intermediaries raises the risks of transactional charges eating into collected royalties just as CMOs’ administrative costs have in the past,” Mr. Musyoka added.
The Copyright Bill also proposes that The Kenya Copyright Board (KECOBO) be granted the mandate to inspect and supervise various aspects of CMOs’ operations that will extend to the books of accounts and organizational records.
It goes ahead to state that the person authorized in writing by KECOBO to investigate the CMO will submit a report on any arising issues that in their opinion require a forensic auditor remedial action.