Music streaming firm Mdundo has revealed a Sh31.5 million copyright breach claim that was filed against it during the financial year 2022/23.
The company has not provided details of the claimant or the song but said the demand is denominated in Kenya shillings--an indication that it originated from Kenya.
Mdundo has however expressed optimism that that it will win the case. The firm recently said that over 140,000 artists have created accounts on the streaming platform, with 86,000 of them being Kenyan, translating to 61.4 per cent local composition.
“Mdundo has been demanded payment of Sh31,553,500, equivalent to DKK 1,539,175 as of June 30, 2023, for alleged copyright infringement. However, based on a legal assessment, it is considered highly likely that the court will acquit Mdundo of the allegation,” said the firm.
This comes as the company extended its loss-making run in the year to June 2023 after it widened its net loss by 5.4 per cent during the period.
This is despite growing its revenues in what it attributed to weak currencies in its key markets particularly the Kenyan shilling and Nigerian naira.
The firm, which is listed on Nasdaq Nordic in Denmark, has posted a net loss of Danish krone (DKK) 10.21 million (Sh213.4 million) for the financial year to June 2023, widening its loss of DKK9.68 million (Sh202.3 million) in the previous year.
This is despite growing its revenues by nearly three-quarters to DKK12.63 million (Sh264.15 million) from DKK7.25 million (Sh151.69 million), an increase of 74 per cent.
The High Court last month awarded former hip-hop artiste-turned-businessman Simon Kimani, alias Bamboo, damages of Sh4.5 million after it found that leading telco Safaricom had used three of his songs - Mama Africa, Yes Indeed and Move On – as Skiza callback tunes without authorisation.
Bamboo and Safaricom had battled in court for nearly nine years. He moved to court in December 2015 against Safaricom and two premium rate service providers accusing them of using his intellectual property to generate revenue without his consent.
