Music Copyright Society of Kenya (MCSK) has been blocked from collecting royalties from users of music and audio-visual rights holders.
Issuing the order, Milimani Magistrate Rawlings Musiega further froze MCSK’s revenue collection account, pending the hearing of a case filed by Performing and Audio-Visual Rights Society of Kenya (PAVRISK).
PAVRISK told the court that MCSK has been issuing users of copyrighted works with joint KAMP-PRISK-MCSK invoices and licenses and has been collecting the full tariff amount into its Revenue collection account, held at NCBA Bank, and to Safaricom Paybill Number 5129000.
According to PRISK, MCSK’s actions of collecting royalties for all rights through misrepresentation that it’s doing so under the umbrella of the Joint KAMP-PRISK-MCSK agreement was without its knowledge or authority.
The court heard that the collection was also in total disregard of the Termination of Joint operations as communicated in a letter on June 10, 2024.
“That pending hearing and determination of this suit, this court is pleased to freeze and restrict MCSK Revenue Collection Account number 5527990048 held at NCBA Bank, Wetlands Branch and Safaricom paybill number 5129000,” said the magistrate.
The court also directed Safaricom and NCBA to submit before court-certified statements showing all transactions made in the MCSK Revenue collection account and the paybill.
The court directed the case to be mentioned on January 28, 2025, for further directions.
The court heard that the use of PRISK logo and contact details to mislead and obtain money from users, not only constitutes fraudulent misrepresentation but is also an infringement of its rights.
PRISK reckoned that collection and distribution of royalties to right holders in Kenya is administered through Collective Management Organisations, which is registered under the Copyright Act.
Over the years, three CMOs have been licensed to administer a specific class of rights.
MCSK had been licensed to administer the rights of the author, composer, publisher and arranger until May 9, 2024, when the license expired.
Kenya Association of Music Producers (KAMP) was licensed to administer the rights of Producers of Sound Recording until the license expired.
PRISK, which later changed its corporate name to Performing and Audio-Visual Rights Society of Kenya (PAVRISK) was licensed to administer the rights of performers of sound recording and audio-visual works.
For ease of administration of copyright, the Kenya Copyright Board directed the three CMOS to enter into a joint licensing arrangement in January 2019, following complaints by users and the general public that they were being overburdened by being required to obtain multiple licenses from the individual CMOs for use of copyrighted works.
From the arrangement, the revenue collected was then to be shared in the ratio of 21.12 percent, 24.5 percent and 53.38 percent for KAMP, PAVRISK and MCSK, respectively.
But upon expiry of the provisional licenses to the three CMOs, the board issued PAVRISK with a unified license for all rights to represent the author, composer, publisher, arranger, producer and performers of sound recording and performers of audio-visual works category of related rights for a period of one year, beginning June 7, 2024.
Following the decision, the PAVRISK said it terminated the Joint Operations through a letter on June 10, 2024, notifying KAMP and MCSK of its exit from the joint arrangement since it was now authorised to collect royalties on behalf of all right holders.
Aggrieved with the decision of the Board of failing to issue it with a license, MCSK moved to court and obtained an order allowing it to collect for its members.
However, PRISK said the orders did not permit or authorise MCSK to collect royalties for other rights including those represented by PRISK.
KAMP also moved to the Copyright Tribunal challenging the Board’s decision to license it and the tribunal directed the Board to reconsider the applications.
PAVRISK said the Board reconsidered the applications and yet again licensed it as a single CMO in a letter on August 2, 2024.
