Management of Performers’ and
Phonogram Producers’ Rights – the
Case Study of Kenya
Presentation by June Gachui
Kenya Association of Music Producers,
Harare, Zimbabwe 8th November 2012
Related Rights and Collective Management
• Kenya Association of Music Producers (KAMP) and
Performers Rights Society of Kenya (PRISK)
• 3 in the Music Field – KAMP, PRiSK, MCSK
• KAMP – Owners of Sound Recordings / Phonogram producers
• PRiSK – Performers/Musicians
• MCSK – Authors/Composers
• All are licensed and regulated by the Kenya Copyright Board
(KECOBO) under Section 46 (2) of the Copyright Act of
Kenya 2001.
• Mandates found in The Copyright Act of Kenya 2001,
Sections 28, 30 and 30A respectively.
• All CMOs receive licenses on an annual basis, subject to
regular audits, reviews, compliance and performance.
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Incorporated in 2003 as a Company Limited by Guarantee.
Registered as a Collecting Society by KECOBO in 2008.
Currently has 118 members, with more pending applications.
Board Membership stands at 9, 3 yr terms
3 Committees;
• Finance and Administration Committee,
• Public Relations Committee
• Membership Vetting Committee
• Various ad-hoc committees as and when.
• Staff: 4 full time and 3 part time
• Monthly budget- KShs 700,000 (USD 8500)
Kenya Association of
Music Producers
• STATS
• Incorporated and Registered as a Collecting Society by
KECOBO in late 2009.
• Currently has 80 members.
• Board Membership stands at 6
• Staff: 2 full time, 2 consultant
• Shared Secretariat with KAMP
• Monthly Operating Budget Kshs 500,000 ( USD 6000)
Performers Rights
Society of Kenya
• Related Rights / Neighbouring Rights are not well
understood.
• The ‘newbies’ in the industry, earlier, sometimes
negative experience with older CMOs;
• Hostility from major users, e.g Broadcasters, Hotels,
Pubs- Prolonged negotiations with very little result.
• Lack of awareness and visibility
• Lack of resources; human and financial
• Lack of sufficient expertise and competency in the
combined field of copyright and collections!
• Legal and other compliance- revisions, amendments.
Challenges
• Cost savings for both CMOs. Ex/ Rent and Utilities
before Kshs 200,000/- per month (USD 2400) Now
Kshs 57,000/- per month (USD 700)
• Two heads are better than 1, more room for creativity
• Increased representation, Larger pool of artists and
producers to use as Ambassadors
• Increased understanding of both Performers and
Producers rights
• Sense of unity and joint accountability.
• Recent Legislative changes- equitable right to
remuneration.
• Opens doors for other Partnerships Ex/ WIPOCOS pilot,
NORCODE Funding and Coaching.
Advantages
• 2 Partnerships in KAMP’s lifetime, both CMOs
• Drastically different experiences:
• Time factor
• Systems, Policies, Procedures
• T.A.G
• Various crucial lessons have been learned:
• Sometimes partnering too early is not advisable
• Clearly demarcate the area of convergence
• Assign roles and duties in a clear manner
• Have difficult conversations early, document EVERYTHING
• JOINT and EQUAL PARTICIPATION
• COMMUNICATION!
• Mediators between Boards
• Shared vision.
Understanding Partnership
• Ex/ MCSK – KAMP Partnership from 2008 to 2010
• Commission based joint collection – 20%
• Unclear method internally at MCSK of vetting amounts
collected or supporting documentation for what was
due to KAMP
• Insufficient capability at KAMP to monitor.
• No meeting of the minds as to cost sharing.
• Breakdown in communication at Board level
• Broken trust
• Remittances stopped altogether
Learning through
experience…
• Result was arrears have now been outstanding for over
2 years.
• Mediation by KECOBO
• Negotiations after the fact to arrive at an agreed
reduced compromised amount of USD 136,000.
• Further intervention by Management, fellow CMOs and
NORCODE saw an commitment from MCSK CEO in
September 2012 to repay the arrears in monthly
payment of USD 4700 from November 2012 until full
and final settlement.
Experience is the best
teacher…
Maurice Mwande Okoth MCSK, Saemund Fiskvik NORCODE, June Gachui KAMP
Momentous hand shake, 3rd September 2012.
Sealing of the deal that will see MCSK pay KAMP its pending arrears
© Courtesy of Angela Ndambuki - PRiSK
Resolution…Possible
beginning!
Growing money….Ultimately, this is our goal!!!
“GET RICH OR DIE TRYING” 50 Cent US Rapper
REVENUE, COLLECTIONS
MONEY TALKS!!!
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WHAT
Joint Collection Partnership;
Shared Secretariat;
Professionalism
Recruitment of Commission Agents;
Operational Cost Reduction;
Awareness and Sensitization
Motto/Slogan
Government and Stakeholder support
WIPOCOS
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WHY
User-Buy In,
Quicker compliance
More money
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2011 total joint collections approx USD
43,000
2012 interim joint collections approx
USD 120,000
Betterment of our industry/unified goal
More investment
Satisfied Members
Efficiency, Transparency, Accountability
Better quality recordings
Principles
“PAY FOR PLAY”
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COMMUNICATION TO THE PUBLIC – Outsourced
July 2011, Joint Decision by both KAMP – PRiSK Boards & Management to carry out collection
exercise for revenue from Communication to the Public Stream of Revenue on a commission basis.
Documents developed jointly:-Business cards, ID cards, Tariffs, Public Statements, FAQs, Invoices,
Receipts, Licenses all bear both CMO logos and joint messaging
Pilot Run in Nairobi County: KAMP-PRiSK appoint first Commission Agent to start work in September
2011.
Six month probation period, 15% Commission, Phase 2 Roll out to other areas of Kenya.
Feb-March 2012, Roll out of Phase 2- Recruitment of more agents for rest of the country.
Findings from Re-evaluation of lessons learned, successes, failures and recommendations:
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Increase Commission from 15 to 25%
More frequent feedback meetings with team on the ground
Recruitment of a Head of Licensing to maintain internal licensing section
Constant training.
Make it easy for user to pay, embrace technology
Proactivity- User Forums for information, negotiation and maintenance of relationship.
More involvement of KECOBO required, to support ( enforcement), oversee, intervene.
Collection Strategy
• BROADCASTING –In House
• Negotiations with Media houses through associations
to get their buy in – not successful as yet due to lack of
agreement on tariff, delay tactics.
• Appeal to members to join CMOs in this strategy – Use
all public forums to speak about the importance of
supporting industry and paying CMOs.
• Take advantage of everything.
• Media appearances on talk shows- Radio & TV
• Barter Exchange – initial 50:50 Start Relationship
Collection Strategy
contd…
CTP
JAN
FEB
MAR
APRIL
(Kshs)
(Kshs)
(Kshs) (Kshs)
MAY
JUNE JULY
AUG
SEPT
OCT
TOTAL
(Kshs)
(Kshs) (Kshs)
(Kshs)
(Kshs)
(Kshs)
(Kshs)
389,140 193,346 54,608 3,715,472 115,989 22,000 1,254,034 3,749,980 455,975.20 441,816 10,392,360.20
Broadcasting -
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150,000 150,000
4,000,000.00
Joint Net collections
3,500,000.00
3,000,000.00
2,500,000.00
2,000,000.00
1,500,000.00
Joint Net collections
1,000,000.00
500,000.00
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Jan – USD 4600
Feb – USD 2330
Mar – USD 700
April - USD 44,700
May - USD 1,400
June – USD 265
July – USD 15,108
Aug – USD 45,180
Sept – USD 5500
Oct - USD 5350
• Current model inspired by related rights CMO examples
– PPL, GRAMMO
• Individuality to be maintained: KAMP and PRiSK still
need to handle respective member affairs.
• Collection from SAME USERS, for what USERS consider
SAME PRODUCT. Ex/
Marriage is WORK!
• Combined skills, resources to establish a formidable
licensing team.
• Increased collections
• Corporate Governance and Transparency
• Distribution, Distribution, Distribution!!!
• Joint Collection – One Stop Shop, COSCAP, COSON etc
• The Users want to pay ONE License Fee, to ONE Body
• Is this possible? Pros and Cons?
• Ultimately, we need to meet each-other half way
Way forward:
Perhaps one day…
Thank You….
QUESTIONS?????