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Telecommunications industry

Mobile Phone Companies Exempt from Paying Musicians Directly for Callback Tunes

Strategic Insights

— 1 min read

The Music Associations Alliance of Kenya (MAAK) chairman, Justus Ngemu and former teacher-cum-musician Saul Esikuri, had filed a case against the Kenya Copyright Board and the Cabinet Secretary for Gender, Culture and Arts to compel mobile service providers Safaricom and Airtel to pay musicians directly for their callback tunes. However, the High Court in Nairobi has declined the request, stating that the two telcos were already paying the artistes despite there being no regulations or database. Justice John Chigiti noted that if Safaricom and Airtel are to pay the musicians directly, there must be a way to identify them.

Key Takeaways:

  • The High Court declined the request by Justus Ngemu and Saul Esikuri to compel Safaricom and Airtel to pay musicians directly for their callback tunes.
  • The court stated that Safaricom and Airtel were already paying the artistes despite there being no regulations or database.
  • The Kenya Copyright Board and the Cabinet Secretary for Gender, Culture and Arts were ordered to establish a database of all artists and their work.
  • Section 30 C of the Copyright Act No. 12 of 2001 addresses the payment of ring-back tune revenue, allocating 52% to the artist or copyright holder and 39.5% to the telcos.
  • The Copyright (Amendment) Act No.14 of 2022, passed by Parliament in February 2022 and signed into law by the President in April 2022, introduced the 52-39.5% revenue allocation.
  • Justice Chigiti revoked previous orders requiring Safaricom and Airtel to release all frozen funds and continue paying the artists.

Statistics:

  • 52% of the revenue from ring-back tunes goes to the artist or copyright holder per Section 30 C of the Copyright Act No. 12 of 2001.
  • 39.5% of the revenue from ring-back tunes goes to the telcos per Section 30 C of the Copyright Act No. 12 of 2001.
  • Safaricom and Airtel charge Sh1.50 daily for local and international tunes.
  • The Copyright (Amendment) Act No.14 of 2022 was passed by Parliament in February 2022 and signed into law by the President in April 2022.

Sources:

  • "High Court Squashes Case Against Safaricom, Airtel" by Daily Nation, [Not specified].
  • "Section 30 C of the Copyright Act No. 12 of 2001".
  • "The Copyright (Amendment) Act No.14 of 2022".

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