The Federated Hospitality Affiliation of Southern Africa (Fedhasa) has taken the South African Music Rights Organisation (Samro) to courtroom over the latter’s 2023 adjustments to the way in which public institutions together with eating places and resorts are charged music licensing charges.
In response to a press release by Fedhasa, eating places and resorts have been beforehand charged for music performed in public areas solely, however the adjustments made lengthen these charges to music performed from particular person TV units in personal lodge rooms.
“We’re not disputing the standard charges that we’ve paying for over 30 years. What we’re wanting clarification on from the courtroom is the brand new payment the place they’re charging per TV set per lodge room,” stated Rosemary Anderson, nationwide chair for South Africa at Fedhasa.
“Our members really feel they shouldn’t be paying these further charges and that’s the reason we’ve approached the courtroom.”
Anderson stated Fedhasa and Samro have a very good working relationship, which is why the 2 entities tried to resolve the dispute between themselves earlier than Fedhasa went to courtroom. The important thing level of competition within the debate between hospitality business stakeholders and Samro is the definition of what constitutes a public efficiency.
Fedhasa members imagine music performed within the widespread areas of a lodge together with swimming pools, foyers and lobbies matches the definition of a public efficiency and that they must pay charges to Samro for this, however that music performed from a TV in a personal room doesn’t. Samro disagrees.
‘Double dipping’
One other bone of competition pertains to what Fedhasa members have known as “double dipping” by Samro. Resorts and different public institutions pay subscription or licensing charges to broadcasters just like the SABC and DStv for the packages company take pleasure in within the privateness of their lodge rooms. The charges Samro collects from these broadcasters for the music performed by way of their numerous channels is assumed to be baked into the subscription charges charged to resorts. Samro charging resorts a further charges is extreme, sadi Fedhasa.
The third argument introduced ahead by Fedhasa members questions the legitimacy of the brand new charges primarily based on historical past. In response to Anderson, some Fedhasa members questioned why music performed by way of particular person TV units in personal lodge rooms instantly got here to suit the definition of a public efficiency after 30 years. “Numerous members really feel they shouldn’t be paying it as a result of they haven’t up to now, so why now?” stated Anderson.
Learn: Spotify says it paid South African artists R400-million final yr
She stated there’s a mixture of attitudes amongst Fedhasa members with regards to complying with Samro’s new payment construction. Some members have paid their charges for compliance sake however then got here to Fedhasa to specific their unhappiness. Others are so forthright of their stance that Samro is performing unlawfully that they’ve refused to pay any further charges ensuing from the brand new rule till the courts have clarified the matter.
Samro, in the meantime, has improved its payment assortment capability lately. In response to a February assertion by the organisation, Samro had a bumper 2024, rising complete licence payment income by 15% yr on yr to R684-million. Samro attributed the expansion to “diversified licensing” that has “unlocked new income streams”. Simply how a lot of that development is attributable to the charges beneath dispute and what influence the courtroom’s choice could have on Samro’s revenues stays unclear.
TechCentral reached out to Samro for remark however no response was acquired by time of publication. – © 2025 NewsCentral Media
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