Artistes will be happy to learn that all of Kenya’s Collective Management Organisations (CMOs) will not be licenced for 2020 to 2022 by Kenya Copyright Board until they comply with the newly amended Copyright Act.
The move affects Kenya Association of Music Producers (KAMP); Performers Rights Society of Kenya (PRISK) and the Music Copyright Society of Kenya (MCSK).
KECOBO’s board of directors deferred the licensing of CMOs so as to establish proper governance systems and eradicate wasteful management of royalties:
The CMO heads will have to provide a forensic audit for the period 2017 to 2019. CMOs must be properly structured to ensure compliance with the law, various regulations, good governance and integrity in the management of members’ resources.
Another stipulation by the board was, CMOS must obtain a fresh mandate from their members through proper and transparently conducted Annual General Meetings (AGM).
Also vetting of the senior management staff of the CMOs and the Board members of the three CMOs and obtain the relevant background details.
KECOBO shall undertake a formal review of the register of members of the three CMOs. To ensure that there are legit.
Even after the CMOs meet the above checks and reports received KECOBO will ensure that the organisation adhere to various conditions like;
a) There will be restrictions on the number of meetings to curb board expenses for the respective Boards of Directors.
b) CMOs should be restructured to ensure proper separation of board and management responsibilities in line with globally acceptable corporate governance practices.
c) There will be controls that ensures administration costs for the CMOs are capped to not more that 30 percent of their collections.
d) The licenses will be issued subject to acceptance of joint collection among the three music CMOs. e) The CMOs will be required to procure and use an ICT system for collection, monitoring and distribution of royalties to be approved by the regulator.