24 June 2008: The National Credit Act (NCA) was introduced to help prevent reckless lending and to address South Africa’s massive credit debt. Unfortunately, certain aspects of the NCA conflict with the way the Southern African Music Rights Organisation (SAMRO) applies its standards of practice and this is affecting the organisation`s Royalty Advance Payments process and the livelihood of some of its composers and authors.

In an effort to address this challenge, SAMRO has entered into legal action against the National Credit Regulator (NCR) and issued a declarator (an objection) as the stringent requirements of the NCA are hampering the growth of South African composers and authors’ works and stifling the music industry amongst others.

The role of SAMRO within the South African market has not always been fully understood. SAMRO was established in 1961 with the objective to protect the intellectual property of composers and authors and ensures that the talent of the music industry is adequately credited both locally and internationally for music usage.

The organisation plays a vital role in the collection of license fees, administration of works, distribution of royalties and in protecting the copyright of musical works of all its composers and authors, through the collection of license fees from television broadcasters, radio stations, in-store radio stations, pubs, clubs, retailers, restaurants and all other businesses who broadcast music.

SAMRO collects license fees on behalf of its composers and authors and distributes all collections to earning composers and authors. These license fees are collected daily and accumulated in an investment account on behalf of SAMRO members, which earns interest throughout the year. This interest is then paid out to all earning members in a Non Royalty Revenue distribution at the end of each year, and distribution only occurs once all complete data has been received from all the relevant music users. This is done to ensure that all royalties from music users are captured to maximise royalty benefits for all SAMRO’s composers and authors.

SAMRO abides by global best practices and makes royalty distributions across various categories of music usage, namely TV, film, foreign performance and radio to earning composers and authors throughout the year.

The organisation protects an extensive repertoire written by thousands of songwriters and composers worldwide and is linked to over 200 global collecting societies for public performance or mechanical reproduction rights. SAMRO has a membership base in excess of 7 000 composers and authors of all nationalities in Southern Africa.

SAMRO has an important role to play in the collection of licenses, administration of works and distribution of royalties to its composers and authors. The organisation is guided by global best practice standards to ensure protection of copyright of all musical works of its composers and authors. The contestation of certain aspects of the National Credit Act, therefore, plays a vital role to address sustainability and consistency of the music industry worldwide.

About SAMRO:

The Southern African Music Rights Organisation (SAMRO) is the primary representative of music performing rights in Southern Africa, whose key function is to administer the public performance, broadcast, diffusion and mechanical or reproduction rights in musical works on behalf of composers, authors/songwriters and musicians/music publishers.

SAMRO now also administers "Needletime" Rights: musicians now have the right to receive payment for the exploitation of their recorded performances, thanks to “needle time”.

Under the concept (“Needletime”), aspiring artists, background singers,instrumentalists, and well-known hitmakers alike, would be compensated for use of their work when it is broadcast or communicated to the public, when they assign their Needletime Rights to SAMRO.

Issued by SAMRO on 24 June 2008.

For more information contact:

www.samro.org.za

Yavi Madurai
Office  : +27 (0) 11 489 5025
Mobile : +27 (0) 83 627 8370
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Nicole Pellicena
Office  : +27 (0) 11 489 5025
Mobile : +27 (0) 82 927 8715
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