#ipkenya Weekly Dozen: 31/08

African Union Addis Abeba Ethiopia Second Extraordinary Congress Universal Postal Union 2018 Ababa

  • Ethiopia: Gearing up the postal sector to drive development [UPU]
  • Egypt: Mo Salah accuses Football Association of ignoring image rights [BBC]
  • Ghana: ARIPO launches Masters in Intellectual Property at KNUST [Going Places]
  • Nigeria: ‘White gold’ – GM cotton hope for troubled textile industry [GLP]
  • South Africa: Collecting society SAMRO under fire over multi-million US Dollar Dubai investment [Apparently]
  • Zimbabwe: ARIPO Magazine Vol.8 No.2 is out [Get Your Copy Here]
  • Kenya: Struggle to modernise traditional medicine is far from won [The Star]
  • Double Trademark Law Whammy this week over at Afro-IP [Afro Leo & Friends]
  • ICYMI: This Blogger is Now A Member of the Copyright Tribunal [Shameless Plug]
  • New Paper Looks At Differential Protection For TK, Folklore [IP-Watch]
  • Creative Markets and Copyright in the Fourth Industrial Era: Reconfiguring the Public Benefit for a Digital Trade Economy [Okediji]
  • 5th Global Congress on Intellectual Property and the Public Interest [Register Here]

For more news stories and developments, please check out #ipkenya on twitter and feel free to share any other IP/ICT-related items that you may come across.

Have a great week-end!

No Making Available Right, No Royalties from Multichoice Signal Distribution

GRH Consulting Diagrammatical View of Broadcasting Copyright Satellite Signal Distribution

This blogpost has been prompted by two recent developments in Kenya and Namibia. In Kenya, the High Court recently delivered a ruling in the case of Music Copyright Society of Kenya Limited & another v Multichoice (K) Limited & another [2016] eKLR in which the court dismissed the copyright infringement suit filed by the collective management organisation MCSK against Multichoice. Meanwhile in Namibia, a recent report here reveals one of the reasons why Southern African Music Rights Organisation (SAMRO) which receives royalties from Multichoice has failed to distribute them to other concerned African copyright societies.

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Kenyans Pay Three Times More Than South Africans to Use Sound Recordings: Lessons from Appeal Court Judgment in SAMPRA v. Foschini Retail Group & 9 Ors

retail-photo-1

Recently, Kenya Copyright Board (KECOBO) published on its website here the proposed 2016 collecting society joint tariffs for musical works, sound recordings and audio-visual works. A copy of these joint tariffs is available here. In order to ensure public participation before the approval of these tariffs, KECOBO will convene an open half-day public forum to be held next week on February 10th 2016 at the Auditorium of NHIF Building starting at 8:30am.

This blogpost will focus on the tariffs for sound recordings since they have recently been the subject of thorough debate and analysis in South Africa’s Supreme Court of Appeal. It is hoped that the South African experience will be useful to Kenyan users in their negotiations with collecting societies on reasonable tariffs to pay for use of copyright works.

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Demystifying the Role of Copyright as a Tool for Economic Development in Africa: Tackling the Harsh Effects of the Transferability Principle in Copyright Law

samro---guitarist

“It is…submitted that the system of alienable copyright is not conducive for countries in Sub-Saharan Africa and cannot, unless the legislatures of these countries intervene, ever give rise to a sustainable, home-bred and poverty alleviating industry.” – JJ Baloyi, 2014.

This blogger has recently come across a compelling article titled “Demystifying the Role of Copyright as a Tool for Economic Development in Africa: Tackling the Harsh Effects of the Transferability Principle in Copyright Law” written by JJ Baloyi in the South African Potchefstroom Electronic Law Journal. A copy of the article is available here. The central argument in Baloyi’s article is that the transferability principle in copyright law has had the inadvertent effect of stifling copyright-based entrepreneurship, and thus economic development in Sub-Saharan African countries that inherited copyright laws from their erstwhile colonial masters, England or France.

This blogpost discusses Baloyi’s well-written article and examines its implications for Kenya especially in light of the possible solutions put forward to tackle the ‘harsh effects’ of the system of assignment under copyright within Africa.

Baloyi’s article asks the question why many Sub-Saharan African countries, though having copyright and related rights laws and though generally endowed with rich cultural resources, have not been able to realise significant economic development and growth from the economic exploitation of intellectual property (IP) works and legally-protectable expressions emanating from such resources. Baloyi, former General Counsel at SAMRO, attempts to answer this question with a focus on the music industry where he draws most of his insights, observations and experience.

The article submits that there are several sets of barriers hindering musical entrepreneurship in Africa including psychological barriers, barriers in relation to the business environment, barriers relating to external ability and barriers in relation to the influence of demographics.

On psychological barriers, the article starts by appreciating the stress and hard work involved in giving us great musical pieces that we, as society, have become accustomed to. In this regard, the copyright regime demands that musicians exert themselves through their skill, time and judgment in order to create works that are original originating from their own efforts rather than slavish copies of works produced by the efforts of others. Therefore the article submits that expecting musical artists to be entrepreneurs in addition to being creators, is requiring more than the ordinary from them! Nonetheless these creators should be encouraged to be entrepreneurs even though it is accepted that not all artists will be entrepreneurs, just as not all lawyers can be entrepreneurs, for instance! Therefore artists who surround themselves with good advisors, would only need to display an entrepreneurial mind-set and leave the entrepreneurial activities to others.

left-brain-right-brain

Still on psychological matters, the article argues that the possession of IP within an environment where there is a strong IP protection regime is a strong determinant of entrepreneurial growth aspirations. Therefore, ownership of copyright in such an environment should be a strong motivation for artists to be involved in entrepreneurial activities.

Regarding barriers in relation to the business environment, the article observes that the lack of social networks becomes crucial in two instances, firstly collaborations where an artist seeks to jointly author a musical work with artists endowed with different skills and secondly marketing where an artist decides to market his own musical works.

The article gives primary focus to the lack of resources which it maintains is the main difficulty experienced by artists in Africa in respect of securing funding for their music entrepreneurial endeavours. In this regard, the article observes that most authors of musical works find themselves with no option but to assign i.e. transfer ownership in, their copyright to music publishers under terms that are highly unfavourable to the authors. It follows that once these authors have accumulated enough savings over time (due to the barriers relating to demographics) to incorporate and market their own publishing and recording companies, they find it difficult to engage in entrepreneurial activities relating to their copyrights as these rights have long been assigned to others. This so-called “endless cycle” is the main problem Baloyi seeks to address through his article.

Therefore the article argues that the artists’ lack of resources necessary to engage in entrepreneurial activities vis-a-vis their copyright works denies them the enjoyment of the rent-creation benefits under copyright licensing whereby the copyright owner may grant either an exclusive or a non-exclusive license to a user, in exchange for payment or compensation. Therefore these licenses would be able to earn the artists (and their heirs in title) income in the nature of rents (i.e. royalties) for the duration of the copyright.

thelionking

In light of the above, the article argues that Sub-Saharan African countries should develop its copyright laws to address concerns relating to the internal conditions and developmental needs of their countries. This article points out the examples of United States, Canada, the European Union and India which have moulded their copyright laws in light of their unique prevailing circumstances to produce home-grown solutions. In this regard, the article submits that beyond the minimum standards required in Berne and TRIPs, African nations can craft provisions that would safeguard the interests of their creators while not offending their international obligations.

The article is categorical that the dualist systems in common and civil law traditions of African countries result in the “endless cycle” where authors cannot exploit their copyright works as explained above. In this regard, the article refers favourably to the German system of author’s rights (a monist system) where the economic rights are seen as being interwoven with the moral rights and thus cannot be separated out, making them incapable of being assigned. The article argues that the monist concept of authors’ rights is consistent with the human rights approach to intellectual property rights espoused in South Africa and other Sub-Saharan African countries.

The legislative and policy solutions put forward in the article include, the use of reversionary provisions in copyright legislations, structuring music business contracts to safeguard the interests of artists and strengthening the role of collective management organisations (CMOs). In conclusion, Baloyi appeals to the legislatures in Sub-Saharan Africa to take advantage of the evolutionary nature of copyright and its changing paradigm internationally:-

“Rather than holding to the tenets of a system that has so far failed their countries, it would be responsible for the legislators of these countries to start thinking of those elements in other copyright systems that they can incorporate into their laws to unshackle their authors from the harsh effects of the transferability rule.”

Lessons for Kenya: South African Copyright Tribunal Sets Aside License Tariff for Use of Sound Recordings

PicknPay

It is recommended that a tariff to be set by the tribunal should neither be too high nor too low, but a tariff which the owners of the royalty will realise profits on the one hand and the consumers will purchase voluntarily. It is hard, in my view, to satisfy the preferences of either party. It has already been indicated that I am not tasked to judge as to which case is superior in law but to set a tariff that may be said to be reasonable. – Foschini Retail Group (Pty) (Ltd) and 9 (Nine) Others v South African Music Performance Rights Association (0003/2009) [2013] ZAGPPHC 304 at Paragraph 76.

Recently this blogger reported a major victory for Kenya’s related rights collective management organisations (CMOs) when the court upheld their statutory mandate to license for the communication to the public right (See here). It is clear that the majority of these disputes between the related rights CMOs and users arise because the latter contest the license fees charged by these CMOs. The genesis of this contestation stems from the users’ perceived “double taxation” of paying both a copyright CMO on the one hand and the related rights CMOs on the other hand.

In this regard, this blogger has argued on several occasions (see here, here and here) that the Competent Authority must be immediately operationalised to deal with the rising cases of CMO-user disputes. Meanwhile, in South Africa, the Copyright Tribunal (equivalent to the Competent Authority under the Kenya Copyright Act) has recently issued a landmark judgment in which it set aside the license tariff for retailers as fixed by the South African Music Performance Rights Association (SAMPRA) holding that the tariff was not reasonable and proceeded to set a tariff to be applied by SAMPRA. In addition, the Copyright Tribunal ordered SAMPRA to pay the the retailers’ costs of referring the matter to the Tribunal.

For Kenya, this judgment is of great importance as the tariff determined by the Copyright Tribunal in South Africa is significant lower than that of the concerned related right CMO in Kenya. Therefore this blogger submits that there is a need for a review of all tariffs set by related rights CMOs using the methodology of the South African Copyright Tribunal.

In the present case, the retailers, namely Foschini Retail Group (Pty) (Ltd), Pepkor Retail Limited Stores, Just Kor Fashion Group (Pty) (Ltd), Mr Price Group Limited, Pick ‘n Pay Retailers (Pty) (Ltd), Truworths Limited, New Clicks SA (Pty) (Ltd), Dunns Stores, Metrotoy (Pty) (Ltd) and Young Designers Emporium (Pty) (Ltd) contended that SAMPRA had unilaterally set a tariff, and that it basically adopted a take-it-or-leave-it approach, when demanding payment. The retailers claimed that the tariff was inflated and without economic justification. They said that they had tried to negotiate with SAMPRA, but that the parties had been unable to reach agreement, hence they referred the matter to the Copyright Tribunal for determination.

As many know, the South African Music Performance Rights Association (SAMPRA) is a national, non-governmental, organization that licenses to third parties specific copyrights that vest in record companies that are members of the Recording Industry of South Africa (RiSA). It is therefore clear that SAMPRA’s equivalent in Kenya is the Kenya Association of Music Producers (KAMP).

In response to the retailers’ contentions, SAMPRA claimed that its tariff was reasonable. It stated that its tariff was bench-marked with international best practice, with reference to the UK, Australia and Canada being mentioned. SAMPRA’s tariff was based on the square meterage of the ‘audible area’, in other words those parts of the store where the music can be heard even if they are inaccessible to customers. Therefore according to SAMPRA’s tariff, the annual fee for a store of 51 to 100 square metres was ZAR 1000.00, whereas the annual fee for a store of 201- 300 square metres was ZAR 2000.00.

The Tribunal agreed with the retailers that the SAMPRA’s tariff was too high, even compared with lower tariffs in developing countries such as Australia. The Tribunal also agreed with the retailers that SAMPRA’s take-it-or-leave-it approach in setting its tariff was wrong both under the Copyright Act and the Collecting Society Regulations. In this connection, the Tribunal found that it would not be in the interest of justice to “cut and paste” the international practice without engaging the market forces prevailing in South Africa.

Therefore the Tribunal was of the view that tariff to be set must be a tariff that “optimizes public welfare”, in other words “a tariff that is neither too high nor too low, by which the service providers would realize profits, whereas the consumers would purchase voluntarily”. The Tribunal therefore set a tariff which, for example, saw the annual cost for shops of 50 to 100 square metres drop down to ZAR 389.00, whereas the annual fee for shops of 200- 300 square metres was set at ZAR 620.00.

As alluded to above, the tariff set by the Tribunal does not compare favourably with KAMP’s tariff here in Kenya. According to KAMP’s recent tariffs available here, the annual cost for shops of 50 to 100 square metres is currently set at KES 6500.00 which is approximately ZAR 650.00. In other words, a Kenyan shop half the size of a South African shop pays twice as more in license fees per year.

In light of the above, this blogger submits that there is a pressing need for the relevant government agencies to intervene and regulate the license tariffs, terms and conditions imposed by CMOs in Kenya to protect the public interest.

The Lupita Factor as Kenya Prepares to Celebrate World Intellectual Property Day 2014

world ip day 2014 movies a global passion

The theme selected by the World Intellectual Property Organisation (WIPO) for this year’s World Intellectual Property (WIP) Day celebrations, “Movies – a Global Passion”, could not be a better fit for Kenya. From an intellectual property (IP) perspective, there appears to be a renewed focus on the audio-visual industry (television and film) in Kenya, culminating in the introduction of section 30A which introduced the right to equitable remuneration for use of audio-visual works (see my comments on section 30A here, here, here and here). More recently, Kenya successfully negotiated and signed the WIPO Beijing Treaty on Audiovisual Performances (See my comments on Kenya and the Beijing Treaty here).

lupita by thewiredotcom

Enter: Kenyan Actress Lupita Nyong’o. Earlier this week, Kenya joined the rest of the world in celebrating Lupita’s Oscar win for Best Actress in a Supporting Role. Lupita’s sterling performance as an abused servant in the movie “12 Years A Slave” undoubtedly put Kenya on the global stage and the 31 year old actress becomes the first Kenyan to win an Academy Award.

Read the full article here.

#ipkenya Weekly Recap of Intellectual Property News from Around Africa

This week, IPKenya focused on South Africa’s recently released Copyright Review Commission Report and shed light on some of the emerging issues surrounding copyright administration of collecting societies both in the South and in Kenya. The post is available here.

Here are some of the other important IP-related stories IPKenya came across this past week:

– “Should Colour be Registrable as a Trade Mark in Kenya?” [Strathmore CIPIT Blog]

– Kenya: local artiste DNA sues bank for copyright infringement and passing-off [The Standard]

– “South African photographer – images tell a story, but who owns the copyright?” [Adams & Adams]

– Zambia: Patent and Companies Registration Agency (PACRA) Reviewing Intellectual Property Laws [The Times]

– Kenya: “State warned on ditching copyrighted software” [The Standard]

– Nigeria: Intellectual property rights to get federal government protection [The Business Day]

– “Medals, Models & Moguls” – IP Rights and Fashion Roundup [Stellenbosch Chair of IP]

– Kenya: “Why companies need intellectual property policies” [The Business Daily]

– South Africa: Rev. Abe Sibiya appointed new chairman of SAMRO [SAMRO]

– Africa’s largest collecting society changing from company limited by guarantee to a cooperative? [YouTube]

– “The GAP Widens…” – Ownership and use of the GAP trade mark in South Africa [Spoor & Fisher]

– “Kenya’s M-PESA technology & emerging intellectual property issues” [Cayman Financial Review]

– South Africa: “Patently Wrong – The jury’s verdict in Apple v Samsung” [Stellenbosch IP Chair]

– “Climate change and adaptation in Africa: evidence from patent data” [TradeMark Southern Africa]

– Kenya: Safaricom seeks out-of-court deal in copyright dispute. [The Business Daily]

– South Africa: “CRC Report 2011: DALRO licensing agreements” [Copyright & Education]

Finally, for all IP enthusiasts in Kenya, please note that there’s an upcoming IP Check-in Session on 13th October 2012 at Strathmore University. The discussion topic will be “Cultural Expressions and Traditional Knowledge: Protection Mechanisms, Modalities of Management and Commercialisation, for Community Benefit”
IPKenya urges you all to mark this date on your calendars, come prepared to brainstorm and share ideas on how we should develop this potentially fourth branch of IP in Kenya.