Johannesburg — THE South African Music Rights Organisation (Samro) says it has no choice but to take the National Credit Regulator (NCR) to court, because advance payments in royalty fees outlawed under the National Credit Act are the only regular income for some musicians.
Samro, which represents about 7000 composers and musicians, many of them struggling to make ends meet, collects licence fees from music-users such as TV and radio stations and makes royalty payments to musicians.
These payments are not made regularly because of the delays in furnishing lists of music played and as a result musicians usually request advance payments, Samro spokeswoman Yavi Madurai said yesterday.
Advance payments have now been outlawed by the act.
Madurai said Samro would like to change its business model and pay the musicians regularly, but the delay in receiving the music schedules made it impossible. "If they provided the information earlier, we would pay earlier," said Madurai.
She said Samro had repeatedly pleaded with the users to fast-track the process, but nothing had changed yet.
Samro paid advances according to projected royalty payments and the money was then deducted with interest when payments were made.
Madurai said the act, signed into law in 2006, required musicians to provide pay slips, three months of bank statements and state their monthly expenditure.
"Because many do not have a steady income they can't provide all the required documentation," she said.
This year Samro had paid out only 26% of advance payments compared to last year.
NCR legal adviser Reana Steyn said the regulator would oppose the application. She said Samro's business model charged interest on the advances, so they had to be treated as loans.
"What they are doing is not different to what other people are doing ... These are loans until a court tells us they are not," said Steyn.
Music producer Oscar Mdlongwa said the application of the act on advance payments did not make sense.
Comments 1 to 1 of 1 Post a comment
To the writer of this thinly researched article - THE NCR is quite right, as SAMRO has been charging usurious interest rates for years to composers for lending them their own (musicians) monies. In effect SAMRO operates like an unlicensed bank. As to the truth of why so many musicians are in dire straits has a great deal to do with ruthless money mongers like SAMRO holding on to hundreds of millions and not distributing them.. see SAMRO 2007 financials at www.samro.org.za and ask for an explanation of: a. R332,688,000 in listed and unlisted investments b. R88,000,000 "pending distribution" whatever that means c. SAMRO, supposedly a non-profit org, made R63,000,000 last year of 'investment income'a return of more than 20% on members monies...some wealth preservation.....more like wealth creation..allegedly playing money games whilst members are hard up Worst now to waste members monies on stupid legal nonsense -taking on NCR- Perhaps Business Day should take a closer look at the antics of this allegedly non-profit org called SAMRO, especially it's financials, the alleged lack of taxes paid,and much more. Truth be told, it is the opinion, well held, that SAMRO has institutionalised a style of business that can be called corruption, and it's modus operandi has direct bearing on the poverty experienced by many musicians today. SAMRO'S financial year end is June...why don't you enquire as to the real reasons why SAMRO'S GM Finance.. a highly regarded CA, allegedly resigned on the spot and walked from SAMRO at the start of the June month... To add insult to injury..... SAMRO'S CEO takes R1.8 million ++++ (incl house etc), the deupty CEO takes R1.2 million ++++, and courtesy of the CEO, there are 8 x General Manager's at R700,000 per annum each!!!! starving musicians you say....hmmmmmmmm, its true. In the last financial year one local composer, the highest earner in the country, allegedly earned over R1 million for the year from SAMRO, one, the second highest, allegedly earned more than R200,000 for the year from SAMRO, and one allegedly earned more than R150,000 for the entire year from SAMRO. The next 197 allegedly earned between R30,000 and R149,000 each for the year. If SAMRO earned R292,000,000 income...you do the sums...why was allegedly no more than R20 million paid to locally to composers? This office speaks for the intellectual property interests of more than 200 SAMRO members, and there is serious disquiet to be heard. Further this office can and will substantiate it's allegations in any forum it is called to
Posted by Graeme Gilfillan graeme@nisaonline.com