The South African Federal Hospitality Association (FEDHASA), a national trade association recognized for the hospitality industry, approached the South African High Court for declarative relief to determine the legality and scope of television licensing fees in South Africa.
Samro is a registered non-profit company that is tasked with managing music rights, including broadcasting and public competence rights, on behalf of its members, such as composers, writers, publishers and others of musical works. Through written acts of assignments concluded with the Members, Samro is assigned rights relating to musical works and is granted the exclusive right to administer, manage, license, enforce and commercialize these works in accordance with applicable intellectual property laws.
For over 30 years, hospitality industry members have been complying with Samro's licensing regime and pay annual fees for music use in restaurants, bars, Wheyers, meeting facilities and outdoor entertainment spaces, including poolside areas. In 2022/2023, Samro introduced additional licensing fees applicable to the same hospitality facilities, particularly for music accessed via television in individual rooms. This newly introduced fee will be charged per television in one room above the music license fees in the existing common area.
In trying to address this issue on behalf of members and the broader hospitality sector, Fedesa worked with Samro to explore the resolution. Despite the debate, the parties were unable to reach a mutually acceptable position on the issue. Fedhasa approached the High Court for declarative relief to obtain a judicial clarification on the legality and scope of these additional licensing fees and to ascertain the respective rights and obligations of the accommodation provider and Samro under the relevant statutory and contractual framework.
Fedhasa acknowledges Samro's important role in supporting South African music creators and remains committed to supporting the legal and ethical use of music within the hospitality sector. It is Fedhasa's hope that the outcome of this court process will provide certainty for both the hospitality industry and Samulo and strengthen the ongoing working relationship between the two organizations in a fair, transparent and sustainable way for all stakeholders.
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