A certain portion of monies traditionally paid out to SAMRO members may now be made illegal

Author, journalist and SA music industry educationalist David Chislett brings to light a new law that could affect musicians’ royalty payouts.

In a completely unexpected twist involving the new companies act of 2008, the South African Music Rights Organisation (SAMRO) will no longer be able to pay out certain monies to its members as it has done in the past.

As a Company Limited by Guarantee under previous companies acts, SAMRO could pay interest earned from unclaimed royalties and investments to its members, which it has done every December since its inception… until December 2011 that is. Known as Non-royalty revenue payments, these and possibly its retirement fund and funeral fund may now be deemed effectively illegal.

It is deeply ironic that an effort to tidy up the companies act should hit those that can afford it the least. SAMRO is in the process of approaching the courts for a clear ruling as the Act does not seem 100% clear on their position, considering their role as a collections agency and investor on behalf of its members.

Even more ironic is that many members were not even aware of these non-royalty revenue payments from SAMRO and may not even miss them if they go! The new act does not affect SAMRO’s role as a collector and distributor or artist royalties in any other way.

SAMRO has, to its credit, created a dedicated call centre line with extended operating hours to answer questions regarding the situation from their members. They can be reached at 0800 247 247. Members can alternatively send a “Please Call Me” to 079 269 3417 and a SAMRO representative will call you back.