Economy

Musicians to get half of Skiza billions as Bill sails to last reading

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Kenyan R&B and reggae musician Kevin Waire, known by his stage name Wyre performing at Pamoja Festivals at Ngong Racecourse, Nairobi on Saturday, October 30, 2021. PHOTO | DENNIS ONSONGO | NMG

Musicians are a step away from earning 52 percent of sales generated by Safaricom’s Skiza tunes after MPs approved a proposed copyright law during the second reading.

This means that musicians will earn more from ring back tunes if lawmakers pass the Copyright (Amendment) Bill, 2021, sponsored by Homa Bay Woman Representative Gladys Wanga.

The Bill now awaits the last reading to become law.

“The Bill stipulates that the parties shall share the net revenue from the sale of ring back tunes...the artist or copyright holder at fifty-two percent.”

The Bill also provides that premium rate service providers will get a seven percent share of the net revenue from the sale of ring back tunes.

Telecommunication operators, including Safaricom, Airtel and Telkom Kenya would be entitled to 16 percent of net revenue.

“The object of the Bill is to provide for a fair formula for sharing of revenue from ring back tunes between the artistes or copyright holders and the telecoms companies,” Ms Wanga said in the memorandum.

This revenue sharing has been a bone of contention among sector players. Under the old sharing formula, artistes would get 16 percent, 25 percent goes to tax, while Safaricom retained 51 percent share.

Safaricom later adjusted the artistes’ share to 40 percent of proceeds. The proposed law seeks to push this past the 50 percent mark.

The Bill further bars internet service providers from haphazardly taking down content that is alleged to be an infringement of copyright.

It states that a person whose rights have been infringed by content accessed through an internet service provider may request for the content to be removed.

Skiza is an advertising service in which an audio message is played on the outgoing calls of Safaricom subscribers as they wait for their calls to connect.

Callers on the Safaricom network pay up to Sh1.50 daily for every local Skiza tune they upload as a ringtone.

Safaricom in 2009 launched Skiza service, giving artists 7.5 percent of the revenue.

It has over time been increasing artiste’s share of revenue on the back of negotiations with the Kenya Association of Music Producers, Performers Rights Society of Kenya and Music Copyright Society of Kenya.

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