Court Fight Over Music Licensing Fees In South Africa

court fight over music licensing fees in south africa

According to a statement by Fedhasa, restaurants and hotels were previously charged for music played in public spaces only, but the changes made extend these fees to music played from individual TV sets in private hotel rooms.

"We are not disputing the usual fees that we have paying for over 30 years. What we are wanting clarification on from the court is the new fee where they are charging per TV set per hotel room," said Rosemary Anderson, national chair for South Africa at Fedhasa.

"Our members feel they shouldn't be paying these additional fees and that is why we have approached the court."

Anderson said Fedhasa and Samro have a good working relationship, which is why the two entities tried to resolve the dispute between themselves before Fedhasa went to court. The key point of contention in the debate between hospitality industry stakeholders and Samro is the definition of what constitutes a public performance.

Samro, meanwhile, has improved its fee collection capacity in recent years. According to a February statement by the organisation, Samro had a bumper 2024, growing total licence fee revenue by 15 year on year to R684-million. Samro attributed the growth to "diversified licensing" that has "unlocked new revenue streams". Just how much of that growth is attributable to the fees under dispute and what impact the court's decision will have on Samro's revenues remains unclear.