Flaunt Weeekly
The CoMusic Copyright Society of Kenya (MCSK) bank account has been frozen by a Nairobi court pending the determination of an application filed by another Collective Management organization. (CMO)
Senior Resident Magistrate R.L. Musiega also blocked usage of MCSK’s MPesa payroll number until a case filed by the Performing and Audi-Visual Rights Society of Kenya (PAVRISK) has been determined.
“That pending the inter partes hearing of this application, this court is pleased to freeze and restrict MCSK Revenue Collection Account number 5527990048 held at NCBA Bank Westlands Branch and Safaricom MPesa pay bill number 5129000,” stated the magistrate.
PAVRISK submitted that on December 17, the court had frozen the MCSK revenue collection account and Safaricom MPesa pay bill number.
The organization further noted that the court had also ordered MCSK to provide certified statements of all transactions made on the MCSK revenue collection account.
There was also an interlocutory injunction restraining MCSK from issuing joint KAMP-PAVRISK invoices or licenses or exploiting the trademark in any way.
However, the court heard that the bank account was unfrozen in December on the condition that Sh7 million be paid into a joint account in the names of the lawyers representing the parties.
Despite the court order, MCSK allegedly continued to issue joint KAMP-PAVRISK-MCSK invoices and licenses, collecting the full tariff amounts into MCSK’s revenue collection account and pay bill number, in violation of the court directives. In that regard, PAVRISK petitioned the court to enforce compliance by freezing the bank account and Safaricom Paybill number.
Mr. Joseph Njagi The Chief Executive Officer of PAVRISK, argued that the issuance of the bills and licenses by MCSK was in flagrant disobedience of the court orders.
“However, it has come to the attention of the plaintiff that despite being aware of the court orders, the defendant (MCSK) has been issuing joint invoices and licenses and collecting the full tariff amounts into its MCSK Revenue Collection Account held at NCBA Bank, Westlands Branch, and Paybill number 5129000 in the name of Music Copyright Society of Kenya Ltd,” Mr. Njagi said.
The court directed that the case be mentioned on March 19 for instructions.
The case only further highlights the ongoing battle by CMOs to control the millions of shillings generated by artists’ musical works, which are then paid out as royalties. CMOs are mandated to collect the money on behalf of each artist who is a member of any particular CMO. For years, CMOs have been accused of embezzlement and mismanagement of these funds, as CMOs continue to pay out less than what is required – 70 percent, with CMO managers walking away with most of the loot. In a previous interview, Ezekiel Mutua, MCSK CEO revealed that the CMOS collectively collect an average of Sh300 million in a year as music royalties.
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