Music Royalties: Criminal charges laid against Tiger’s Milk, La Parada

The South African Music Performance Rights Association (Sampra) has opened a criminal case at the Woodstock police station against the La Parada and Tiger’s Milk restaurants.

Charges have been laid against the Life and Brand Portfolio restaurant group for allegedly failing to pay royalties.

In a press statement, Sampra says the restaurants have been playing music belonging to music artists and record companies at their establishments in a manner that violates copyright laws.

Along with Tiger’s Milk and La Parada, the Life and Brand Portfolio restaurant group also owns Harbour House, Grand Africa, Live Bait, The Lookout, Old Town Italy and Lucky Fish and Chips.

ROYALTIES OVER INTELLECTUAL PROPERTY

“The artists whose music is used by these restaurants will not be able to earn Needletime Rights royalties even though these restaurants are making money…as a result of using [the artists’] intellectual property,” Sampra’s statement read.

In the music industry, Needletime Rights refers to the right of performers and recording companies to receive money (known as royalties) whenever a piece of their music is broadcast in public.

Sampra is a Collective Management Organisation (CMO) that administers Needletime Rights on behalf of over 40,000 music artists and 6000 record companies in South Africa.

“Over the past four years, we have been earnestly trying to negotiate with Life and Brand Portfolio to pay the licence fees due as we are aware that they are using our members’ music in their establishments,” said Pfanani Lishivha, CEO of SAMPRA.

“We have now opened a case against Life and Brand Portfolio for their illegal and unethical conduct as we cannot stand by and watch them exploiting the works of our recording artists. We must ensure that recording artists get what is due to them.”

Lishivna told the SABC that Life and Brand Portfolio was not disputing the fact that they owed royalties, but were still withholding them.

“What are we expected to do when somebody says, I know what the law says…and I am using your product, but I am not going to pay you?” Lishivha added.

“There is absolutely nothing else you can do other than taking legal action against such a group.”

RESTAURANTS SAY MUSIC LICENSES ARE ‘COSTLY’

Meanwhile, CEO of the Restaurant Association of South Africa, Wendy Alberts, says obtaining licences to play music at restaurants is a costly endeavour.

“It is not necessarily about the royalties that are needed to be paid back to the performers,” Alberts says. “I think it is the cost to have these licences.”

“The tariff costs on these really put on a blanket approach and does not take into account the business models that the restaurants need to pay, it makes it unaffordable.”

“And sometimes, we need to switch the music off completely for those establishments to stay open, as opposed to getting to a negotiation with the licence organisation to get to a medium which is affordable for the restaurant to be able to participate in.”