SABC owes R28m in royalties

Two weeks ago more than 1500 members of the Recording Industry of South Africa, including the four major recording labels, Sony BMG, Warner Music Gallo Africa, EMI and Universal Music lodged a high court action in a bid to get the SABC to cough up funds owed to them. by Gabisele Ndebele

The Times is in possession of a letter issued by Risa's operations director, David du Plessis, to its members that outlines the court action between the two parties.

Further to their demands for compensation, Risa has also applied for the SABC to be interdicted from flighting music videos on all three of its channels until payment is resolved.

"The recording labels and owners of videos had given these videos to the SABC in good faith, but now that they are failing to negotiate we have resorted to this action," said Du Plessis.

The letter details a string of communications in which the SABC made several excuses for non-payment, often requesting extensions, but never owned up.

Risa said it had had enough of the SABC's delaying tactics.

The SABC and Risa have had long-standing relations, with the broadcaster previously making payments on a quarterly basis. This, however has not been the case since 2005, according to Du Plessis's letter.

The SABC possesses more than 12 000 digitised music videos provided to it by Risa over the past four years.

The SABC, however, is defending the claim on the basis that none of the Risa members was the legal owner of the rights to videos; that it was not party to agreements with Risa; and that its chief financial officer and director of content enterprises had not had the necessary authority to enter into any form of extension agreement with Risa.

"The reasons put forward by the SABC for its refusal to make payment are clearly contrived, and are essentially dishonest," Du Plessis said in the letter.

Gallo representative and Risa board member Leeanne Billett said the SABC was cheating artists out of their livelihood.

"If Risa doesn't receive a usage report from the SABC, the record companies in turn cannot fairly distribute royalties to their artists.

"This affects the musicians, like Phuz'ekhemisi, who is not being played on private broadcasters. His market is on the SABC. That means he will be affected hugely," said Billett.

Recording label 999 boss Arthur Mafokate said he was willing to back Risa, but he admitted that desperate times would force him to consider negotiations with the SABC.

"If this matter is not resolved fast, some of us and our artists will starve. I guarantee you the smaller guys will in the meantime make deals with the SABC if push comes to shove," said Mafokate.

By the time of going to print, SABC spokesman Kaizer Kganyago had not respond to e-mailed questions from The Times.

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