Kenya: PAVRISK authorised to collect royalties during KAMP suspension

In a public notice, KECOBO said PAVRISK would collect royalties for rights ordinarily administered by KAMP under the existing licensing framework for the duration of the suspension.

The regulator directed that all revenue collected during this period must be held separately from PAVRISK's operational funds.

"All monies collected in respect of such right shall be deposited into a separate designated bank account, maintained independently from PAVRlSK's operational and distributable funds," KECOBO said.

The board added that the funds must remain in trust and should not be distributed, transferred or used until further written instructions are issued.

"The funds must not be distributed, transferred or used for any purpose until further written instructions are issued regarding their management and eventual distribution."

The arrangement follows KECOBO's decision last week to suspend KAMP's licence for three months after completing a regulatory review of the collective management organisation.

According to the regulator, the review examined KAMP's governance, financial management, royalty administration, licensing practices, regulatory compliance and overall performance as a licensed collective management organisation.

KAMP has challenged the suspension, disputing KECOBO's decision, which came after allegations of financial mismanagement within the organisation.

KECOBO has not indicated when it expects to conclude the suspension period or issue further directions regarding the management and distribution of the royalties collected by PAVRISK.