SAMPRA resolves music royalty dispute with restaurant group

The development comes days after SAMPRA filed a complaint at Woodstock Police Station in Cape Town, stating that eateries operated by Life & Brand Portfolio had been playing music belonging to recording artists and record companies unlawfully.

SAMPRA, which administers needletime rights on behalf of more than 40 000 recording artists and 6 000 record companies, complained that the restaurants had refused to pay the applicable licence fees as stipulated by law.

However, the two organisations now appear to have buried the hatchet after SAMPRA released a statement on 7 March announcing that it had reached an agreement with Life & Brand Portfolio over royalty fees.

“We are pleased to announce that SAMPRA and Life & Brand Portfolio have successfully resolved the impasse by reaching an agreement on the payment of neighbouring rights licence fees,” SAMPRA CEO Pfanani Lishivha said.

“Following constructive discussions between the two organisations, Life & Brand Portfolio CEO Trevor Wollheim has committed to signing a contract with SAMPRA and paying the applicable neighbouring rights licence fees.”

On his part, Wollheim said: “We love South African music and all our establishments showcase how proudly South African we are. When we met SAMPRA, we expressed our regret at the oversight and undertook to remedy the situation as soon as possible.”

SAMPRA said Life & Brand Portfolio had infringed needletime rights, which allow record companies and recording artists to earn royalties whenever their commercially released tracks are used in public.

“Due to the productive discussions between the parties, SAMPRA has agreed to withdraw the case upon receiving payment of the licence fees by Life & Brand Portfolio,” Lishivha added.

Before the agreement was reached, SAMPRA said: “This effectively means that 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 in their restaurants as a result of using their intellectual property.

“Over the past four years, we have been earnestly trying to negotiate with Life & Brand Portfolio to pay the licence fees due as we are aware that they are using our members’ music in their establishments. However, Life & Brand Portfolio is adamant in their stance of using music illegally and therefore depriving recording companies and artists of their right to earn income from their music.”

Life & Brand Portfolio owns restaurants and franchises such as La Parada, Tiger’s Milk, Harbour House, Grand Africa, Lucky Fish and Chips, Live Bait, The Lookout and Old Town Italy.