The South African Music Performance Rights Association (SAMPRA) has dropped its charges against South African food chain group Life & Brand Portfolio for nonpayment of royalties.
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The development comes just days after SAMPRA filed a complaint at Cape Town’s Woodstock Police Station, alleging that Life & Brand Portfolio-operated restaurants were illegally playing music by recording artists and record labels.
SAMPRA, which administers needletime rights on behalf of over 40 000 recording artists and 6 000 record companies, complained that the restaurants refused to pay the required licence fees.
However, the two organisations appear to have reconciled after SAMPRA announced on March 7 that it had reached an agreement with Life & Brand Portfolio on 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.
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‘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.’
In response, Wollheim said that the group loved South African music and that all their establishments showcased how proudly South African they were. ‘When we met SAMPRA, we expressed our regret at the oversight and undertook to remedy the situation as soon as possible,’ he said.
SAMPRA said Life & Brand Portfolio had infringed on 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 stated: ‘This effectively means that the artists whose music is used by these restaurants will not be able to earn needletime rights royalties, despite the fact that these restaurants make money by 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.
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