Safaricom to Pay Skiza Artists/Copyright Owners Directly

Kenya’s music industry is about to experience a major shift. Safaricom has announced that it is implementing Section 30C of the Copyright Act, a legal provision requiring that revenue from ringback tones (Skiza tunes) be paid directly to copyright owners rather than through intermediaries. This follows a recent High Court ruling reinforcing artists’ rights to receive full and transparent compensation for the use of their music.

What is Section 30C of the Copyright Act?

Section 30C, introduced through the Copyright (Amendment) Act 2022, mandates telecommunication companies to pay copyright owners of musical works and sound recordings directly for revenues generated through ringback tones and similar services. The law seeks to remove unnecessary middlemen, ensure artists receive their rightful earnings, and create accountability and transparency in how royalties are distributed.

Why is Section 30C Important?

For years, many Kenyan artists have complained of underpayment, delayed payments, or lack of clarity about how much their music earns on digital platforms. With Section 30C:

• Artists receive money directly.This eliminates opaque channels where revenue could be lost before reaching creators.

• Fair compensation is guaranteed.Every copyright owner—including composers, performers, and producers—is entitled to a share of the income.

• Accountability improves.Payment records will now be directly tied to the artists’ identities and works, reducing disputes.

Ultimately, this law strengthens intellectual property rights and supports musicians in earning sustainable livelihoods from their creativity.

What Has Court Directed?

In its ruling, the High Court ordered that:

1. Safaricom and Airtel release all funds held under interim court.

2. The Kenya Copyright Board (KECOBO) develop and maintain a comprehensive database of all artists and their works within six months, with input from industry stakeholders.

3. Payments to artists continue under existing arrangements until the direct-payment system is fully operational.

4. A transition period of six months has been granted to allow all parties — including telcos, content providers, and regulators — to prepare systems and registers for smooth implementation of direct payments.

Safaricom’s Compliance Measures

Safaricom has started putting systems in place to meet its obligations:

• Detailed Artist Register: Skiza Partner companies must provide full Know Your Customer (KYC) details of every artist whose music is on the platform, including their payment details.

• Indemnity Requirements: Content Service Providers (CSPs) must sign indemnity forms confirming they have supplied accurate ownership information and secured all necessary rights.

• Audit-Ready Records: CSPs must maintain up-to-date registers of artists and Skiza tones. Safaricom has provided standard templates to guide proper recordkeeping.

These measures ensure that when direct payments begin, funds reach the correct recipients without delay or dispute.

What Does This Mean for the Music Industry?

The implementation of Section 30C is expected to transform Kenya’s music landscape:

• Increased Artist Revenue: Artists will now earn directly from the source, ensuring they get a fair share of Skiza tune income.

• More Transparent Royalty Systems: With KECOBO developing a national database, disputes over ownership and payments will reduce significantly.

• Incentive to Create: As musicians see reliable earnings from their work, investment in high-quality production and songwriting is likely to rise.

• Ripple Effect on Other Platforms:Other digital service providers (DSPs) are expected to follow Safaricom’s lead, aligning with fair compensation practices across the industry.

A Fresh Breath for Kenyan Music

Section 30C’s implementation marks a new era where creativity is rewarded more transparently and fairly. By ensuring artists are directly compensated, Kenya is taking a bold step toward a sustainable, thriving music economy—one where every voice counts, every note matters, and every creator is recognized.

Source: www.bkaybkay.com