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Sony BMG responds to 94.7

24 Jul 2008

Sony BMG Africa earlier this week issued a statement in response to 94.7 Highveld Stereo's announcement that its 94.7 Music Shop initiative in partnership with eXactmobile had been put on hold because Sony BMG had withdrawn its consent.

According to the statement from Keith Lister, CEO of Sony BMG Africa:

In December 2007 Sony BMG gave Exactmobile the right to supply our tracks to 94.7 and to allow 94.7 to sell our tracks as digital downloads.
Thereafter, in March 2008, 94.7 decided to refuse to meet their obligations under the Copyright Act to pay needletime royalties on any tracks, including those belonging to Sony BMG.
The Copyright Act requires a broadcaster who broadcasts music tracks to either pay the tariff set by the owners of music tracks to the owners' licensing body, SAMPRA, or, if it wishes to dispute the amount of the tariff, to pay that amount into an ESCROW account pending the determination of the tariff by the Copyright Tribunal.
94.7 refused to follow either option.
This decision on the part of 94.7 meant that under the contract between Sony BMG and Exactmobile, 94.7 became prohibited from selling Sony BMG tracks.
If 94.7 want to sell Sony BMG tracks, then they will also have to pay needletime royalties on the same tracks, either to SAMPRA or into an ESCROW account pending the determination of the tariff by the Copyright Tribunal.
The same applies to all other broadcasters.