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By Siphesihle Dlamini
Aimed to support local artists and uphold copyright laws, the Eswatini Copyright & Neighbouring Rights Society (ESWACOS) has proposed a new annual copyright fee for DJs operating within the kingdom.
According to the proposal, local DJs will be required to pay E1,860.98 per annum.
This decision comes considering ongoing discussions regarding the protection of intellectual property rights in the entertainment industry. Mmeli Hlanze, the Executive Director of the Eswatini Copyright & Neighbouring Rights Society (ESWACOS), has revealed that the copyright licensing process is set to commence in the first quarter of 2025.
Hlanze provided a detailed example of the proposed license fee calculations for various sectors, with a particular focus on public service broadcasters. For instance, a radio station that broadcasts 24/7 and plays approximately eight hours of music per day would incur a substantial licensing fee.
The calculation, based on different time slots and the nature of music played, results in a total annual fee of E748,396.00 [(E310.67 × 2) + (E258.89 x 2) + (6227.82 × 4) × 365)]. This figure is derived from a structured formula that accounts for the intensity and prominence of music usage throughout the day.
Other sectors are also set to contribute to the licensing ecosystem. Mobile DJs will be required to pay an annual fee of E1,860.98, while services such as Caller Ring Back Tones will incur a fee of 5 per cent of the gross revenue generated.
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Jukebox owners will contribute E1,139.50, and nightclubs, along with featured entertainment venues, will face an annual fee of E12,012.90 – an amount that notably includes Value Added Tax (VAT).
This strategic move aims to bolster the rights of local artists and foster a more vibrant creative economy in Eswatini. Hlanze elaborated on the meticulous roadmap ESWACOS has followed to lay the groundwork for this licensing initiative.
The organization has successfully navigated various developmental stages, including stakeholder mapping, engagement, and strategic planning. These foundational elements have been vital in aligning ESWACOS with international standards and best practices, ensuring that local artists are afforded the protection and recognition they deserve in a globalized market.
One of the key upcoming phases is the membership stage, where artists and stakeholders will have the opportunity to register with ESWACOS. Hlanze emphasized the importance of establishing clear membership rules and processes, which will be rolled out in tandem with the licensing framework.
This initiative is expected to increase participation among artists, providing them with a platform to assert their rights and receive fair compensation for their work.
A critical component of the licensing process involves the establishment of music tariffs, which are guided by specific principles. Hlanze explained that the type of usage—whether it is featured music or background music—will play a significant role in determining the applicable fees. Additionally, the classification of usage—categorized as essential, important, or incidental—will further refine the licensing approach.
The capacity of the user and volume of usage will also be considered, ensuring a fair and equitable system that reflects the diverse landscape of music consumption in Eswatini.
To inform their tariff setting, ESWACOS has benchmarked against several comparable markets, including South Africa, Botswana, Malawi, and Kenya.
This cross-sectorial comparison involved a thorough analysis of each country’s currency and Consumer Price Index (CPI), allowing ESWACOS to devise a competitive and sustainable framework for local artists.
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ESWACOS’ vision is to create a robust framework that not only protects the rights of artists but also encourages the growth of the music industry in Eswatini.
Fostering a culture of respect for copyright and neighbouring rights, ESWACOS aims to empower artists, promote creativity, and ultimately enhance the cultural landscape of the nation.
