msanii magazine premiere issue

July - September Issuean MCSK Quarterly Publication

Mag

azin

emsanii

Nonini,Habida, Alice K &Madtraxx

Featuring Top Earners:

MCSK FAQs

The Distribution Issue

2 | Msanii Magazine | -July-September 2013 | www.mcsk.or.ke

Dear MCSK Members,

It is our absolute pleasure to introduce to you our first official Society publication. Dubbed ‘Msanii’ which is Swahili for a com-poser, we found the name relevant to our cause...to make life beautiful for those who make life sound beautiful.

For our first issue, we are talking to some of the featuring Top Earners for the year 2012. Nonini, Habida, Alice Kamande and Madtraxx let us in on their secrets to being and staying on top of the music game.

The CEO, Mr. Okoth takes us through the journey MCSK has been embarking on especially on distribution and the scientific mode of distribution.

The legal desk will be highlighting and shedding light on some of the most frequently asked questions about MCSK. Keep on tweeting and emailing us. We are here to serve.

Also not forgetting our colourful pictorials on the Triple P launch at the Laico Regency among other events we have held in the past two quarters.

Finally, we shall be looking forward to July 20th of this 2013 when MCSK shall be having its second MCSK Gala Awards. Have a look at our poster for more details. The theme is ‘Kenya.’ Come dressed the part.

Enjoy our first issue.

Best,

MCSK Marketing.

With Georgina KamauDocumentation and Distribution Department is in charge of documenting all Members details’ which is personal information and musical works informa-tion as well as distribution of Royalties to the respective and lawful right hold-ers. Currently we have 7265 compos-ers/authors/publishers registered at the Society.

The department uses the scientific meth-od to ascertain royalty amounts to MCSK members. The system calculates the roy-

alty payable to each right holder accord-ing to the number of airplays a given work has had in all the broadcasting stations. This is for both local works and the rep-ertoire of affiliate societies. Although still fairly new and not fully accepted this has proven to be the most effective, genuine and transparent distribution in the history of MCSK. For the first time artist are paid by their works worth as opposed to equal amounts across the board regardless of works airplays.

This has been made possible since MCSK

contracted Digital Linkage the company that does the monitoring of 30 Radio & TV stations and avails logs to the D&D Department .These reports are then fed into the internal distribution software (WIPOCOS) and royalties are then cal-culated and detailed reports/statements availed.

Royalties are deposited into members KCB bankika accounts via a quick pay option which is the new official method of payment to members.

Note FRoM the

Note FRoM the DoCUMeNtAtIoN

& DIStRIBUtIoN DeSK

MARKetINGTeam

| Msanii Magazine | July-September 2013 | www.mcsk.or.ke | 3

Greetings to all!

Welcome to “Msanii”, a quarterly publica-tion of the Music Copyright Society of Kenya (MCSK). “Msanii” Swahili

for “The Musician” is your exclusive gateway to Kenya’s vibrant music industry which will high-light major news and developments as well as the various movers and shakers shaping the industry as we know it.

This inaugural edition of “Msanii” is an oppor-tune moment to reflect on just a few milestones as we near the close of the 2012-2013 Financial Year.

After successful negotiation and conclusion of a sui-generis license agreement with Kenya Copyright Board (KECOBO), MCSK hit the ground running and so far has made great strides towards efficient collection and distribu-tion of royalties.

The membership of the Society continues to grow from a membership of over 7,500 as at 30/04/2012. The membership has seen a growth of 14% and we believe that this number will con-tinue to grow. Everyday we see a new crop of music writers/composers emerging and apply-ing for registration as members.

A driving force in the growth in membership is the increase in the amounts distributed to mem-bers, albeit through the Scientific distribution. MCSK would further wish to inform its members and the general public of the running of its first ever (and second in Africa) scientific distribution of royalties using a software called WIPOCOS, developed by the World Intellectual Property Organization (WIPO).

During the recently concluded regional/county visits, we took some time to show members how music is monitored by our partner agency, Digital Linkage, and we were able to see how useful the monitoring service is. With the use of log sheets and playlists obtained from the moni-toring service, we are able to make payments to members based on actual music usage. Where there is no actual music usage data available, we have been able to use sampling method, either through music sales from ring tones and skiza tunes, and also by using log sheets and playlists of a similar broadcasting station. These are the best practices as applied all over the world and Kenya being no different must apply the best practices so that we may remain relevant in the music industry.

Further, as I had been mentioned earlier regard-ing rules and regulations, our license agreement with KECOBO requires our Society to comply with the distribution rules of the Society. Our rules under Article ‘3’ do provide that we must make payments based on music usage and where no data is available then we can make dis-tributions based on sample usage as provided under Article ‘13’of the said rules.

A key underlying principle when also making any distributions is that we cannot discriminate against any music being used . We MUST treat all music used in our country equally. This is provided under Article ‘5’(1) and ‘5’(2) of the Berne Convention of which Kenya is a signatory and as such we as a country are bound by this provision.

The above reasons are why we as a Society have

applied the scientific distribution of royalties as we have no choice. Our hands are tied and we must comply with the law and with the rules and regulations, both local and international that are in force.

We have in the past year had much involvement of members in the Society’s operations where a Budget Committee, comprising members democratically elected, was formed and whose principal role has been to be part of the budget making process.

In addition, we have had involvement by the Regional Committees in various processes involving Society matters on rules and regula-tions relating to documentation/approval and code of conduct for members. The said rules were drafted in consultation with the said com-mittee members.

These rules and regulations are indeed impor-tant for the smooth administration of the Society affairs. As the Society, on obtaining our License from KECOBO, were supplied with rules and regulations in the form of a License Agreement that we have to comply with. These rules and regulations have assisted the Society in its administration and there have been some posi-tive results which you will be able to discern from the audited accounts.

In the financial year 1/07/2011 to 30/06/2012, the surplus amounts-the amounts reserved for distribution, of the Society have almost doubled, and as we continue to grow, we will always aim at having a surplus of more than Kshs 100 mil-lion, and thereby enable us to distribute the bulk of these monies.

Part of the surplus was used in the distribu-tion within the past financial year and some of the monies is payable within the current financial year. The process of payment of royal-ties is therefore ongoing and we have on the 28/02/2013 declared another distribution for Broadcasting royalties and then on 30/04/2013 a further distribution for performances in public places. It is to be noted that the distribution applies to both our local members and also our international affiliate Societies.

During the same period, we have seen our col-lections grow by 20.5%. The growth is indeed commendable and we are sure of even increas-ing the collections further in the coming years.

Despite the high collections, a huge chunk of the collections was eaten up by the effects of inflation.We have however addressed this issue in the current financial year and I shall in the next financial year highlight the gains of our factoring in inflation in our tariffs.

EXPENSESWe are also pleased to report that the expenses of the Society grew only by 1.1% as compared to 10.8% during the last financial period. We have developed means and ways to even reduce this expenditure and one of these key measures has been to focus more on marketing the Society so that our reputation may speak for itself.

A key element of reduction of expenses is the willingness of the music users to comply with our license requirements as such eliminating the need for our licensing personnel having to go to the field and enforcing compliance. As

we have severally mentioned, the collection / enforcement costs do take up a huge chunk of the expenditure and we are working tirelessly to overcome this challenge. In this regard and as a marketing initiative, we embarked on the first ever MCSK AWARDS where we were rewarding those organizations and individuals that are the highest payers of license fees to MCSK. We also rewarded those organizations and individuals that have also been of assistance to the Society in achieving its mandate of collections and distributions of royalties. Most importantly, we recognized those of our members who excelled in terms of Airplay which translated to increased earnings of royalties. Through such an initiative and through the awareness created from such an event, we have more and more people becom-ing knowledgeable of the Society and the work-ings of the Society and in this way compliance is automatic as more and more people become aware of our role as a Society.

During the period under review the Memorandum and Articles of Association of our society was amended by putting in place various new structures and rules that have enhanced the governance of the Society. Part of the new provi-sions were the inclusion of the Election Rules of the Members of the Governing Council. The cur-rent Directors were thus elected through those stringent rules and thereafter executed a Code of Ethics and Conduct before a Commissioner for Oaths. It is expected that the Elections of the members of the Regional Committees will also be conducted in a smooth manner in the coming months, pursuant to the Election Rules that were also part of the amended Articles of Association.

The new Articles of Association also provided that 60% of the Social Cultural allocations be remitted to the MCSK Foundation. The Foundation has now been formally registered as per the structures that members approved during the Regional Meetings held on 20th June 2012, and with effect from this Month of February 2013, the Foundation will start admin-istering the said funds. The Foundation will also solicit for more funding in order to meet the priority needs of our members which have been identified by the Members’ Advisory Committee (also known as Foundation committee).

As always we strive to make life beautiful for those who make life sound beautiful!

MeSSAGe FRoMThe CEO’s Desk

Maurice Mwande OkothChief Executive Officer,

Mcsk



habidaMsanii interview

Habida MoloneyStage name: Habida.

Member number: 6046

When did you first make your debut into the Kenyan Music Industry?

I made my debut into the music industry in 2008 with the single, “Sunshine”.

What has changed for you from the time you started out to now?

What has changed for me is the genre of music to a more Afro-centric genre. Also, thestructure of the music industry has improved and grown so the pressure tobe a great musician in Africa is now on!

What inspires your music?

Anything and everything inspires my music. For example the song, “My Reason”came up as I was listening to R-Kay write the music. The words playedin my head and I wrote them down. In the case of the single, “I’m a Dreamer” I was watching the news and saw all the issues that were going on in Africa and the song was born.

You have quickly risen to be one of Kenya’s top royalty earners. What is your secret to this success?

There is no secret to success, hard work and believing in what I amdoing so much that I do everything and take every chance you get is my secret.

When did you join MCSK and how did you hear about them?

I joined MCSK in 2011. I heard about MCSK from some friends. Then one I had a radio interview and said I was asked about my earnings and I had no answer. It is after the interview that Mr. Okoth, the CEO called me and asked me to come in to theoffices and see him. He explained the mandate of MCSK to me and I applied for membership..

How has MCSK been instrumental in the growth of your career?MCSK has offered me and fellow Kenyan artists something we never had before: income from their hard earned sweat. Through the royalties I can now invest in my music comfortably.

Share your life mantra…Growing up as a child my mother never let me cry for too long over something or wallow in pity. Her famous words always echo in my mind, "Kila kitu kina mwanzo na mwisho, haya yataisha pia"- Everything has a beginning and an end, this too shall pass. My mother’s words and prayer get me through whenever I hit a rough patch in life as well as in my music.

What are your hopes for the Kenyan Music Industry?

Unity: I hope that one day musicians, pre-senters, broadcasters and other stakehold-ers will realize that without the success of the other we will not make it. I look forward to the day we shall all be on the same page and grow together.

Some of the Top Earners for the year 2012

share with Msanii on their secret to success and

their hopes for the Kenyan Music Industry.

Moloney


STORYGrowing up as a child my mother never let me cry for too long over something or

wallow in pity.


Msanii interview


Hubert Nakitare

Stage name: Nonini

Member number: 841


I made my debut in 2000 with the song “Nonini ni nani na nini” in which I was basi-cally introducing myself to the music world.

What has changed for you from the time you started out to now?

The quality of music production has mas-sively improved. Before we had more of bed-room studios but now we have professional studios. Of course with that the cost of music production has skyrocketed but it is worth it.


My music is inspired by the people around me, family, fans, fellow musicians, social media and haters.

You have risen to be one of Kenya’s top royalty earners. What is your secret to this success?

If I disclosed it it would no longer be a secret. My secret to success is my well guarded trade secret.

When did you join MCSK and how did you hear about them?

I joined MCSK in 2008,about five years ago when my late friend and fellow musician Poxy Pressure told me about the organization.

How has MCSK been instrumental in the growth of your career?

Through the change introduced in distribu-tion of royalties via the scientific distribution mode, my financial status has improved. I can now see the fruits of my labour.

Share your life mantra…

Good better best. I never let anything rest until my good is better than the best and my best is better than the rest.


My hope is to see that we as musicians can earn a sustainable living from our music and be able to retire comfortably.

nonini


STORYMsanii interview


aliceAlice Kamande

Stage name: Alice Kamande

Member number: 3609


I made my debut in 2009. “Wewe Pekee” was my first single.


My relationship with God and people around me is what mainly inspires my music. I am also inspired by the moti-vation to encourage and give hope to our community.

You have risen to be one of Kenya’s top royalty earners. What is your secret to this success?

It is an honour for me to be where I am today. I love working in excellence and trusting in God for success.

When did you join MCSK and how

did you hear about them?

I joined MCSK in 2009 when my music producer told me about its existence.

How has MCSK been instrumental in the growth of your career?

MCSK has helped me to assess the trends of my music distribution across all broadcasting media as well as the popularity of my music. I am also happy that they have facilitated music earnings through royalty payment.

What keeps you going?

I am encouraged by the support I receive from my friends, family and fans.


I hope to see the industry grow more in terms of content, quality of the music and also an increase in the earnings.

kamande


madtraxxGeorge MuigaiStage name: MadtraxxMember number: 3571

When did you first make your debut into the Kenyan Music Industry?I made my debut in 2007 with my single “Bodaboda.”

What has changed for you since you started your music career?My genre of music and lyrics has evolved to speak to the African audience.

What inspires your music?I am inspired by real life stories, the things I see around me as well as my personal experiences.You have risen to be one of Kenya’s top royalty earners. What is your secret to this success?I have no secret; just hard work.

When did you join MCSK and how did you hear about them?I joined MCSK in 2009. I always knew about MCSK but at first I had doubts about them but not anymore.

How has MCSK been instrumental in the growth of your career?MCSK has helped us to earn a living by pay-ing us royalties.

Share your life mantra…Be real, be yourself.

What are your hopes for the Kenyan Music Industry?I hope to see the industry becoming a real business reaping billions and taking creativ-ity to a whole new level.

Msanii interview


Victor Nzomo, Legal and International Affairs Officer shares the answers to some of the Frequently Asked Questions on MCSK.

The legal desk has been receiving quite a number of questions regarding MCSK and its functions. I have compiled some of the most frequently asked questions with their detailed and very informative answers. Keep the questions coming. We are always pleased to be of service. Talk to us through our various pages on facebook, twitter and our inquiry email address. We look forward to hearing from you.

FAQs - Music Copyright Society of Kenya (MCSK)

Please give us a brief background on the role of Music Copyright Society of Kenya (MCSK) and its operations in Kenya.

MCSK was established in 1983 as a company limited by guarantee under the Laws of Kenya. It exclusively repre-sents and collectively administers the public performance, communication to the public and the broadcasting rights in musical works of over 7,000 copyright owners in Kenya and 96 foreign affiliates worldwide. In addi-tion, by agreement it also administers the mechanical/reproduction right on behalf of many of its members and other international affiliates. MCSK is a non-profit-making organization whose membership consists of Kenyan com-posers, authors and publishers of musi-cal works. MCSK has regional offices countrywide in Nairobi (Moi Avenue), Mombasa, Kisumu, Eldoret, Nakuru, Bungoma, Kakamega, Machakos, Nyeri, Thika, among others.

There have been many accusations that MCSK has not been paying Kenyan artistes royalties. Is this true? As you may be aware, there are three (3) collecting societies licensed to collect and distribute royalties within the music business in Kenya. MCSK is licensed represent the authors, composers and publishers in a particular class of copy-right only and not artistes in general. It is common cause that MCSK’s mandate to distribute royalties only applies to its members who are duly registered with and have accurately declared their works to MCSK where such works have been exploited in or by licensed “users” in a particular accounting period.

In regards to collections, there has been a steady growth in collections over the past few years which has led to sizable royalty payments to MCSK members. These royalties are largely made up of collections from public per-formances. Although MCSK continues to sensitize broadcasters on its mandate and tariffs, significant sections of the broadcast community remain unli-censed or are only now in the process of obtaining a license from MCSK.

In regards to distributions, accurate and up-to-date documentation is crucial in ensuring a fair and equitable divi-sion of Income collected by MCSK. All major music users including broadcast-ers, premium rate service providers are obligated to regularly submit log-sheets to MCSK for computation of royalty pay-ments across the various distribution

classes.

Since distributions rely on information provided by members and users, it is possible for omissions or errors to hap-pen in the normal course of business. MCSK endeavors to ensure that these are kept to a minimum.

What criteria does MCSK use to award royalties and how many times a year does MCSK pay them?

As an interim measure, previously royalty payments were made based on a system of general distribution where MCSK members were paid a flat rate despite the level of exploitation of their works. The internationally accepted scientific method of distribution now in place means that distribution of royal-ties is now based on actual reported usage of music, and, where such exact data on use is not available, then sur-veys and analogies are used and the distribution made is based on available data. In this regard, MCSK members are required to submit their music to the nearest MCSK offices so that the music can be digitized and uploaded for monitoring.

According to MCSK Distribution Rules, there are a number of distribution class-es and royalty distributions made each year. In practice, MCSK gives its mem-bers prior notice of the dates for the various distributions through adverts placed in the major newspapers. In the case of concerts and big events, MCSK distributes royalties within 30 days after the event of concert.

LeGaL DesK

mcskfaqs


Email: [email protected] Twitter: @TheMCSK Facebook: MusicCopyrightSociety Web: www.mcsk.or.ke

Contact Us:-

Under what circumstances can a musi-cian be denied his/her royalties?

As mentioned above, MCSK can only distribute royalties to its registered members in respect of the works declared. Therefore those songwriters and composers in Kenya that are not members of MCSK cannot receive any royalties in respect of their works, unless they apply to join MCSK. Situations may arise where royalty payments cannot be made by MCSK because the musi-cal works have not been accurately declared by the copyright owners who are members of MCSK. There may also be instances where existing members do not communicate their updated banking details to MCSK therefore roy-alty payments made are returned back by the bank.

Recently, the International Federation of Musicians (FIM)

held a conference in Kenya on capacity building for unions representing musicians in Africa. Apparently despite Kenya being the host, Kenya does not have a registered union specifically address-ing the welfare of musicians, what can you say about that?

In 2012, MCSK’s Board of Directors resolved to establish

a Foundation called the MCSK Foundation whose primary objective

is to address the social welfare of MCSK members. The Foundation will receive an allocation from the Social Cultural Provisions of MCSK to be administered to the members. The Foundation is also empowered to solicit alternative sources of funding in order to meet the priority needs of our members which have been identified by the Members.

Briefly explain how MCSK collabo-rates with the Kenya Copyright Board and other Collective Management Organisations in the fight against piracy?

The central focus of the collabora-tive efforts between MCSK and Kenya Copyright Board has been to address the lack of awareness of collective management of copyright in Kenya. Awareness creation and sensitization projects with copyright owners, music users, law enforcement agencies and the general public have started to bear fruit in recent years. MCSK and KECOBO share a common position on the need to discourage infringement of musical works and to act against music piracy through concerted enforcement actions countrywide and prosecutions of copy-right cases in our courts.

MCSK remains committed to working with other collective management orga-nizations in ensuring that copyright own-ers receive their just dues in an efficient and structured manner for the benefit of the music industry.

Any suggestions on the way forward?

The Constitution of Kenya places a posi-tive obligation on KECOBO to promote and protect the intellectual property rights of the people of Kenya, including MCSK’s ever-growing list of members who are copyright owners in respect of musical works.

MCSK and KECOBO continue to make great strides in raising awareness on copyright among rights holders, music users and the general public. Therefore close collaboration and mutual support between MCSK and KECOBO will foster a harmonious environment for efficient collective management of copyright throughout the country.

MCSK is also fully supportive of KECOBO’s efforts to address the rising cases of music piracy and copyright infringement through sustained enforce-ment operations and vigorous criminal prosecutions.


News

startimes, mcsk Partner

TO PROMOTE LOCAL TALENT

…Partnership to see a dedicated 24 hour channel broadcasting local content…

Nairobi 18th June 2013: StarTimes Media and Music Copyright Society of Kenya (MCSK) have partnered in a move that will see

a boost to local talent through the provi-sion of a dedicated 24 hour channel that will air local productions.The dedicated channel named Triple P will be hosted on StarTimes Pay Television platform and will feature music and a host of other Kenyan productions aimed at appreciating well-known as well as emerging talent as production of the same continues to gain prominence but with limited opportunities to air the said content.Speaking during a stakeholder briefing forum between StarTimes, MCSK and Pubs, Entertainment and Restaurants Association of Kenya (PERAK), StarTimes Media Spokesperson Mr. Steven Ambitho noted the firm’s commitment towards accommodating content that will further

spice up the television viewing experi-ence of StarTimes subscribers while publi-cizing the rich Kenyan talent.“Our partnership with MCSK is very strategic, we have come on board to further complement efforts to appreciate and promote the Kenyan talent with a dedicated platform aimed at giving unri-valed prominence to local productions” observed Mr. Ambitho.MCSK intends to initiate the roll out of Triple P through the hospitality industry umbrella body PERAK which will see the channel air at social outlets including pubs, restaurants and eventually in super-markets, barbershops and other public places that were previously required to pay license fees to MCSK in order to play local content, funds from which are later remitted to artists as loyalties. This will then see MCSK sell advertising space on the channel to meet its financial obliga-tions.

MCSK chairman Mr. Maganzo noted the immense benefit that the partnership will present to artists in the country while acknowledging the increased appetite for local content in the country as this will see unlimited airtime to highlight develop-ments and content from local talent.“This presents a great milestone towards the full appreciation of how far we have come as an industry while presenting a platform that will further publicize the hard work that has gone into these local productions. Our partnership with StarTimes will not only provide a broad-cast avenue but more importantly in digital quality thereby ensuring that the content is clearly available across the country”. Said Mr. Maganzo Triple P will be available on all four StarTimes bouquets namely Basic, Classic, Unique and Unique Plus which retail from as low as Ksh. 499 and 2,499 per month.


PicTORial

mcsklaunches triPle P media

Nairobi 22nd March 2013: Music Copyright Society of Kenya launched the Triple P Media channel at a colourful cocktail at Nairobi’s Laico

Regency. The Triple P Media is an alternative licensing regime that MCSK hopes shall boost royalty collection from public performance of music.

Triple P will boost revenue collection through hiring sales agents to sell advertising space on this platform. The content on Triple P Media shall include comedy shows, music, news, clips on tourist sites, SMS competitions among other entertainment items.

The CEO, Mr. Okoth gave a brief presenta-tion at the launch which was attended by MCSK members and various stakeholders in the music and entertainment industry. “ The strategy to be employed will primarily revolve around issues that have been proven to ensure Radio and Television stations are most attractive to listeners and viewers.” Said he. He further added that the key for Triple P will be its unique manner of presentation so that it is always “a fun channel to watch” whilst at the same time being informative and packaged in bite size for consumption on the go.


PicTORial


toP 50 earners

breakfast meeting at

The attendees were taken through how their royalties are computed. Star Times and Indo-Africa Finance also made presentations at the meeting.

Chester House


MCSK shall be holding its 2nd MCSK Gala Awards on July 20th

at the Laico Regency. The event is an invite only but it shall be aired on Triple P Media on StarTimes and live streaming by Homeboyz Radio. Stay tuned to watch who shall be the win-

ners this year!

mcsk gala aWards2013


mcsk gala aWards


amka kenya children for Peace camPaign

MCSK led by the marketing department took to Kibera a celebration of peace and brotherhood. MCSK promotes peace.


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