Music Royalty Society Nepal Sends 34,000 Notices for Unpaid Royalties
Kathmandu. Music Royalty Society Nepal has sent 34,000 letters at once targeting 56 types of stakeholder associations and organizations across the country that have not paid royalties.
The society has sent these letters urging them to pay the royalties that should be paid according to the rules for using music creations quickly. According to Sapana Gharti Magar, the society's legal officer, letters have been sent as a final warning to organizations that have been neglecting to pay royalties despite repeated verbal and written requests.
Intellectual property is protected by Section 3 of the Copyright Act, 2059 BS. According to Section 25 (A) of the same Act, it is illegal to use intellectual property without permission. Legal officer Gharti Magar informed that letters have been sent urging royalty payment based on the same legal provision.
"This time, 34,000 letters have been sent at once as a final notice. Those who ignore the letters will be reminded and informed twice via phone," said legal officer Gharti Magar. "If they do not contact us within 3 months after being reminded, a complaint will be filed with the police and the process of action will be initiated."
Gharti Magar stated that cases related to copyright are criminal in nature and fall under Schedule-1 of the Muluki Criminal Procedure Code, 2074 BS. Therefore, once a case is registered, the police will arrest the public user and keep them in custody, and the case will only be resolved by the court. Hence, it is requested that this matter be taken with utmost seriousness.
Which sectors have received letters?
The 56 types of sectors for which the society has sent letters include media to service-oriented business establishments. These include radio, television, FM radio, internet service provider organizations, five-star deluxe hotels, star hotels, heritage and boutique hotels, other hotels and lodges, resorts, and homestays.
Similarly, letters have also been sent to casinos, coffee shops, cafes, restaurants, lounges and bars, discos, clubs, dohori evenings, public transportation, tourist vehicles, airports, and airline companies. Furthermore, the society has urged digital media, movie halls, fun parks, parks, picnic spots, schools, colleges, vehicle workshops, car showrooms, big marts, gyms, spas, beauty parlors, and sports stadiums to pay royalties.
200 organizations paid royalties
So far, more than 200 associations and organizations have joined the Music Royalty Society and are paying royalties. These associations and organizations, including radio, television, FM radio, and hotels, joined the royalty system based on the letters sent by the society for royalty payment.
Recently, due to strict legal action against organizations not paying royalties, more than 100 associations and organizations have joined the royalty system this year alone. "Previously, there were about 100 organizations affiliated with royalties," said legal officer Gharti Magar. "More than 100 new organizations have joined the royalty system in the current fiscal year alone."
Why are 'green' and 'red' stickers distributed?
To systematize and make transparent the commercial use of songs and music and to collect royalties, Music and Royalty Society Nepal has implemented a 'green' and 'red' sticker distribution system. This system has been implemented for easy identification of organizations that pay royalties and those that do not use music.
According to the society, more than 200 business organizations have received 'green stickers' by paying royalties so far. This sticker is affixed to public and commercial establishments that have obtained permission to play music by paying royalties according to the rules.
On the other hand, a 'red sticker' has been arranged for organizations that have committed not to use music for their commercial purposes. Gharti Magar stated that organizations that pledge not to use music are provided with this sticker as a 'no music zone'.
So far, red stickers have been affixed to more than 100 business firms across the country. Those who have received red stickers mainly include homestays, tattoo houses, small guesthouses, beauty parlors, and some media outlets that do not use music commercially. She mentioned that action will be taken if music is found to be used during the monitoring of organizations affixing red stickers.
What is royalty?
The law states that royalty must be paid for the use of someone's intellectual property. Songs and music are intellectual property. Using songs and music (intellectual property) without paying royalties is a legal offense. The Copyright Act, 2059 BS, also provides for penalties for this.
Music Royalty Collection Society Nepal is the only organization authorized by the Nepal government for royalties. This society was established by the government through special provisions under the special provisions of the United Nations.
It collects royalties for music used worldwide in Nepal. Music Royalty Collection Society Nepal is established under Section 39 of the Copyright Act, 2059 BS.
The current chairman of the society is musician Suresh Adhikari.
What is the penalty for not paying royalties?
If royalties are not paid, there is a legal provision in the Copyright Act, 2059 BS. According to the offense specified in this Act, there will be a fine of ten thousand rupees to one hundred thousand rupees or imprisonment for up to six months or both. For the second time onwards, there will be a fine of twenty thousand rupees to two hundred thousand rupees or imprisonment for up to one year or both penalties for each instance. In case of misuse, there is a legal provision for confiscation of materials and compensation for damages.
It is mentioned that the compensation will be as claimed by the creator, so the compensation can be any amount.
This specific news has been automatically translated by AI. As a result, there may be some inaccuracies or language errors.
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