A team consisting of members from the Uganda National Musicians Forum and the National Culture Forum has appealed to the Ugandan Parliament for assistance in obtaining a fair portion of the tax revenue generated from caller ring back tunes (CBRTs). They argue that the Uganda Communications Commission (UCC), which serves as the regulator for the telecom industry, has not adequately addressed their concerns.
The joint team made this appeal during their appearance before the Committee on Information, Communication, Technology, and National Guidance on October 5, 2023.
The artists express their dissatisfaction with the fact that telecommunications companies are earning a substantial 35 percent of the revenue generated by caller ring back tones, while they receive only a meager 1.8 percent. Charles Batambuze, the Vice-Chairperson of the National Cultural Forum, pointed out, “Currently, telecoms earn a gross revenue of up to Shs72 billion annually, which is 35 percent, leaving the musician with a paltry 1.8 percent. Yet, the musician is obligated to pay income tax of 30 percent on this income.”
Furthermore, they are calling on Parliament to compel media houses to pay for the use of their music, highlighting that only five percent of broadcasters are currently honoring their royalty payments. Charles Batambuze stated, “We wonder why UCC does not invoke the copyright law, which requires media houses to pay for using artists’ work. We have held several meetings with them, signed memoranda of understanding with broadcasters, but compliance is still a challenge.”
Geoffrey Ekongot, the Executive Director of the musicians association, informed the committee that they have attempted to engage with UCC, Uganda Revenue Authority, and the Attorney General’s chambers but have not received adequate support. He said, “We have tried to engage UCC and other government agencies, but we have not been helped. For instance, we asked the commission that the renewal of licenses for media houses should be based on compliance by paying fees, but it has not been effected.”
Ekongot also noted that efforts to sue broadcasters and telecom companies for unfair compensation and non-compliance have been hindered by protracted court processes. He explained, “What is common with most of these cases is that they take a very long time. The recent one of Konshens Vs Airtel Uganda took eight years. There are few artists who can sustain such a long court battle. The telecoms, with their deep pockets, finance the court process deliberately to wear you out until you run out of money.”
In response to these concerns, Hon. Tonny Ayoo, the Committee’s Deputy Chairperson, assured the artists that the committee would engage with UCC and other relevant agencies. He emphasized the importance of establishing mechanisms for artists to track their due revenue, as is the case with international artists. He stated, “It is possible to track how much money you earn from the way your music is being utilized; it is possible with YouTube, iTunes, and so these telecoms should provide us with that data.”
Additionally, Hon. Kazibwe Bashir (NUP, Kawempe Division South) encouraged the team to devise a broadcast monitoring mechanism that would allow them to track the frequency on which an individual artist’s music is played. This, he argued, would further support their claims against broadcasters. He said, “I am one of those who support the idea that media houses should pay money to musicians, but we have a lacuna; Is there a broadcast monitoring mechanism? It is possible that broadcasters are paying big musicians and cheating the upcoming ones? You need a system that tells you how many times a song has been played in a day and on which station, whether in Kampala, Katakwi, or Kisoro.”