FEDHASA Approaches the High Court for Declaratory Relief Regarding SAMRO In-Room Television Licensing Fees

The Federated Hospitality Association of South Africa (FEDHASA), the recognised national trade association for the hospitality industry, has approached the High Court of South Africa for Declaratory Relief to determine the legality and scope of the in-room television licensing fees imposed by the South African Music Rights Organisation NPC (SAMRO).

SAMRO is a registered non-profit company tasked with administering music rights, including broadcasting and public performance rights, on behalf of its members – composers, authors, and publishers of musical works. Through written deeds of assignment entered into with its members, SAMRO is assigned the relevant rights in musical works and is granted the exclusive right to administer, control, license, enforce, and commercialise these works in accordance with applicable intellectual property laws.

For over three decades, members of the hospitality industry have complied with SAMRO’s licensing regime, paying annual fees for the use of music in common use and public areas, such as restaurants, bars, foyers, conference facilities, and outdoor entertainment spaces, including poolside areas. In 2022/2023, SAMRO introduced an additional licensing fee applicable to the same hospitality establishments, specifically for music accessed via television sets in individual guest rooms. This newly introduced fee is charged on a per-room, per-TV basis, over and above the existing common area music license fees.

In seeking to address this matter on behalf of its members and the broader hospitality sector, FEDHASA engaged with SAMRO to explore a resolution. Despite discussions, the parties were unable to reach a mutually acceptable position on this issue.  FEDHASA has accordingly approached the High Court for Declaratory Relief to obtain judicial clarity on the legality and scope of these additional licensing fees, and to confirm the respective rights and obligations of accommodation providers and SAMRO under the relevant statutory and contractual framework.

 FEDHASA acknowledges the vital role of SAMRO in supporting South African music creators and remains committed to upholding the legal and ethical use of music within the hospitality sector. It is FEDHASA’s hope that the outcome of this court process will provide certainty to both the hospitality industry and SAMRO, and that it will strengthen the ongoing working relationship between the two organisations in a manner that is fair, transparent, and sustainable for all stakeholders.

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