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Telcos Still Dodging Royalty Payments to Ghana's Musicians, Four Years After Court Ruling

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Telcos Still Dodging Royalty Payments to Ghana's Musicians, Four Years After Court Ruling

The CRBT Boom and the Payment Crisis

Caller Ring Back Tones transformed Ghana's telecom landscape in the mid-2000s, replacing monotonous ringing with highlife classics, gospel, and Afrobeats hits. MTN's 'CallerTunez' and similar services became a cultural staple, generating significant profits for telecom giants while boosting visibility for Ghanaian musicians. Yet beneath this apparent win-win lay a fundamental problem: unfair revenue distribution and missing payments.

When telecoms monetise a song as a caller tune, they trigger two royalty obligations: Master Royalties to artists and labels, and Mechanical Royalties to songwriters, composers, and publishers. In Ghana's model, telcos pocket roughly 70 percent of revenue, leaving artists with around 12 percent after all deductions. Worse, songwriters and composers have received nothing since CRBTs became widespread in 2012—an entire class of rights holders erased from the revenue chain.

Court Victory, but No Real Change

The Ghana Music Rights Organisation (GHAMRO) began campaigning for compliance in 2012. After nearly a decade of legal battles, an Accra High Court ruled on 10 March 2021 that MTN, Vodafone, and AirtelTigo must pay appropriate royalties, awarding GHAMRO GHS 60,000 in legal costs. Four years on, that ruling remains largely unenforced. Payments remain inconsistent or absent, raising questions about regulatory enforcement and corporate priorities.

The double standard is striking: these same companies comply with royalty structures in other countries but treat Ghana differently—suggesting non-compliance is viewed as a manageable risk rather than a legal obligation.

Impact on Ghana's Music Industry

Denying mechanical royalties to songwriters and composers discourages composition as a sustainable career, weakening the foundation of Ghana's music industry. While telcos sponsor events and partner with artists—visible gestures of support—these do not replace fair payment for core business practices. Until compliance becomes non-negotiable, the structural inequity will persist.

Source: The Ghana Report

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