The High Court sitting in Nairobi has barred the Kenya Copyright Board (KECOBO) from releasing funds collected under the Blank Tape Levy.
Blank Tape Levy is a new tax that was introduced by the Kenyan government on Monday, September 11.
The levy is imposed on the sale of blank media and devices such as CDs, DVDs, USB drives, and smartphones. The amount of the levy varies depending on the type of media or device.
The order was issued on Wednesday, September 13, following a petition filed by individuals who claimed that they were acting in the interest of music producers and performers.
The petitioners argued that the Blank Tape Levy is unconstitutional and that the funds collected should not be released to the Performers Rights Society of Kenya (PRSK), Music Copyright Society of Kenya (MCSK), and Kenya Association of Music Producers (KAMP).
Petitioners claimed that the levy violates their right to fair remuneration and that the money should be used to support the development of the music industry in Kenya.
The court directed KECOBO not to deposit the funds collected under the Blank Tape Levy into an interest-bearing account pending the hearing and determination of the petition.
Speaking to Kenyans.co.ke, on Friday, August 25, Sports Cabinet Secretary Ababu Namwamba noted that Blank Tape Tax will be levied on all digital and electronic devices with the ability to record or produce internet content.
Ababu noted that the Blank Tape Levy will be used to compensate copyright holders for the private copying of their works. However, the petitioners argue that the levy is unfair and will only benefit a small number of copyright holders.
Purposefully, Blank Tape Tax will be used to enhance digital content creation in the country. The Cabinet Secretary argued that the Blank Tape Tax is necessary to protect the rights of copyright holders and content creators in the country.
"The Blank Tape Levy will be very significant and will make the collection of royalties go up ten-fold. This tax will be levied on any gadget that has recording capability.
"It will be imposed on any device including this camera which you are using or a mobile phone that is imported into the country from other countries," Ababu explained.
The case is still pending in court, so it is not yet clear whether the Blank Tape Levy will be upheld. However, the court's decision is likely to have a significant impact on the music industry in Kenya.
