Licensing Manual Guide

Licensing Manual Guide

1. CATEGORIES OF PAYMENT MODES;

(i) Corporate rates – this rate shall apply to Companies, SACCOs, Associations and any organised group which shall be making payments for Ten (10) or more Licenses at a go. Corporate clients attracts a 10% discount on the published tariff only for payments made when they fall due;

(ii) Office payments – this rate shall apply to Licensee(s) making payments for less than Ten (10) licenses in the respective payment offices of MCSK and or alternative payment points as shall be advised from time to time by the Head Office on payments made when they fall due; and

(iii) Express (VIP) – this rate shall apply to those Licensees who MCSK Officials issue to licenses at the comfort of their business premises. These Licensee(s) shall pay an administrative charge of 50% above the applicable published tariff.

2. INSTALMENT PAYMENTS

Instalment payment of license fees shall be on a case to case basis as shall be directed from the Head Office, subject to:-

(i) A written formal request/application to pay the license fee by instalments;

(ii) A payment plan, with clear distinct timelines/duration of meeting payment obligations;

(iii) Payments to be made directly to the respective Regions office, or any other alternative paying point that shall be provided or advised with time;

(iv) A monthly administration fee equal to 10% of the license fee to be imposed for every instalment month that shall be approved by the Head Office.

(v) Any breach of the terms of the instalment payment shall render it void and any payments made shall be forfeited and considered to have covered that period for which payments were made;

(vi) A public performance license shall only be issued upon completion of the final payment.

3. CONSUMER PRICE INDEX (INFLATION)

All Public Performance License Fees Shall Increase / Go Up by a Percent (2013=11%) to factor in changes in the Consumer Price Index (CPI) for the period between 1st October of the previous year and 30th September of the current year. These increments shall apply for the licenses due for renewal beginning 1st January and to any new licensees for the duration of the license year.

4. The working figure shall increase by the stated percent and the calculated (Payable) license fees shall be rounded off to the nearest FIFTY (50) Shillings;

5. INCENTIVES

5.1 Payments made up to Nine (9) days before the due (as per invoice) date shall be entitled to get a Ten Percent (10%) discount;

5.2 Payments made up to Eight (8) days after the due (as per invoice) date shall pay only the actual license fee as per the invoice, as long as the payment is made at the nearest MCSK office of through any alternative mode of payment that shall be provided;
5.3 Payments made after the Eighth (8th) day of the due date (as per the invoice) but within the month of the due date shall attract a penalty of Ten Percent (10%) as long as the payment is made at the nearest MCSK office of through any alternative mode of payment that shall be provided;
5.4 Payments made a month after the due date (as per the invoice) shall attract a penalty of Fifty Percent (50%) as long as the payment is made at the nearest MCSK office of through any alternative mode of payment that shall be provided;

6. REPORTING FORMAT
6.1 Monthly licensing reports from the Regional Managers (by the 3rd day of the month):-
6.1.1 A comprehensive list of;-
a) Licensees for the period falling due;
b) Invoices prepared and delivered;
c) Licensees for that specific month;
d) Licensees inspected during that month;

6.1.2 A comprehensive licensing list shall entail:-
a) Name of owner of premises/vehicle;
b) Name of premises/vehicle registration number;
c) Location (County; town/urban centre) of premises/vehicle;
d) Date of expiry of license and its value;
e) Date of issuance of license (+number) and amounts received (+number);
f) Music usage report (Radio-TV Station/Live Performances/Concerts/DJ/Recorded);
g) Issuing Officer.

7. Region's set revenue collection targets versus the actual, plus number of Licensees (arrived at and presented as a sum total of all the collections of Colleagues in the Region) ;

8. Region's projected licensing operations expenditure versus the actual expenditure (arrived at and presented as a sum total of all the expenditure of Colleagues in the Region) ;

9. Evaluation of overall performance of the Region.

10. MONTHLY INSPECTION REPORTS FROM THE REGIONAL MANAGERS

10.1 The Regional Manager shall submit a detailed inspection report as follows;
10.1.1 Name of County;
10.1.2 Officer in charge of the County;
10.1.3 Database of the County;
10.1.4 Towns/Urban Centres in the County covered during the inspection;
10.1.5 A comprehensive list of Licensees visited during the inspection;

10.2 A comprehensive inspection list shall entail:-
a) Name of owner of premises/vehicle;
b) Name of premises/vehicle registration number;
c) Location (County; town/urban centre) of premises/vehicle;
d) Date of expiry of license and its value;
e) Date of issuance of license (+number) and amounts received (+number);
f) Music usage report (Radio-TV Station/Live Performances/Concerts/DJ/Recorded);
g) Level of understanding of the role of MCSK (Collection & Distribution), its mandate/authority from Members and Sister Societies, scope of MCSK Controlled repertoire and obligations under The Copyright Act 2001, by the Licensee inspected, gauged as percentage (%);
h) Feedback from the licensees visited;
i) Recommendations.

11. DAILY LICENSING REPORTS FROM THE REGIONAL MANAGERS

11.1 Prior to and after the licensing activities for THAT DAY:-

11.2 Awareness;-
11.2.1 Route map;
11.2.2 Feedback of awareness exercise with a comprehensive list.

11.3 Invoicing ; –
11.3.1 Preparation (Accounts Dept.) of invoices – a comprehensive list of licensees and invoice numbers;
11.3.2 Delivery of invoices – a comprehensive list of licensees, due date on invoices, amounts due on invoices and mode of delivery;
11.3.3 Feedback of invoicing activities with a comprehensive list.

11.4 Follow ups;-
11.4.1 A comprehensive list of Licensees and mode of making follow up;
11.4.2 Penalty invoice with reminder letter;
11.4.3 Demand Letter for invoiced amounts (license fee + Penalty);
11.4.4 Notice of infringement;
11.4.5 Feedback on Follow up activities with a comprehensive list.

11.5 Licensing/Police Operations;-
11.5.1 A comprehensive list of infringing individuals/corporate, detailing; -
a) Name of owner of premises/vehicle;
b) Name of premises/vehicle registration No.;
c) Location and contacts of infringer;
d) Date of awareness/expiry of license;
e) Date of filling out of application form and assessment;
f) Date of invoicing + Value of license;
g) Administration fee + penalty per invoice;
h) Dates and modes of follow ups;
i) Music in MCSK controlled repertoire that has been infringed and the dates of infringement;
j) Occurrence Book (OB) No. and Police Station (OCS/OCPD details + Contacts);

11.5.2 Feedback of operation activities, with a comprehensive list including the full IDs of the Police Officers in the operation.

12. Update of the data bank/base.

13. Hard copy of the days licensing activities (Report) to be filed in each Colleagues file.

14. MCSK LICENSING PROCEDURES
14.1 AWARENESS /SURVEY/MARKETING/PUBLIC RELATION:
This is the first stage of the licensing procedure. MCSK Staff/Officers visit a User(s) premises and Public/Commercial vehicle, so as to inform/educate/sensitize/explain to them directly or by issuing to them a MCSK brochure that contains all that information.

14.1.1 During this stage MCSK Staff/Officers are there to create a rapport/relation with the User(s) for purposes of bringing them to light and understanding the essence of taking out MCSK's Public Performance License when playing Copyrighted musical works that are within MCSK Local and International Repertoire;

14.1.2 The brochures highlights history of MCSK, its mandate and the relevant Sections of The Copyright Act 2001, Laws of Kenya, on rights of a copyright owner, definition of Public Performance, infringement of Copyright, Criminality of the offence of infringement, punishment and Collective Administration of Copyright. Any aspect of the brochure that is not clear in English and Swahili then the User is advised to contact seek clarification from MCSK offices or the Staff/Officer who they are dealing at the moment;

14.1.3 MCSK Staff/Officer should at this stage once he/she has introduced her/himself bear in mind the while seeking data the various use to which the information they get may be used at a later date for any of the following;-

a) Reminder on renewal of License;
b) MCSK newsletter;
c) New products MCSK has to offer;
d) General information on MCSK;
e) PR between Users and MCSK members;
f) Foundation could source for funds from Users;
g) Prosecutions in cases of defaulting Users {info extracted from broadcast monitoring services};
h) Scientific Distribution of Royalties collected.

14.1.4 Once the User has understood/been made to understand and appreciate MCSK, Copyright and Copyright Laws, then MCSK Staff/Officer should assess the premises/Vehicle so as to establish the Public Performance License value;

14.1.5 In premises that there is public performance of musical works in MCSK repertoire an application for a license form is filled by the Owner/Manager {although it is mostly done by MCSK Staff/officers} indicating the name and contacts of the Owner, location of the premises, nature of establishment/business, seat capacity/floor space of the premises, type/category of music usage, applicable tariff, amount payable per annum;

14.1.6 Premises that do not have music are also visited so as to establish their value and why they do not have music. This is for future follow ups and making of recommendations to the Management and the Governing Council on the best way forward to be able to increase the User coverage by MCSK.

14.2 INVOICING
14.2.1 In the Licensing Procedures once a premises/vehicle has been assessed then it is supposed to be issued with an invoice, this is mandatory, irrespective of the amount, MCSK minimum amount licensable is KShs. 2,925/=. There is no valid reason why invoices should not be issued to new and already licensed premises and Public Service/Commercial Vehicles.

a) New premises and Public Service/Commercial vehicles are issued with invoices and given an agreed upon time frame to pay and acquire an MCSK Public Performance License, so as to legalize and regularize their exploitation of copyrighted Musical works in MCSK repertoire;

b) Premises and Public Service/Commercial Vehicles with current PP licenses are to be issued with invoices at least one (1) month prior to expiry so that they can enjoy the 10% discount that has been approved by the Governing Council;

c) Licensed Premises and Public Service/Commercial Vehicles whose PP license has expired and have not yet been invoiced are issued with an invoice to pay within Three (3) days from the date of service of the invoice.

14.3 DEMAND NOTICE/NOTICE OF INFRINGEMENT
14.3.1 Upon lapsing of the deadline on the invoice for making payment and acquiring a PP license from MCSK, a Demand Notice/ Notice of Infringement is issued;-

a) The Demand Notice/Notice of Infringement is for Seven (7) days only;

b) The Demand Notice/Notice of Infringement is very specific to the consequences of failure to pay, criminal charges shall be preferred for infringement of copyrighted musical works by performing in public without MCSK PP license;

c) In the alternative without prejudice to the option of instituting criminal charges the User who has failed to pay and opts to pay on the day of operation the invoiced amount shall attract 100% surcharge;

d) Service of the Demand Notice may be done through registered post, courier, dropped off by a messenger or MCSK Staff/officer;

14.4 Last stage of the Licensing Procedure is after lapse of the Seven (7) days on the Demand Notice, a list is prepared of all those premises and Public Service/Commercial Vehicles that have failed to comply so as to launch a formal criminal complaint of infringement in the Occurrence Book (O.B.) of the nearest police station against the Users in the compiled list.

14.4.1 Documentation collected during the Licensing procedure shall form a strong basis under which the Prosecution may extract warrants of arrest.

14.4.2 The last stage shall be heavily reliant on the very good working relationship between MCSK, the Police and the KeCoBo Prosecutors;

14.4.3 All the hard copy material used to gather the data shall be filed away in each and every licensing Staff/Officers personal file. A soft of the same shall be prepared for purposes of modern storage and also for ease of sharing the same with the Head Office.

14.5 Strict adherence to the Licensing Procedure and ensuring that documentation is retained for all the steps taken, from;
14.5.1 Data collection of the premises/vehicles;

14.5.2 Issuance of brochures;

14.5.3 Filling of license application form;

14.5.4 Service/delivery of the invoice;

14.5.5 Issuance/service of a Demand Notice/Notice of Infringement;

14.5.6 Launching of a formal complaint at the nearest police station; and

14.5.7 Extracting of warrants of arrest against the Users at fault {shall definitely eliminate allegations of harassment, intimidation, ambushing levelled against MCSK Staff/Officers by faulting Users}.

14.6 It also stipulates clear action timelines with which MCSK Staff/Officers can make follow ups, have organized and formal/professional methodology of relating with Users.

14.7 Data collected is essential to Head Office Management, Documentation and Distribution Department, Regional Managers, Field Staff/Officers and also can be shared with stakeholders we work with for them to monitor the progress we are making in our working relationship to ensure compliance to and enforcing the provisions of The Copyright Act 2001, Laws of Kenya.

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