Fonotica
Prohibited From Charging Music Royalties In
Costa Rica
The Tribunal Registral Administrativo has
ruled that local radio and television
stations do not have to pay royalties to the
Asociación Costarricense de la Industria
Fonográfica y afines (Fonotica) to play
music over the airwaves.
The Tribunal has prohibited Fonotica to
charge any royalty fees to radio and
television stations, or any person or entity
to play music for commercial purposes.
During the past several months, radio
stations undertook an intensive campaign
against Fonotica, telling their audience
that the royaty fees demanded by Fonotica
would affect their radio listening pleasure,
and including to playing music at a private
party or public function.
In one commercial, parents are distraught
over not having enough money to play music
at their daughter's wedding, as their budge
did not include the royalties demenaded from
the record companies, even though they had
legally purchased the music.
Experts in intellectual property rights say
that Fonotica and other associations must
first obtain authorization from the Registro
Nacional de Derechos de Autor y Derechos
Conexos.
In particular case of Fonotica, the
association says it did have such
authorization. However, the Tribunal
concluded that it did not comply fully with
procedures to collect royalties.
Fonotica represents the recording labels
SONY, Universal, EMI, Warned, Dideca and DDM
Distribuidora de Música SA.
The complaint against Fonotica was filed in
a joint action by Repretel, Televisora de
Costa Rica (Teletica), Ament and Sky.
Fernando Contreras, representing Repretel,
said that now Fonotica has to, without a
doubt, prove that if the true legal
representatives of the labels.
Hugo Rodríguez, lawyer for Fonotica, said
they would appeal the court decision.
The basis of the appeal is that the same
court in 2007 said that Fonotica was the
legal representatives of the labels and now
denies such.
Hugo Rodríguez, lawyer for Fonotica, said
the court decision would be appealed.
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