General

Ghana Hotel Association Files Lawsuit Against GHAMRO and ARSOG Over Royalties

Accra: The Ghana Hotel Association (GHA) has initiated legal action against the Ghana Music Rights Organisation (GHAMRO) and the Audiovisual Rights Society Of Ghana (ARSOG) over the imposition of royalties. Dr. Edward Ackah-Nyamike Jnr., President of GHA and a witness in the case, testified in court that the lawsuit was the result of a decision made during a National Executive Committee meeting, backed by 34 resolutions from its members. He refuted claims from the defendants that the court case was driven by parochial interests.

According to Ghana News Agency, the GHA seeks a court declaration affirming that under section 37 of the Copyright Act, 2006 (Act 690) as amended by the Copyright Act 2009 (Act 788) and regulations 36 and 37 of L.I 1962, royalties should be based on usage and public performance rather than the number of rooms or the grade of hotels. The GHA also requested an order to prevent the defendants from assessing and collecting royalties based on hotel ratings or room numbers.

The legal action is grounded in the GHA's mandate from its members, who expressed dissatisfaction with the unilaterally imposed royalties and license fees. The GHA engaged with the defendants to understand the calculations and basis for the imposed fees, involving the Ghana Tourism Authority and the Parliamentary Select Committee on Trade, Industry, and Tourism in the discussions.

The GHA argues that GHAMRO's actions contravene the principles by which copyright royalties are assessed. The organization contends that royalties should be derived from usage and public performance of copyrighted material, not hotel ratings. Similarly, ARSOG's imposition of fees without adherence to legal provisions is seen as a breach of the Copyright Act.

Members of the GHA have resisted these impositions, leading to threats of legal action from the defendants. The GHA asserts that ARSOG has already taken legal steps against some members and issued demand notices for royalties without a lawful assessment process. The GHA maintains that these actions violate the Copyright Act and the fundamental principles of royalty assessment, emphasizing that the defendants' conduct is inconsistent with both legislative and constitutional provisions in Ghana.