MPs Call for Stronger Royalty System to Protect Creatives

Rwandan lawmakers are advocating for a more robust royalty system to safeguard the rights of creatives and ensure equitable compensation for their work. This call comes amidst the recent enactment of Law No. 055/2024 on the Protection of Intellectual Property, which, despite modernizing the IP landscape, has revealed significant gaps in its implementation, particularly concerning royalty collection and distribution. Concerns have been raised about specific provisions, such as Article 301, which allows for the non-profit use of copyrighted works by government, educational, and religious institutions without consent or remuneration. The parliamentary committee's report underscores the critical need for effective collective management organizations and stronger regulatory frameworks to foster the growth and economic contribution of Rwanda's creative industry.

Rwanda's burgeoning creative industry, a vital component of the nation's vision for a knowledge-based economy, is at a critical juncture. Lawmakers have recently voiced a compelling call for the establishment of stronger systems to protect creators' rights and guarantee they receive fair compensation for their intellectual property. This parliamentary intervention, stemming from a report by the Committee on Education, Technology, Culture, Sports and Youth, highlights that the sustained growth and economic contribution of the creative sector are inextricably linked to the effective management of intellectual property and royalties.

The impetus for this legislative advocacy arises despite recent efforts to modernize Rwanda's intellectual property framework. The enactment of Law No. 055/2024 on the Protection of Intellectual Property, which came into force on July 31, 2024, was intended to overhaul the previous 2009 legislation and align Rwanda with international standards. However, the parliamentary committee's findings suggest that while legal reforms are in place, their practical implementation remains weak, leaving many creators without the income generated by their work. This article will delve into the current legal landscape governing intellectual property and royalties in Rwanda, analyze the identified shortcomings, and explore the implications for legal practitioners and the creative community.

The legal foundation for intellectual property protection in Rwanda has undergone significant evolution. Historically, various laws governed different aspects of IP, including the Law of 25 February 1963 for patents, trademarks, and industrial designs, and the Law of 15 November 1983 for copyright. These were largely consolidated and updated by Law No. 31/2009 of 26/10/2009 on the Protection of Intellectual Property, which provided a comprehensive framework for authors of literary, artistic, and scientific works, performers, and phonogram producers, among others.

In a significant development, Law No. 31/2009 was repealed and replaced by the more expansive Law No. 055/2024 on the Protection of Intellectual Property, effective July 31, 2024. This new legislation aims to further strengthen protections and streamline procedures for various IP rights, including copyrights. Copyright protection under the new law generally extends for the life of the author plus 50 years, covering original literary, artistic, scientific works, performances, phonograms, wireless broadcasting, and computer programs. A key mechanism for royalty collection and distribution in Rwanda is the collective management organization (CMO). The Rwanda Society of Authors (RSAU), established in May 2010, serves as the country's first such organization, mandated to manage rights on behalf of creators.

Despite the progressive intent behind Law No. 055/2024, its implementation has quickly drawn scrutiny from lawmakers and the creative community. The Parliamentary Committee on Education, Technology, Culture, Sports and Youth identified “significant gaps” in the management of intellectual property rights and the distribution of royalties, emphasizing that creators require stronger representation through effective collective management organizations. This echoes earlier concerns about the efficiency of CMOs in Rwanda, with one study noting that the 2009 IP law presented loopholes that needed correction through a new law with more provisions relating to the administration and monitoring of CMOs.

A particularly contentious provision in the new law is Article 301, which permits the public performance of a work without the author's consent and without payment of royalties under specific conditions. These conditions include performances during official or religious ceremonies, educational or public awareness activities by the government or non-profit organizations, and teaching activities within educational institutions, provided the performance is not for profit. This article has sparked considerable debate, with key figures in the creative industry arguing that it poses a significant threat to artists' already modest gains and undermines their ability to earn a living from their work. The Minister of Youth and Arts has acknowledged these concerns and announced plans to collaborate with relevant authorities to review and improve Article 301.

The challenges extend beyond specific legislative provisions to the practical efficacy of royalty collection and distribution. The Rwanda Society of Authors (RSAU) reported that only Rwf55 million was generated and distributed between 2019 and 2022, a figure that underscores the difficulties in ensuring fair compensation for artists. This low collection rate highlights systemic issues, including potentially weak enforcement mechanisms, a lack of awareness among users of copyrighted works, and possibly insufficient capacity within CMOs to effectively monitor and license the use of creative works. The government, through MINICOM, MoYA, and RDB, is actively engaging artists to discuss a draft Ministerial Order regulating CMOs, indicating a recognition of the need for a more structured and transparent system.

Comparative analysis with other jurisdictions often reveals that robust IP systems rely on a combination of clear legal frameworks, strong enforcement, and efficient collective management. While Rwanda has made strides in its legislative framework, the current parliamentary and industry concerns suggest that the operational aspects of royalty management require urgent attention. The call for stronger regulation of the creative industry to improve coordination among stakeholders and protect cultural works from counterfeiting and misuse further points to a need for a holistic approach that integrates legal, administrative, and technological solutions.

The recent call by Rwandan lawmakers for a stronger royalty system is a critical development for the nation's creative industry. While the enactment of Law No. 055/2024 on the Protection of Intellectual Property represents a significant legislative update, its effectiveness in ensuring fair compensation for creators is being questioned, particularly in light of provisions like Article 301 and the persistent challenges in royalty collection and distribution. The parliamentary committee's recommendations for effective collective management organizations and enhanced regulatory oversight are crucial steps towards realizing the economic potential of Rwanda's creative sector.

For legal practitioners, this evolving landscape presents both challenges and opportunities. Advising creatives will increasingly involve navigating the nuances of the new IP Law, advocating for fair terms, and potentially engaging in discussions surrounding the proposed amendments to contentious articles. Practitioners must stay abreast of the forthcoming Ministerial Order regulating CMOs and any subsequent legislative or policy changes. The emphasis on strengthening the creative economy also signals a growing need for legal expertise in areas such as licensing, enforcement, and international IP protection, as Rwanda seeks to safeguard its cultural products in global markets. The ongoing dialogue between government, artists, and legal stakeholders will be pivotal in shaping a royalty system that truly empowers Rwandan creatives.