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The Copyright Society of Malawi (COSOMA) has revealed that it still relies on data from licensed CD and DVD burning centres to distribute Blank Media Levy (BML) royalties, despite the rapid growth of digital music platforms such as YouTube and streaming services.
The disclosure came during a meeting with Akometsi Ltd and Madness Entertainment, where COSOMA explained that the current royalty distribution system was approved by members and does not use digital consumption data.
According to COSOMA, of the approximately K3 billion collected through the BML this year, K1.8 billion is allocated to rights holders. After a 20% withholding tax deduction, about K1.44 billion remains for distribution to artists, producers, publishers, record labels and other rights holders.
The society also clarified that a 20% deduction labelled as an “Administration Fee” on royalty statements was a system error and is actually withholding tax, promising to correct the mistake in future statements.
However, Akometsi Ltd and Madness Entertainment argued that the current system no longer reflects today’s digital music industry. The companies also called for an automated tax reconciliation process with the Malawi Revenue Authority (MRA) to prevent delays and possible double taxation.
The two companies have since engaged a legal team to prepare formal recommendations aimed at modernising the royalty distribution system while safeguarding the interests of Malawi’s creative industry.
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