A legal showdown is brewing in Ghana, pitting the Ghana Hotel Association (GHA) against the Ghana Music Rights Organisation (GHAMRO) and the Audiovisual Rights Society of Ghana (ARSOG). At the heart of the dispute are copyright royalty payments, specifically how they are assessed for hotels across the country. The GHA, representing the interests of its members, argues that the current system is unfair, leading them to seek legal intervention. According to Dr. Edward Ackah-Nyamike Jnr., President of the GHA, the association contends that royalty assessments should be tied to actual usage of copyrighted material, not arbitrarily based on the number of rooms a hotel has or its star rating. This approach, they say, runs counter to established copyright laws. The outcome of this lawsuit could significantly reshape how Ghana hotels compensate copyright holders.

The legal battle underscores a fundamental disagreement on how copyright royalties should be calculated within the hospitality sector. The Ghana Hotel Association has formally filed suit, challenging the methods employed by GHAMRO and ARSOG. Dr. Edward Ackah-Nyamike Jnr. emphasized that the decision to pursue legal action stemmed from a consensus reached at the National Executive Committee meeting, with 34 resolutions from its membership supporting the move. This refutes claims that the lawsuit is driven by narrow, parochial interests. The GHA’s core argument rests on the principle that royalty assessments should reflect actual usage, aligning with Section 37 of the Copyright Act, 2006 (Act 690) as amended by Copyright act 2009 (Act 788) and regulations 36 and 37 of L.I 1962.

The Ghana Hotel Association objects to what it describes as the arbitrary imposition of royalties by GHAMRO and ARSOG. Hotels are particularly dissatisfied with the unilateral manner in which these royalty assessments are calculated. The GHA asserts that these organizations have not been transparent in explaining the basis for their calculations. Attempts to engage GHAMRO, the Ghana Tourism Authority, and the Parliamentary Select Committee on Trade, Industry, and Tourism to gain clarity on the assessment criteria have been largely unsuccessful, according to the GHA. The association further argues that GHAMRO’s actions violate the fundamental principles underlying copyright royalties, which should be based on demonstrable usage and public performance of copyrighted works. The GHA also contends that ARSOG is similarly imposing levies without due regard for the provisions of the Copyright Act. The hotels want a system that is fair and takes into account their actual use of the materials.

The Ghana Hotel Association is seeking several key forms of relief from the court. Primarily, the GHA wants a declaration affirming that copyright royalties should be determined by actual usage or public performance, rather than being tied to the number of rooms a hotel possesses or its assigned star rating. In addition to this declaratory judgment, the GHA is seeking a restraining order to prevent GHAMRO and ARSOG from continuing to assess royalties based on these metrics. The association also seeks the recovery of its legal costs associated with pursuing the lawsuit. Dr. Ackah-Nyamike Jnr. stated that the lawsuit is instituted on behalf of its members.

While the specific details of GHAMRO and ARSOG’s counter-arguments are not explicitly detailed in the provided material, it can be inferred that they likely believe their assessment methods are both justified and lawful. It’s reasonable to assume that they rely on their own interpretations of the Copyright Act and established industry practices to support their royalty demands. They might argue that factors like the number of rooms or hotel ratings serve as reasonable proxies for the potential usage of copyrighted material within those establishments. However, the GHA president has openly disagreed with claims made by GHAMRO that the lawsuit is for their parochial interest.

The outcome of this legal battle has the potential to significantly impact how copyright royalties are assessed within Ghana’s hospitality sector. The court’s decision will provide crucial clarification on the interpretation of Section 37 of the Copyright Act, which governs copyright issues. Changes in royalty assessment methods could directly affect the operating costs and overall profitability of hotels across the country. Furthermore, the lawsuit underscores the need for clearer communication and fairer practices between hotels and copyright organizations, regardless of the outcome. This will have a ripple effect on the Ghana hotels.

The lawsuit between the Ghana Hotel Association and GHAMRO/ARSOG represents a pivotal moment that could reshape copyright royalty assessments in Ghana’s hospitality industry. The central question revolves around whether royalties should be based on actual usage of copyrighted material or on indirect factors like hotel room counts. The court’s decision will have far-reaching consequences for hotels, copyright organizations, and the interpretation of copyright law in Ghana. All stakeholders will be closely watching the proceedings, keen to understand how this legal battle will ultimately impact the future of royalty payments within the industry. This case highlights the ongoing importance of fair and transparent practices in the assessment and collection of copyright royalties. The Ghana hotels are hoping for a resolution that will benefit all.