South African Ringtone Seller Sued Over Royalty Payments

South African mobile content reseller, Exactmobile has denied claims that it is not paying royalties on the ringtones it sells. The National Organisation for Reproduction Rights in Music in Southern Africa (NORM) filed the allegations, although Exactmobile says that it has a legal agreement in place with the royalties body.

NORM issued a legal summons against Exactmobile last month and Exactmobile has now filed notice in the High Court of its intention to defend itself against the claims.

"Norm has asked for an order in terms of which Exactmobile must cease infringing the copyright of Norm's members and pay a royalty of 7.5 percent which it regards as reasonable, backdated to January 1 2006," NORM said in a statement.

The royalty body is also seeking damages of R2 million from the ringtone vendor.

Exactmobile, for its part says that it has been in negotiations with NORM over the amount to pay and has not been able to finalise an agreement. They deny that a 7.5% royalty rate is reasonable and has been trying for a 5 percent royalty rate. The company says that it has put the royalty payment into a trust account pending a decision from the court.

Posted to the site on 4th September 2008