The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Bahamas’ Copyright Licensing Fund does not have enough monies to fully compensate intellectual property rights holders who have made “quite significant”multi-million dollar claims against it, Tribune Business was told yesterday.

And, with these same international royalties owners starting to complain and push their case in Washington, Obie Pindling, chairman of the Bahamas’ Copyright Tribunal, told this newspaper that it was attempting to resolve the problems surrounding the Fund on “an urgent basis”.

Pledging that he personally would “try to ensure that in 2013, much of these issues are dealt with”, Mr Pindling and his fellow Tribunal members have effectively ‘picked up’ where their predecessors under the former Ingraham administration left off.

Kirkwood Seymour, who previously chaired the Tribunal, told Tribune Business earlier this year that it was still trying to obtain a completed audit of the Fund to determine how much money had been paid into it, and compare this sum to what was expected to have been received.

In addition, Mr Seymour said the Tribunal was also seeking to develop a methodology/structure that would regulate how monies were paid out from the Fund, which was set up to compensate rights holders for use of their work in the Bahamas. It would also determine how payments to rights holders were calculated.

Mr Seymour told this newspaper at the time that not one cent had been paid out to copyright claimants since inception. It is this ongoing situation, and the inability to claim against/access these funds, that is angering royalty rights holders and the organisations that represent them.

Mr Pindling confirmed to Tribune Business yesterday that an audit of the Copyright Licensing Fund still had to be completed, and acknowledged that the Tribunal was trying to deal with “a few pressing matters”.

He confirmed that there were “two major claimants” against the Fund currently, and disclosed to this newspaper that if these were 100 per cent paid out, nothing would be left to compensate multiple smaller copyright owners.

Mr Pindling said the two largest claimants’ demands were “very easily” worth several million dollars, and he indicated the Fund did not even have enough funds to settle these.

Acknowledging that it was “a major task” to educate the Bahamian people and corporate community on intellectual property rights, given that the issue was largely still “alien” to this country, Mr Pindling said the Tribunal and government authorities had not “turned a blind eye” to the issues surrounding the Fund.

Estimates as to how much money has been paid into the Fund vary, figures supplied by various sources to Tribune Business ranging from $3 million to $5-$6 million.

Mr Pindling said yesterday: “The audit [of the Fund] has not yet been completed. Suffice it to say I spoke to the auditors a few weeks ago, and they’ve run into a few roadblocks. They’ve not been able to get all the information they’ve been seeking.”

The current auditors are the Baker Tilly Gomez accounting firm, and Mr Pindling added in reference to the claims against the Fund and its payment issues: “There are still a few pressing, outstanding matters that we’re trying to take care of on an urgent basis.

“Action has been taken to resolve them very quickly. I’m trying to resolve this as best I can.... We have a number of major claimants, but we can’t fund them to 100 per cent, as there will not be enough left for other claimants.

“We have two major claimants at the moment, and obviously there are others, and we have to develop a plan and strategy as to how we pay all the claims.”

Mr Pindling described the two largest compensation claims as “quite significant” and “very easily” running into several million dollars each.

While unable to confirm that the Fund had paid out nothing to royalties holders since its inception more than a decade ago, Mr Pindling indicated he was aware of complaints about the situation.

He also confirmed he was working on a system for determining awards from the Fund, and how this was paid out, adding that he had “made certain recommendations to some of the authorities” that the Government was now considering.

Mr Pindling said no formal proposals had been made to Fund claimants yet, as the Government and Tribunal wanted to first develop it between themselves.

Acknowledging that it was “extremely important” to resolve the problems surrounding the Fund, Mr Pindling told Tribune Business: “The whole use of intellectual property is something that has been a major issue in the country in various forms over the last several years, in terms of local as well as international copyright.

“Much has to be done to sensitise the public on issues of copyright and intellectual property... It’s going to be a major task.

“By the same token it’s something I take very seriously, as I wear the hat of a musician and entertainer, so I’m peculiarly aware of the importance of having situations like this resolved.

“The authorities have not turned a blind eye to it. A number of meetings and communications have been held, [involving] the Tribunal and government agencies.”

And Mr Pindling added: “I will try to ensure that in 2013 much of these issues are dealt with.

“These issues are still alien to us as a country and people, but we live in a big world, and have to do what we have to do to comply, not only the Tribunal but those who use intellectual property in their businesses - from the biggest to the smallest.”