A Structural Analysis of Royalty Distribution Systems in South African Collective Management Organisations

A Structural Analysis of Royalty Distribution Systems in South African Collective Management Organisations

Abstract

This study examines how the structural and operational characteristics of South African collective management organisations (CMOs) shape royalty allocation patterns, transparency levels, and the accumulation and management of undistributed ("black-box") royalties. Focusing on South Africa's three principal music CMOs—SAMRO, CAPASSO, and SAMPRA—the study adopts a qualitative case study design combining documentary analysis, semi-structured interviews, and direct observation of member-facing digital systems. The findings demonstrate that the effectiveness of royalty distribution is shaped by the interaction between governance arrangements and operational processes. While South Africa has established relatively sophisticated collective rights management institutions, opportunities remain to strengthen stakeholder participation, improve data capture and interoperability, and enhance transparency and accountability across the royalty distribution system. The study concludes that many challenges affecting royalty distribution arise not from the absence of governance structures or reporting mechanisms, but from limitations in how effectively these systems support participation, information exchange, and accountability. It contributes to the limited body of South African scholarship on collective rights management and offers recommendations for improving the effectiveness, transparency, and accountability of royalty administration.

Publication Date

7-1-2026

Campus

Valencia (Spain) Campus

Keywords

collective management organisations (CMOs); royalty distribution; undistributed royalties; South Africa; music rights management

A Structural Analysis of Royalty Distribution Systems in South African Collective Management Organisations

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