SHORT-CHANGED: Jazz pianist Hotep Galeta sued Sarral. Picture by Watson Mcoteli

In a judgement that is going to change the music landscape forever, the South Gauteng High Court granted an application to liquidate the South African Recording Rights Association Limited (Sarral).

Sarral has been the custodian of mechanical music rights for artists for almost half a century.

Last Friday was the culmination of a six-year battle between the organisation and Colin Shapiro, Hotep Galeta – both composers who claim to be owed millions in unpaid royalties – and others.

Judge Phillip Boruchowitz ruled that Sarral had breached its duty of trust and misappropriated members’ royalties, that Sarral’s revenues were insufficient to met its royalty liability to its members and therefore trading as an insolvent entity.

Mechanical royalties accrue from “sound-to-picture”, such as movies, DVDs, advertising and other promotional material.

Speaking exclusively to Sunday World ahead of the landmark judgment, Galeta says he suspects he’s owed more than R4m.

“I wrote music for Morning Live and should’ve been paid R500000 a year but only R300000 was put into my account,” he says.

“The rest of the money, I was told, was withheld because I was litigating Sarral and they made a unilateral decision to hold that money as surety in case I lost.”

Galeta says no court had made a costs order against him so Sarral held his money illegally.

The plaintiff’s lawyer, Owen Blumberg says Sarral has indicated their intent to file leave to appeal.

“But as things stand, the court will appoint a liquidator and Sarral will be wound up,” says Blumberg.

He stresses that though the judge used the term “misappropriation”, “the real tragedy is that Sarral revenues have shrunk so it will not be able to meet it’s obligations ”.

Sarral manager Tebogo Singo was unavailable for comment.

* masungwinin@sundayworld.co.za

* mzwandile@sundayworld.co.za