CMOs in Tanzania: A Legal Framework in Need of Reform

By TARO (Tanzania Artists Rights Organization)

Artists in Tanzania are the heartbeat of our nation's cultural identity. Yet, behind the music, the films, and the literary works that enrich our society, a quiet crisis is unfolding , one that threatens the very livelihood of those who create.

At the center of this crisis are Collective Management Organizations (CMOs) , the entities responsible for ensuring that artists are fairly compensated when their works are used. But as TARO's latest legal analysis reveals, Tanzania's current legislative framework governing CMOs is deeply flawed, leaving artists vulnerable to exploitation, mismanagement, and systemic injustice.

What Are CMOs?

A Collective Management Organization (CMO) is a non-profit entity that acts as an intermediary between rights holders (artists, composers, performers, publishers) and users of copyrighted works (broadcasters, event organizers, streaming platforms). Their core purpose is simple: collect royalties and distribute them to the creators who earned them.

In theory, CMOs are the backbone of a thriving creative economy. In practice, however, Tanzania's CMO legislation is fraught with weaknesses that undermine this mission.

The Good News: Progress Has Been Made

It is important to acknowledge that Tanzania has taken steps forward. The transition from COSOTA (the Copyright Office of Tanzania) as a state-controlled CMO to a new legislative framework under the Finance Act No. 5 of 2022 represents a significant evolution. This reform aimed to enhance governance, accountability, and efficiency in collective management operations.

However, implementation remains inconsistent, and the current law introduces new problems that require urgent attention.

The Weaknesses: A System Open to Abuse

TARO's legal analysis identifies several critical flaws in the current legal framework. These are not minor technicalities—they are systemic issues that directly harm artists.

1. Overly Broad Powers Granted to CMOs

The law grants CMOs a blanket mandate to act as agents for "all rights protected by copyright." This effectively gives a CMO the power of a music label, allowing it to license, publish, distribute, and commercially exploit an artist's work without their specific, prior consent.

Imagine an artist waking up to find their song has been signed to a digital distribution deal they never approved. This is not a hypothetical, it is a real risk under the current law.

2. Opaque and Anti-Competitive Licensing

The law prohibits multiple CMOs for one creative field but fails to define the criteria for these fields or establish a transparent licensing process. This creates a monopoly system that stifles innovation, breeds corruption, and leaves artists with no alternative if their CMO performs poorly.

3. Inappropriate Corporate Structure

CMOs are mandated to register under the Companies Act of 2002, which classifies them as for-profit entities. This fundamentally perverts their non-profit nature. Initial founders could structure ownership to personally profit from royalty income, while creators are left with diminished returns.

4. Immunizing the Regulator from Accountability

The law grants blanket immunity to COSOTA officials for actions done in "good faith," shielding them from legal action for potential misuse of office or negligence. This removes a critical layer of accountability and encourages impunity.

5. A Flawed Dispute Resolution Mechanism

If an artist has a complaint against their CMO, they must appeal to COSOTA, the very body that oversees and licenses that CMO. This is a clear conflict of interest that denies artists a fair and impartial hearing for their grievances.

6. Failure to Tackle Modern Piracy

The copyright levy system focuses on obsolete blank media like CDs while excluding modern devices like phones, computers, and hard drives. Artists are not being compensated for the most common forms of copying and piracy today.

The Impact on Artists

The consequences of these legislative failures are tangible and devastating:

• Loss of Control: Artists lose control over their creative works, with CMOs making decisions without consultation.

• Exploitation: Royalties are misused for profit-making ventures, reducing what reaches the creators.

• Lack of Trust: Many creators lack confidence in existing CMOs, leading to reduced participation and compliance.

• No Fair Recourse: Artists have no independent body to turn to when disputes arise.

• Discouraged Creativity: The lack of a fair, transparent system discourages artistic expression and stifles the growth of Tanzania's creative industry.

What Needs to Change?

TARO recommends a series of legislative and regulatory amendments to strengthen Tanzania's collective management ecosystem:

✅ Allow Multiple CMOs

Amend the law to allow registration of multiple independent CMOs based on specific sectors (music, film, literary works) to encourage competition and specialization.

✅ Mandate Transparency

Require CMOs to publish annual external audits, distribution rules, and tariff schemes. Ensure boards are elected by and accountable to the rights holders they represent.

✅ Modernize for the Digital Economy

Update the law to address digital distribution, streaming platforms, and online licensing. Mandate the use of modern technology for accurate royalty tracking and distribution.

✅ Establish an Independent Tribunal

Create a specialized, low-cost Copyright Tribunal to handle disputes between CMOs, users, and rights holders—free from the conflict of interest that plagues the current system.

✅ Protect Artists' Economic Rights

Entrench core principles of artists' economic rights within the main body of the Copyright Act itself, where they cannot be changed by ministerial decree without robust parliamentary debate.

✅ Strengthen Enforcement

Introduce stronger legal measures for royalty collection, compliance monitoring, and infringement penalties. Establish specialized copyright units within courts and law enforcement agencies.

The Time for Reform Is Now

Tanzania's creative industry has immense potential. Our artists are world-class, our cultural heritage is rich, and our stories deserve to be told, and fairly compensated.

But potential alone is not enough. Without a fair, transparent, and accountable legal framework, artists will continue to be exploited, and the creative economy will remain stunted.

The recommendations outlined above are not merely administrative improvements—they are legal imperatives to instill integrity, efficiency, and trust in the system. By strengthening the regulatory framework, embracing the digital age, and placing artists at the center of the conversation, Tanzania can build a CMO system that truly serves its creators.

About TARO

Tanzania Artists Rights Organization (TARO) is a non-governmental organization championing artistic freedom and the rights of artists in Tanzania. We advocate for the rights and interests of artists and their works through advocacy, awareness campaigns, research, monitoring, and reporting.

This legal analysis is part of the SANAA RIGHTS PROGRAM, a project aimed at enhancing the policy and legislative landscape for Tanzania's arts scene, implemented with support from Culture and Development East Africa (CDEA) and funding from the Norwegian Embassy in Tanzania.

Want to learn more or get involved? Reach out to TARO and join the movement for a fairer creative industry in Tanzania.

📌 Key Takeaway: A creative industry thrives only when its creators are protected. Tanzania's CMO framework must be reformed, not just for the benefit of artists, but for the cultural and economic prosperity of the nation.

This blog post is based on the legal position paper "The Ambiguity of Collective Management Organizations (CMOs) Legislative Framework in Tanzania," published by TARO.

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Ambiguity of the Collective Management Organizations (CMOs) Legislative Framework in Tanza.

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