In a landmark decision on September 16, 2024, the Jamaican courts dismissed an application by the Jamaica Association of Composers, Authors, and Publishers (JACAP) for specific disclosure against Horizon Entertainment & Communication Company Limited. This ruling marks the latest development in a long-standing copyright dispute in which JACAP initially obtained a default judgment against Horizon Entertainment. The case involved JACAP’s claim for unpaid licensing fees for the use of copyrighted musical works, but the ruling found that the absence of a valid tribunal-approved licensing scheme undermined JACAP’s ability to pursue the claim.

JACAP is responsible for licensing and collecting royalties on behalf of composers, authors, and publishers of musical works in Jamaica. Its mandate is to ensure the rights of its members are protected, and that proper compensation is provided for the use of copyrighted works.

JACAP originally brought the case against Horizon Entertainment after the latter allegedly used copyrighted musical works without a valid licence. JACAP obtained a default judgment against Horizon Entertainment for copyright infringement, which entitled them to proceed to an assessment of damages. However, JACAP’s application for specific disclosure of Horizon’s audited financial statements, intended to support their claim for damages, was challenged by Horizon Entertainment.

In opposing the application a preliminary point was raised that JACAP had no legal basis to demand specific disclosure or collect licensing fees because no rate had been fixed by the Copyright Tribunal, as required under the Copyright Act.

Key aspects of the ruling:

• Absence of a tribunal-approved licensing scheme: The court ruled that JACAP had not fulfilled the statutory requirement of having a tribunal-approved licensing scheme that clearly defines rates and terms for the use of copyrighted works. Without this, JACAP lacked the legal standing to demand financial disclosure or pursue damages.

• Default judgment insufficient without specific licensing terms: While JACAP had secured a default judgment against Horizon Entertainment, the court determined that this alone was insufficient to proceed to an assessment of damages without the proper licensing framework in place.

• Non-jurisdictional enforcement of fees: Horizon successfully argued that without the involvement of the Copyright Tribunal to set an equitable rate for the use of musical works, JACAP could not enforce the collection of licensing fees or seek damages through the court.

Implications for JACAP and the creative industry:

The ruling has far-reaching implications for JACAP and other licensing bodies operating in Jamaica. Without a properly constituted and tribunal-approved licensing scheme, JACAP is not only prevented from collecting fees but also faces potential challenges to fees that may have already been collected. The court emphasised the need for transparency and compliance with statutory requirements, setting a clear precedent for how licensing bodies must operate under the Copyright Act.

This ruling also underscores the importance of following due process when seeking damages for copyright infringement. Licensing bodies, like JACAP, must ensure that they have a valid, pre-approved scheme in place before pursuing entities for financial compensation.

This decision is not only a victory for my client, Horizon, but also for the rule of law in Jamaica. It sends a strong message to business operators that Jamaica’s judicial system is grounded in predictability and certainty. For businesses to invest and thrive there must be confidence that the courts will fairly and consistently enforce the law. This ruling highlights the integrity of Jamaica’s legal framework, ensuring that companies can operate in a stable environment where laws are applied transparently and predictably.

While this may be seen as a setback for JACAP, which can be attributed to their own failure to meet the legal requirements, it is undoubtedly a win for Jamaica. This ruling showcases the strength of our judicial system and the importance of adhering to the rule of law. It reinforces that once there is a law the court will uphold it. This is crucial for both local and international businesses that rely on a fair and consistent legal environment in which to operate.

Next steps for JACAP:

JACAP must now review its licensing practices and ensure compliance with the Copyright Act. It is expected that JACAP will need to halt further collection of fees until a valid licensing scheme is in place or risk facing additional legal challenges. The organisation may also face claims for refunds of fees collected without a proper legal basis.