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Understanding music royalties (Part 1): A hidden asset in Namibia’s creative economy

by editor
February 19, 2025
in Opinions
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By Leake Ileka

In Namibia, the concept of music royalties is often misunderstood or overlooked.

Many artists see royalties as sporadic bonuses rather than structured revenue streams, and the users and public rarely consider them as economic drivers.

However, royalties are not just payments for past work; they are valuable, transferable assets, and they are capable of sustaining an artist’s career and estate for generations.

According to our current law, the duration of economic rights, including royalties, in copyright law is 50 years from the date the work is created or recorded, or 50 years after the creator’s death.”

At its core, a royalty is a payment made to a rights holder in exchange for the use of their intellectual property or resources. In the context of music, royalties refer specifically to payments made to copyright holders, such as composers, lyricists, and performers, for the use and commercial exploitation of their works.

This includes royalties from radio play, streaming services, and public performances, as well as royalties from album sales, digital downloads, and licensing deals.

Historically, royalties have played a crucial role in the development of global music industries. In more developed markets, music royalties serve as financial instruments used as collateral for loans, traded as investment assets, and inherited like real estate.

In Namibia, however, the full economic potential of royalties remains untapped. Despite the country’s rich cultural heritage and creative potential, there is a noticeable lack of awareness and appreciation for the value of IP rights.

This undervaluation leads to inadequate protection and commercialisation of creative works, resulting in missed economic opportunities.

Why Royalties Matter to the Economy

From an economic perspective, royalties are not just personal income streams; they contribute to national GDP, job creation, and cultural preservation.

When structured properly, music royalties create an ecosystem where musicians, producers, and investors continuously earn from intellectual property, fuelling new projects and industry growth.

Royalties attract investments, stimulate innovation, and contribute significantly to national economies.

For example, each time a Namibian song is played internationally, royalties are supposed to flow back to the rights holders. This is how artists from countries with strong IP frameworks sustain long-term careers.

In contrast, many Namibian artists either do not register their works correctly or fail to collect their due royalties, leaving revenue on the table.

Moreover, the impact of royalties extends beyond the artist. Producers, composers, and rights holders all benefit when copyright is well-managed. For a country like Namibia, with a growing creative sector, understanding and enforcing royalty structures could open doors for export revenue, international collaborations, and economic diversification.

The Role of NASCAM and Collective Management

In Namibia, the Namibia Society of Composers and Authors of Music (NASCAM) is the only recognised collective management organisation responsible for collecting and distributing royalties. NASCAM plays a crucial role in ensuring that artists receive payments from broadcasters, venues, and streaming services.

However, challenges persist, from inaccurate or incomplete information provided by members to gaps in data accuracy.

One of the key issues is that many artists do not understand the role of NASCAM or fail to register properly. This leads to discrepancies where only a fraction of musicians benefit from royalties, while others remain unaware of their potential earnings.

By statutorily strengthening NASCAM’s capacity, improving information distribution, and integrating modern digital payment systems such as MTC Maris could significantly enhance royalty collection and distribution.

These issues highlight the need for legislative reforms to empower NASCAM with greater authority and resources, ensuring timely and fair compensation for creators. By strengthening intellectual property protection and management, Namibia can unlock the economic potential of its creative industries, fostering innovation, attracting investment, and contributing to sustainable economic growth.

The latest copyright bill must seize this opportunity by enhancing the role of NASCAM within the creative industry. Statutory measures are crucial for improving Namibia’s creative sector and its broader economy. Therefore, the proposed copyright bill should not only address existing shortcomings but also position IP as a key driver of national development.

Royalties as Inherited Wealth

One of the most underrated aspects of royalties in Namibia is their role in estate management. Music copyrights do not expire within an artist’s lifetime; they extend for decades beyond, meaning family members can inherit royalties. In countries with advanced IP structures, artists’ estates continue to generate revenue long after their passing, providing financial security for their descendants.

However, poor royalty management often prevents this in Namibia. Without clear documentation, proper licensing, and legal guidance, many artists’ earnings are lost or misallocated upon their death.

Encouraging musicians to see their copyright as a revenue-generating asset, one that requires active management and legal structuring could change the financial future of Namibian creatives.

This issue is far too important to be overlooked. In a forthcoming article, I will explore in greater depth how Namibian artists can secure their royalties for future generations, including legal tools, best practices, and case studies.

Conclusion: A Call for Revolution

If Namibia’s music industry is to thrive, there must be a shift in how we view royalties. Artists must take ownership of their IP, registering and monitoring their earnings more proactively. Policymakers and industry stakeholders need to strengthen copyright enforcement, ensuring that royalties flow efficiently to their rightful owners.

More importantly, local music fans, investors, and business leaders must begin to see music not just as entertainment but as an economic sector with tangible value. By treating royalties as strategic assets, we can transform Namibia’s creative industry into a sustainable source of income, cultural preservation, and long-term wealth.

Copyright is not just a legal right—it is a financial tool, an entrepreneurial asset, and a legacy. The sooner we recognise its value, the stronger our music industry will become.

*Leake Ileka is a Legal Compliance Officer at Altus ICT and a Chevening Alumnus.

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