Music streaming giant Mdundo revealed in its 2022/23 financial report that a copyright infringement claim of 31.5 million Kenyan shillings had been filed against the company during that fiscal year. No details about the claimant or song were disclosed, but the denomination in local currency indicated that the plaintiff originated from within Kenya.
However, Mdundo remained optimistic about the outcome, suggesting that a legal review found it highly probable the court would rule in their favor. The platform had over 140,000 artist accounts registered, with 86,000 or 61.4% being Kenyan creators.
The demand specifically cited alleged damages totaling 1,539,175 Danish krone – equivalent to the aforementioned 31.5 million shillings as of last June. But Mdundo believes strong arguments support acquitting them of wrongdoing.
This comes as the company’s streak of losses continued into fiscal 2023, with net deficits growing 5.4% year-over-year. Revenues increased nearly 75% to 264.15 million shillings, although currency weaknesses in key markets like Kenya and Nigeria hampered overall performance.
Specifically, audited results showed a expanded loss of 10.21 million krone for the period, compared to 9.68 million krone previously. The listed company primarily serves the Nordic market but maintains strong African user bases that are feeling economic pressures.
In unrelated news, a High Court ruling awarded hip hop artist Simon “Bamboo” Kimani damages of 4.5 million shillings from telco Safaricom last month. This settled a nearly nine-year suit accusing the mobile network of exploiting his songs as callback ringtones without authorization. Kimani had sought redress since 2015 over rights infringement and loss of royalties.
