We continue to act as solicitors to Tinny Entertainment (TE or our Client) on whose instructions we herewith respond to your letter dated 07 November 2017, which was a response to our letter of 27 October 2017.
Our Client restates, maintains and adopts all its claims as set out in our letter of 27 October 2017,which in sum is, that your organisation have failed and continues to fail to fulfil its contractual obligations constituting breaches of material obligations under the License Agreement which came into effect on 4 October 2016, between Sony Music Entertainment Africa (Pty) Limited, SM Entertainment West Africa Limited, Sony Music Entertainment East Africa Limited (hereinafter collectively referred to as SONY), and our Client (the Agreement).
Notably, SONY continues to fail in its obligations in relation to Marketing in South Africa in breach of Clause 8 of the Agreement, its obligations in relation to Marketing in Territories outside South Africa contrary to Clauses 10.1 and 1.4.15 of the Agreement and its obligations in respect of Procurement of Live Performances and Payment of Consideration contrary to Clause 8.3 of the Agreement.
We maintain our position in relation to our other heads of claims and respond to your specific statements as follows:
Procurement of Live Performances and Payment of Consideration
This form of marketing is a viable and effective tool in respect of which, SONY has obligations to initiate or facilitate the process. SONY has failed and continues to fail in this regard.
Statements of Account and Payment of Royalties
The statements rendered to date are incomplete. In addition, SONY has not exhibited the level of transparency and accountability provided for and expected under this Agreement.
Marketing in South Africa and Territories outside South Africa
It is our Client’s position that SONY’s efforts and financial advancements do not compensate or cure the losses suffered by TE from lack of earnings of royalties on account of SONY’s failure to effectively market and promote its releases in various parts of the world. The advancement provided by SONY was reimbursement for our Client’s finances expended in promoting and marketing “Link Up” in Nigeria. It is also our Client’s position that it has not prevented SONY from carrying out its obligations neither has it breached the Agreement by independent uploads of its releases.