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There are also other international companies that produce food like fried chicken from
USA.The KFC whose franchise company by the same name also operates in Tanzania.

Activity 6.1
Imagine Kamachumu is an aspiring songwriter who has just composed a hit song. As
a result of his success, he has been offered a royalty agreement with a music label.
FOR ONLINE READING ONLY
Required:
(a) Enhance understanding of royalties and their significance in the entertainment
industry, visit the Copyright Society of Tanzania (COSOTA) office or explore
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its website at www.cosota.go.tz
(b) During exploration, focus on the following key areas:
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(i) Explore the concept of royalties and why they are significant in the
entertainment industry.
(ii) Discuss the factors that influence royalty rates and agreements, including
contractual terms, market demand, and artistic contribution.
(iii) Discuss the benefits and challenges of royalty arrangements for both content
creators and rights holders.
(iv) Share your insights on how royalties shape the dynamics of the music and
entertainment business.
(c) After completing exploration, compile your findings and insights into a
comprehensive report on royalty agreements. This report should reflect your
understanding and critical analysis of the topic. Share it with your friends or in
the class to receive comments and further improvement of your work.

Difference between royalty and rent
Royalty and rent are usually used interchangeably, although there is a difference between
the two. The following are the major differences between royalty and rent:

S/N Royalty Rent

It is paid for the use of special right for both It is paid for the use of tangible
1
tangible and intangible assets. assets only.
Royalty is paid either based on units pro- Rent is paid based on period on
2
duced or quantity sold. the agreement.
Royalty fee varies with the change in units Rent is fixed over the period
3
produced or quantity sold. agreed.
Lessee must pay a minimum rent and might The concept of a minimum
4 be allowed to recoup short workings in year rent is not applicable and hence
of favourable production or sale. there is no recoupment.

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