Deal sheet
- Status
- Completed
- Type
- Publishing
- Parties
- Sony Music Publishing, Gallo Music Publishers
- Amount
- Not disclosed. No fee, commission rate, administration percentage, advance, minimum guarantee or equity was stated by either party in the announcement of 24 March 2021, and no figure has appeared in any corroborating source checked for this record.
- Rights covered
- Publishing rights, meaning musical compositions rather than master recordings. Sony Music Publishing is appointed to provide administration services over the Gallo Music Publishers catalogue: collecting, distributing and expediting royalty payments; synchronisation services, described in the announcement as creating placement opportunities and licensing the music for film, television and commercials; and overseas promotion of Gallo published songwriters. No copyright is transferred by the announcement, which states no assignment, sale or purchase of any composition. It also makes no positive statement about where title in any individual composition sits, so this record asserts nothing about underlying ownership. Master recording rights in the Gallo recorded music catalogue are not covered and are governed by separate agreements with different counterparties.
- Territory
- Worldwide, excluding Africa. The primary announcement reads: to a worldwide agreement, excluding Africa. Two independent trade reports carry the same carve-out. Arrangements for the administration of the catalogue inside Africa are not stated in any document checked.
- Announced
- 2021-03-24
- Primary document
- Official newsroom
- Sources
- Sony Music Publishing announcement, New York, 24 March 2021: Today, Sony Music Publishing (SMP) South Africa announced the signing of Gallo Music Publishers (GMP) to a worldwide agreement, excluding Africa. · Trade report, 24 March 2021, carrying the worldwide agreement, excluding Africa wording and the named executive quotes · Trade report, March 2021, carrying the same quotes and the Africa carve-out · Trade report by Butchie Seroto, 25 March 2021, rendering the territory as a worldwide agreement, which excludes Africa · Republication of the announcement on Gallo Music Publishers' own website · Republication of the same release, March 2021, which carries the executive quotes but no exclusion language anywhere in the piece
Read this before citing: This is an administration and services agreement over compositions. It is not an acquisition. No party used the words acquire, purchase, buy, assign or sale, no consideration of any kind was described, and no transfer of copyright appears anywhere in the announcement. The release also makes no positive statement that ownership remains where it was, so this record asserts nothing about who holds title to any individual composition. It does not cover master recordings, and it does not cover the distribution of Gallo Record Company releases. Financial terms were not disclosed and remain undisclosed: no fee, commission rate, advance, minimum guarantee or equity. The term, any renewal or termination mechanism, and whether the appointment is exclusive are not disclosed, and it could not be established whether the agreement remains in force in 2026. No schedule of works, count of compositions or share position was published; the artist list in the announcement closes with the phrase to name a few. Territory should be read with care: the primary announcement and two independent trade reports state the agreement is worldwide excluding Africa, while one republication of the same release headlines it as a global deal and carries no exclusion language at all. Do not confuse this agreement with a separate publishing services partnership announced in May 2020 between the same group's South African affiliate and a different South African company, which covered that company's own roster of composers and not this catalogue. South Africa's Companies and Intellectual Property Commission publishes no open API, so the Gallo publishing entities have not been checked against the South African register.
Sony Music Publishing announced on 24 March 2021 that it had signed Gallo Music Publishers to a worldwide publishing agreement that excludes Africa. No copyright was bought or sold. No master recording was involved. What changed is who administers, licenses and collects on the Gallo Music Publishers song catalogue outside the African continent. No financial terms were disclosed, and none has been disclosed since in any document checked.
What the announcement says
The announcement carries a New York dateline of 24 March 2021 and is issued in Sony Music Publishing’s own name. Its opening sentence is the operative one: “Today, Sony Music Publishing (“SMP”) South Africa announced the signing of Gallo Music Publishers (“GMP”) to a worldwide agreement, excluding Africa.”
The services are itemised. Sony Music Publishing will provide “world-class administration services, helping to collect, distribute, and expedite royalty payments across the world; as well as synchronization services, creating placement opportunities for GMP’s songs as well as licensing its music for film, television and commercials.” Gallo published songwriters will also have their songs “promoted overseas”.
Three executives are quoted by name. Guy Henderson, President, International, Sony Music Publishing, says that “with its tremendous roster of writers, the history of Gallo is the history of South African music”, and that, having started his own career at Gallo, he is “thrilled to be reunited with celebrated works from the likes of Lucky Dube, Ladysmith Black Mambazo, Stimela, Sipho Mabuse, Caiphus Semenya and so many others”. Rowlin Naicker, Managing Director of Sony Music Publishing South Africa, calls the catalogue “synonymous to South Africa’s musical heritage”.
The Gallo side supplies the most precise sentence in the document. Rob Cowling, General Manager of Gallo Music Group, says: “We feel our vast catalogue and administration of this rich African heritage of songs outside of Africa’s borders is in good hands with Sony Music Publishing.” He describes the counterparty’s role as “managing GMP’s works and driving revenues for our composers, and their beneficiaries”.
What this deal does not cover
It is not an acquisition. The verbs used across the release are “signing”, “partnership”, “agreement” and “provide”. No party uses “acquire”, “purchase”, “buy”, “assign” or “sale”, and no consideration of any kind is described. The release states no transfer of title in any composition. It also does not expressly state that copyright ownership remains where it was, so this record does not assert that either. On its face the document describes services performed over a catalogue and moves no copyright. Naicker’s phrase “added to our roster” is the one line a careless reader could take for a purchase; the same sentence calls the catalogue GMP’s.
It is not a masters deal. Gallo Music Publishers is described in the release as “the publishing arm of one of Africa’s largest and oldest independent major labels, Gallo Record Company”. The subject is compositions, meaning songs as written, not the recordings of them. Rights in the Gallo recorded music catalogue are governed by separate agreements with different counterparties.
It is not a recordings distribution deal. Who distributes Gallo Record Company releases is a separate question.
It is not worldwide in the ordinary sense. Africa is carved out. The agreement covers the rest of the world and, by its own terms, does not reach the continent where this catalogue was written.
The catalogue named in the release
The announcement names the works it treats as representative: multi Grammy award winning isicathamiya group Ladysmith Black Mambazo, The Manhattan Brothers, mbaqanga supergroup Mahlathini and the Mahotella Queens, Caiphus Semenya, African jazz singer Dorothy Masuka, and Sipho “Hotstix” Mabuse. It adds Chicco Twala, producer of the majority of Brenda Fassie’s platinum selling albums, and Mbongeni Ngema, credited with the screenplay for Sarafina, “as well as songs from top selling reggae star Lucky Dube and afro-pop band Mango Groove, to name a few”. Stimela appears once, inside the Henderson quote rather than the catalogue paragraph, but it is in the primary document.
“To name a few” is doing real work there. The release publishes no schedule of works, no count of compositions and no share positions. It is a list of highlights supplied by a party, not an inventory.
A carve-out that not every account carried
The exclusion of Africa appears in the primary announcement and in two independent trade reports, one repeating “worldwide agreement, excluding Africa” verbatim and the other rendering it as “a worldwide agreement, which excludes Africa”. A further republication of the same release headlines it as a global deal and carries no exclusion language anywhere in the piece. Anyone relying on that version alone would overstate the territory by an entire continent.
What could not be established
The consideration, in any form. No fee, commission rate, administration percentage, advance, minimum guarantee or equity is stated in the primary release or in any corroborating report checked.
The term. No duration, commencement date, renewal mechanism or termination right is disclosed, and it could not be established whether the agreement remains in force in 2026. Nor is exclusivity addressed by any source checked.
The schedule of works, the number of compositions, and the share Gallo Music Publishers controls in any individual song. This gap matters. A publisher may own a composition outright, or may itself hold it under an administration or sub-publishing arrangement granted by the writer or an estate. No document checked establishes which position Gallo Music Publishers holds in the works named above. The agreement therefore places an administrator over a catalogue whose own underlying ownership position is not publicly established.
Who administers the catalogue inside Africa. The Cowling quote refers to administration “outside of Africa’s borders” being in the counterparty’s hands, which is consistent with the African position being unchanged, but no document checked states the African arrangement expressly.
South Africa’s Companies and Intellectual Property Commission publishes no open API, so the Gallo publishing entities have not been checked against the South African register.
