Unfair Gaps🇦🇪 UAE

Artists and Writers Business Guide

14Documented Cases
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All 14 Documented Cases

عدم الامتثال التشريعي ومخاطر الإنفاذ

Estimated AED 50,000–500,000 per infringement lawsuit (precedent: typical statutory damages 2–5x tariff rates; UAE music tariffs estimated AED 500–2,000/month per venue); cumulative penalties across unlicensed venues: AED 10–50 million sector-wide.

Federal Decree Law No. 38 of 2021 empowers EMRA to enforce music licensing rights. Non-compliance by venues, hotels, restaurants, broadcasters, and digital platforms exposes them to copyright infringement claims, injunctions, and damages. The regulatory framework includes enforcement authority, but specific penalty amounts are under EMRA's tariff scheme (to be published).

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تسريب إيرادات الرويالتي من الموسيقى غير المحصلة

Estimated 2–5% of UAE music industry revenue leakage (MENA market grew 22.8% in 2024); typical loss: AED 15–40 million annually across all rights holders.

Before EMRA's establishment, the UAE lacked a centralized royalty collection mechanism. Rights holders relied on fragmented commercial agreements or informal negotiations, missing royalties from small venues, restaurants, hotels, and digital platforms that avoided formal licensing.

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تأخر توزيع الرويالتي وتعطل التدفق النقدي

6–12 month cash delay on uncollected royalties (opportunity cost ~8% annually on AED 20–50 million stock); estimated AED 1.3–5 million annual working capital impact per mid-size rights holder.

Before EMRA, artists and publishers had to manually identify all commercial users of their work, verify usage data, negotiate licensing fees, and pursue payment collection without regulatory backing. This multi-step process created A/R backlogs and cash flow delays.

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تسرب الإيرادات من الأعمال الفنية غير المفوترة

Estimated 3–8% annual revenue leakage. Example: AED 500,000 annual turnover = AED 15,000–40,000 lost revenue. VAT penalty (if detected): 25–100% of unpaid VAT + interest (reference: FTA penalty schedule).

Manual inventory tracking of original artworks/manuscripts without integrated billing systems leads to: (1) Commissioned works completed but not invoiced; (2) Sales not recorded in accounting system; (3) FTA audit findings of missing/incomplete transaction records; (4) Penalties for undeclared taxable income.

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