ECCO’s Application for Interim Injunction Denied by High Court

The High Court of Justice in Saint Kitts and Nevis delivered a significant ruling on June 5, 2025, denying the Eastern Caribbean Collective Organisation for Music Rights (ECCO) Inc.’s application for an interim injunction. ECCO sought to suspend the enforcement of the 2024 Copyright (Collective Management Organisations) Regulations, a legislative framework designed to regulate Collective Management Organisations (CMOs) operating within the dual-island nation. The Regulations, enacted under the Copyright Act No. 14 of 2024 and effective since December 2024, aim to ensure transparency, accountability, and fairness within the creative industries by mandating licensing and oversight of CMOs. The Court’s decision reinforces the government’s authority to implement a licensing regime aimed at protecting local rights holders and the public from potentially exploitative practices within the copyright management sphere. The core legal challenges presented by ECCO against specific aspects of the Regulations are slated for a future trial, providing an opportunity for a more comprehensive examination of the legal arguments.

The government’s successful opposition to the injunction application rested on several key pieces of evidence presented to the Court. Firstly, the government demonstrated that ECCO had been actively involved in consultations regarding the development of the Regulations since 2023, indicating an awareness of the impending changes. Secondly, despite this awareness, ECCO failed to apply for the necessary authorization to operate under the new regulatory framework, choosing instead to continue issuing licenses, an act deemed unlawful after the Regulations came into effect. This non-compliance further fueled the government’s argument against granting the injunction.

Thirdly, the government highlighted ECCO’s precarious corporate standing, citing the organization’s failure to file annual returns for three consecutive years – 2023, 2024, and 2025 – until prompted by a public notice issued by the Ministry of Justice and Legal Affairs. This failure to comply with basic corporate governance requirements cast doubt on ECCO’s operational integrity. Furthermore, ECCO’s provisional status with the international oversight body, CISAC, coupled with reported delays in royalty payments to creatives spanning several years, painted a picture of an organization struggling with internal management and financial stability. These factors collectively weakened ECCO’s position and bolstered the government’s arguments against the injunction.

The 2024 Copyright Regulations, born from extensive collaboration with regional and international stakeholders, including the World Intellectual Property Organisation (WIPO), represent the culmination of over three years of public consultations. This comprehensive approach underscores the government’s commitment to establishing a robust and balanced regulatory environment for copyright management. The Regulations aim to address the critical need for lawful and credible collective rights management, protecting creative industries from opaque or potentially improper licensing practices and empowering the state to safeguard the economic rights of artists, musicians, and other copyright holders.

The government’s stance, articulated by the Minister of Justice and Legal Affairs, Hon. Garth Wilkin, emphasizes the importance of the Regulations in establishing fairness and transparency within the creative economy. The Regulations are intended to prevent the exploitation of artists and ensure that they receive their due compensation for their creative works. The government’s commitment extends to encouraging all organisations operating within the collective management sector to adhere fully to the legal framework, fostering a sustainable and equitable environment for all stakeholders.

The public has been explicitly informed that ECCO currently lacks the authorization to operate within the jurisdiction of Saint Kitts and Nevis. Furthermore, no other collective management organization (CMO) has received the necessary authorization to operate under the new Regulations, emphasizing the government’s commitment to enforcing the new legal framework. The legal representation in the case, with Victor Dane Hamilton appearing for ECCO and the Solicitor General and Crown Counsel II, Sasha Lloyd, representing the government, underscores the seriousness of the legal proceedings and the implications for the future of copyright management in Saint Kitts and Nevis. The upcoming trial will provide an opportunity for a more in-depth examination of the legal arguments presented by both sides and will further clarify the implementation and impact of the new Regulations on the creative industry.