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The Polokwane Conference Resolutions on Economic Transformation clearly states that there is a need for "integration of the South African Economy on a fair and equitable basis" and also participation in world trade. It establishes a macro-economic policy that support and sustain economic growth, job creation and poverty alleviation. The entertainment industry remains one of the central pillars of economic development, as it was not hit hard by the recession.

This further indicates that the developmental state needs to promote strong industries and maximise production by making a clear macro-economic analysis. This we can achieve when we emphasis on the achievements of the New Trade Policy and the Industrial Policy Action Plan (IPAP 2) and all other sector plans related thereto.

The state remains an important player in the market not only through regulation but also through direct intervention in the market. The sector possesses a capacity to create more jobs in the economy and to address challenges of equitable share. We need to resolve structural challenges by involving all sectors of our economy by adding value and encourage industrialisation.

The economic recession that beset many countries in the recent past affected economies of countries to a point that there was less consumption demand. As the share of demand fell and profit maximisation was experienced by business at the expense of the poor, but most importantly was that the entertainment industry was less affected as it continues to thrive, and the example can be made with the 2010 FIFA World Cup tourists poured in their numbers and boasted our tourism and hospitality sector.

The entertainment industry carries a huge potential to create more jobs if it can be explored in its entirety. We need to address all issues that inhibit the growth of this sector in order to make sure that it grows and it thrives.

The death of Baba uSimon Mahlathini Nkabinde in 1999, a popular Mbaqanga singer, highlighted the need to re-look the plight of the South African entertainment industry by developing a clear sector plan and to evaluate our regulatory framework to ensure ownership and control of the means of production by the South African Artists. This renowned artist died a pauper, a host of other important artists followed suit and died poor.

Our organisation, the ANC, and government - respectively - needed to act and to act swiftly. President of the ANC, Comrade Jacob Zuma, held a meeting with the artists in 2008 at Monte Casino to take stock of their challenges as part of the ANC manifesto development's stakeholder consultations and also to improve our knowledge of the sector. He further convened a sectoral meeting in November 2009, as head of State and President of the Republic, to further engage the artists and government representatives to follow up on the discussions of the Monte Casino meeting.

In this meeting government made an undertaking to implement all the decisions adopted by that meeting. As the Department of Trade and Industry is the custodian of the Intellectual Property Rights Act, Performers Protection Act, Companies Act and The Copyright Act respectively, it therefore carries the mandate to champion the programme to alleviate the plight of South African Artists. The other related mandate of the department is to expose people to international trade opportunities by ensuring that they accompany government on trade missions to exhibit their work through the Trade Investment South Africa (TISA).

South Africa is still faced with challenges of counterfeit goods and undermining of local content by our airwaves and television. There is no clear relationship between collecting societies, productions companies and artists in beneficiation of their royalties. This matter has been raging for many years, as artists have signed away their rights to the recording companies.

The Department of Trade and Industry should address challenges experienced by artists by putting clear regulatory mechanisms and ownership and control of means of production that is not adequately addressed by the current legislations we have in place.

The DTI also carries the mandate to educate and bring awareness on prospectus business people on contractual obligations and undertaking they get into as part of legal awareness.

It is also widely reported that the recording companies are refusing to distribute needle time royalties informed by different opinions with the registrar of Copyright. This matter is under review by the Copyright Tribunal. Other challenges are that the royalties related to sound recordings, computer programmes, musical and art works, literary, cinematographic, published editions are not regulated leading to heightened allegations of non-distribution of royalties.

We need to be in a position to measure the contribution of copyright on the entire GDP and to gauge the participation of the entertainment industry in economic development as all sectors in society needs to participate in the building of our economy.

In the current conjuncture, there is wide spread allegations that the collecting societies are collecting royalties on behalf of artists and are failing to distribute them. This allegation suggests that the books of the collecting societies needs to be audited as part of the investigations on such serious allegations, and any investment portfolio undertaken, and as investments can vary from fluid capital assets in a form of property. This institutions needs to be checked to verify the legality of procession of funds meant for distribution which a collecting institution might have kept in its coffers, as revenue reservation for interest beneficiation can lead to litigation therefore an institution of a commission becomes the necessary tool to measure the extend of this allegations in a fair and just manner. The terms of reference of the commission will not be open ended as it will not have the capacity to deal with cases dating as back as the medieval periods but will attend to cases
brought to its attention for intervention.

There is a need to boldly redefine the mandate of recording companies and that of collecting societies to adhere to the developmental agenda of the developmental state, a state that seeks to harness the gap between the rich and the poor through intervening in the economic growth path of the country, therefore legislative changes and regulatory framework is imperative to achieve the above. The challenges still facing this industry, is organisation as stated by the ANC President during the Monte casino and the subsequent Sandton meeting, artists need to register their trade activities in an organised manner which complies with the regulatory framework governing this industry, and also allowing access to incentives offered by the ANC-led government for business development.

The South African government would be in a position to provide support for any industry if its intentions are to develop economic growth; this is done through entrepreneurship development programmes and incentives available in government departments. The DTI and other sister departments can collaborate on a programme with the private sector especially on education and awareness campaigns.

Counterfeiting is an international problem that many governments are grappling with, therefore protection of trademark still remains a tedious process. The world has seen syndicates making successful business out of counterfeited products. Litigation processes has taken place in a more punitive format and did not leave much education and awareness to laymen on the streets to avoid buying counterfeited products. The victims of marketing of these products are women and men standing besides streetlights and flee markets selling these products as opposed to the ringleaders who are the producers thereof. The South African Police has been doing diligent work to bring to book perpetrators of counterfeiting and more still needs to be done.

South Africa is also a victim of counterfeiting and the hard hit sector is the music and film industries respectively. The DTI has decided to pitch the protection of IP high on its agenda. Whilst other sections of our society criticizes government by claiming that government is doing less to protect IP and is using outdated laws on