REGIONAL DEVELOPMENT & IP

CMOS ISSUES ~ MALAYSIA EXPERIENCE &APPROACH

1Mr. Azrul Shahreen
Legal Division and Corporate Secretary
Intellectual Property Corporation of Malaysia (MyIPO)IMPACT AND CHANGES ON CMOs
BEFORE 2012

CMOs - organized
themselves
No monitoring
systems bygovernment.
Consultation
meeting
Fake CMOs
Excessive tariff

MALAYSIA COPYRIGHT ACT(AMENDMENT) 2012
Regulating Licensing Bodies

2019
New business model

Definition & Function of theLicensing Body
Licensing Body which fails to meetits obligation after being declared
will be revoked
Government will monitor theLicensing Body’s activities topromote Transparency,
Accountability & Good GovernanceOperation without declaration as
licensing body is an offence – sentence
not more RM500,000 (USD 125,000)

Amendment to existing
provisions relates tolicensing body2

COMPLIANCE

SECTION 27A, LICENSING BODYCOPYRIGHT ACT 1987

27A (2)
An application for a declaration shall be made in such form and on such medium as the Controller may determine whichshall contain the following information:(a)The applicant’s constituent document, which has as its main object, or one of its main objects, the negotiation orgranting, either as owner or prospective owner of copyright or as agent for him, of copyright licences, and whose objects
also include the granting of licences covering works of more than one author; and(b)The list of copyright owners or their agents who are members of the applicant.
27A (3)
Upon receipt of an application, the Controller may declare an applicant to be a licensing body and issue a declarationin writing to that effect to the said applicant.

27A (4)
Notwithstanding subsection (3), the Controller shall refuse an application if the information provided by the applicant
pursuant to subsection (2) is insufficient or unsatisfactory to show that the applicant is fit and proper to be a licensingbody.
27A (5)AFTER DECLARATION
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The licensing body shall provide the Controller with a copy of its profit and loss account, balance sheet and auditor’sreport which are tabled at the licensing body’s annual general meeting not later than one month after the date of theannual general meeting.

APPLICATION PROCESSELEMENT OF TAG(TRANSPARENCY, ACCOUNTABILITY, GOOD GOVERNANCE)MEMBERS

USER
GOOD GOVERNANCE

TRANSPARENCYACCOUNTABILITY

12MANAGEMENT

3TARIFFS

4DISTRIBUTION

5BOARD OF
DIRECTORSMANDATEREPORTPRESENTED4BEFORE

1989
MACP BHD[Composers, Lyricist,
Music Publisher]

COPYRIGHTLAWAMENDMENT2012
SEPT 2012
MACP BHDAFTER
DECLARATION BY
COPYRIGHT
CONTROLLERMAR 2013
PPM SDN
BHDMAR 2013
RPM BHD[Performer]

MILESTONES OF LICENSING BODY IN MALAYSIA1988
PPM SDN BHD[RecordingCompany]

2001
PRISM SDN BHD[Performer]

JUL 2013
PRISM BHD
[Performer]

NOTES:
MACP : Malaysia Authors’ Copyright Protection
PPM : Public Performance Malaysia
RPM : Recording Performers Malaysia
PRISM : Performers’ Rights Interest Society Malaysia

5Music Rights Malaysia Berhad

To act as Single Collecting Licensing Bodies forMusical Work Rights

Recording Rights(4 Directors
Represent 50% of Votes)(2 Directors)
represent 25% of votes

Distribution Based on 2 : 1 : 16••

MEMBERSHIP – Direct with Existing CMOs
MRM Bhd only cater USER DATA for collection

Performing Rights(2 Directors)
represent 25% of votes

SINGLE COLLECTION BODY

One Stop Licensing
ConvenienceSingle Consolidated Tariff

Abrupt Disruption of Status
QuoTransition Issues

Increased Transparency

Additional Layer/Tax Issues

More Cost Efficient

2 Performers CMOs DistributionIssues
Possible Withdrawal ofRecord Labels (DistributionSplit Issue)

Improved Market Coverage
Govt. Must Support

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MULTIPLE COLLECTION BODY

Maintain Previous Status Quo
No Additional Layer

Inconvenience/Confusion forUsers
Multiple Tariffs

Individual Body Autonomy

Replicated Collections Costs

Less Trust Issues

Poorer Market CoverageLess Back-End Issues

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PROBLEMS – ISSUES – RESOLUTION
 Unsatisfied CMOs members – unclear on membership due two

CMOs covering on performers
 Unsatisfied Users – tariff scheme imposed… e.g use ofmusic/songs at village wedding festive Unresolved dissatisfaction between CMOs – RPM v PRISM
 Distribution & royalty issues among CMOs

 Way forward and resolution by Task Force on CMOs concerning

collection of royalties issue; Government way forward approach based on Task Force’s findings& report.
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if you wish to copy, COPY itRIGHT.
If NOT, then DON’T‘cOz iT’s COPYRIGHTED~!

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