KUALA LUMPUR: The Ministry of Domestic Trade and Cost of Living (KPDN) will introduce operating guidelines for Collective Management Organisations (CMOs), as a key measure to improve royalty claims, particularly for local artistes. Its Minister Datuk Armizan Mohd Ali explained that the initiative aims to monitor and take more organised action in the event of breaches in the conditions set for CMOs, under the Copyright Act 1987.

According to BERNAMA News Agency, the guidelines are being finalised and are expected to be completed by December this year, with KPDN set to announce them to the public. They are anticipated to be effective by April 2025. The guidelines are designed to empower the Malaysian Intellectual Property Corporation (MyIPO) to oversee the management of royalty collection and distribution by CMOs, enhancing transparency and accountability to protect the rights and welfare of artistes and consumers alike.

During the Sentuhan Kasih MADANI programme, Armizan highlighted issues faced by artistes
due to the termination of the Performers’ Rights and Interest Society of Malaysia (PRISM) Berhad in April 2019. This organisation was previously responsible for collecting and distributing music royalties, and its termination has led to ongoing challenges in royalty payments for registered artistes.

Armizan noted that out of 495 artistes registered under PRISM, 164 are still awaiting their royalty payments. This year, KPDN has successfully engaged with 25 artistes, facilitating the signing of necessary documents for the royalty claim process, with payments expected to be credited within two weeks. A total of RM2,040,846.84 in royalties is available for distribution to eligible PRISM members, with RM339,058.57 remaining unclaimed by 164 members.

To address these issues, KPDN is engaging with stakeholders and artistes’ associations in the music industry to improve the management of royalty claims under the Copyright Act 1987. Armizan mentioned that there is a proposal to establish a single CMO, although no co
nsensus has been reached, as some artistes prefer the option to choose from various CMOs to manage their royalty claims. The Ministry is continuing its engagement on this issue before proceeding with any amendments to the Copyright Act 1987.