CMO Operating Guidelines Expected In April 2025 To Improve Royalty Claims Process - Armizan

KUALA LUMPUR, Nov 7 (Bernama) -- 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.

“We are finalising the guidelines. Insya-Allah, they will be completed by December this year, and KPDN will announce them to the public. The guidelines are expected to come into effect in April 2025,” he told reporters after officiating the Sentuhan Kasih MADANI programme, today.

He further noted that the guidelines would 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.

Regarding the Sentuhan Kasih MADANI programme, Armizan said that it involved artistes who had faced royalty payment arrears, due to the termination of the Performers’ Rights and Interest Society of Malaysia (PRISM) Berhad, which was responsible for collecting and distributing music royalties, in April 2019.

Following the termination, Armizan said that outstanding issues related to royalty payments for those registered under PRISM have persisted, and the KPDN remains committed to ensuring that these groups receive their due rights.

“A total of 495 artistes were registered under PRISM. Some of them have received their royalties, but 164 artistes are still awaiting payment. Alhamdulillah, this year, we have successfully met with 25 artistes, who have signed the necessary documents for the royalty claim process. Within two weeks, the payments will be credited to their accounts," he said.

A total of RM2,040,846.84 in royalties is available for distribution to 495 eligible PRISM members, based on the use of their songs in 2018. Of this total, RM339,058.57 remains unclaimed by 164 members.

Commenting further, Armizan explained that KPDN is holding multiple engagement sessions with stakeholders and artistes’ associations in the music industry, to improve the management of royalty claims under the Copyright Act 1987.

“There has been a proposal to establish a single CMO, with some artistes advocating for this due to the challenges of dealing with multiple CMOs. However, no consensus has been reached on this matter.

He said some artistes prefer to maintian various CMOs, allowing then to choose which CMO to manage their royalty claims.

“We are continuing our engagement on this issue before proceeding with any amendments to the Copyright Act 1987, as it involves various considerations,” he said.

-- BERNAMA