Karyawan Calls On Govt To Take Over Music Royalty Collection, Distribution System

By Bernama Lifestyle Reporter

KUALA LUMPUR, June 29 (Bernama) -- The Malaysian Artistes Association (Karyawan) has called on the government to take over the management of Malaysia's music royalty collection and distribution system to address issues that have plagued the industry for more than two decades.

Karyawan president Datuk Freddie Fernandez said in a statement today that the proposal was among several resolutions unanimously adopted at the association's annual general meeting.

The proposal is modelled after Indonesia's system, where the National Collective Management Institution oversees the centralised collection of public performance royalties.

"Indonesia faced similar challenges until the government stepped in and assumed responsibility for royalty collection from the existing collecting bodies," he said.

Freddie said that with public performance royalty collections approaching RM200 million a year, it is time for Malaysia to reform its royalty collection and distribution system to ensure it is fairer, more transparent and accountable.

He said the local music industry has long faced complaints over a lack of transparency in royalty management, as well as the high administrative costs, fragmented collection structure, and disputes among collective management organisations and industry stakeholders over royalty distribution.

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Karyawan also proposed that the government develop a centralised digital royalty management platform under government supervision to handle music rights registration, usage tracking, royalty calculations and royalty distribution.

"The proposed platform would serve as the national music rights library and a government-managed royalty distribution system, where every musical work, sound recording, ownership structure, licensing record, usage report, royalty collection and distribution payment is recorded and verified, and auditable," he said.

Freddie said the system would ensure every use of a song is matched to its legitimate rights holder, allowing royalties to be calculated and distributed automatically based on verified ownership data and actual usage.

He added that the approach would reduce duplication in administrative processes, improve transparency and provide a clear audit trail for the government, rights holders, users and other stakeholders.

"It would also, to a certain extent, help regulate the use of AI-generated music – something that is likely to happen if no action is taken," he said.

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Freddie said the government-supervised model is consistent with the Copyright (Collective Management Organisation) Guidelines 2025 as it would strengthen governance, transparency, record-keeping, reporting and accountability in royalty management.

He said the proposal follows recent developments involving Karyawan, the Intellectual Property Corporation of Malaysia (MyIPO), the Ministry of Domestic Trade and Cost of Living and the three royalty collection bodies – Music Authors' Copyright Protection, Public Performance Malaysia and Recording Performers Malaysia – which have taken legal action against the government.

Karyawan also raised concerns over record labels allegedly failing to pay artistes their rightful share of royalties from album sales and social media platforms.

"This is evident from the case of the late Malaysian music legend Sudirman Arshad, whose family only recently received RM367,000 in royalties accumulated over several decades after waiting for many years.

"Since then, many of our members have come forward to say they have not received fair royalties from record sales and streaming services. Karyawan is currently gathering the necessary information to represent them in seeking justice and a fair resolution to their claims," he said.

-- BERNAMA