THE Domestic Trade and Cost of Living Ministry has announced plans to introduce new operational guidelines for collective management organisations (CMOs) next April to enhance transparency and fairness in royalty collection and distribution.
These guidelines aim to protect the rights and welfare of Malaysian artistes by establishing clearer standards for royalty governance.
Minister Datuk Armizan Mohd Ali said the Malaysian Intellectual Property Corporation will oversee CMOs, which manage royalties associated with copyrighted works.
The decision follows ongoing complaints from artistes, copyright holders and users of copyrighted material.
"There have been concerns about the governance of CMOs, with allegations of low royalty payments and high tariff rates," Armizan said.
"Copyright users also find it challenging to navigate the current system, which requires dealing with multiple CMOs."
The new guidelines, he said, were intended to resolve these issues and enable a more consistent and accountable process.
The guidelines, currently scheduled for finalisation by next month, will be implemented in April next year.
Armizan said: "This is a short-term solution that can be quickly applied while we consider further legal reforms."
He also acknowledged that the Copyright Act of 1987 might need updating to safeguard artistes' interests further.
Although some in the industry have called for a single entity to manage all royalties, there is no consensus among artistes on this issue, with some preferring the choice provided by multiple CMOs.
The Domestic Trade and Cost of Living Ministry has been assessing the feasibility of a unified royalty collection body since March, and currently, there are seven active CMOs in Malaysia.
On another front, the ministry has also addressed the issue of unpaid royalties owed to members of the now-defunct Performers Rights and Interests Society of Malaysia (Prism).
Dissolved in 2017, Prism left 495 members without access to their royalties.
A special committee, formed by the ministry in collaboration with the Insolvency Department, has been working to identify and compensate these artistes.
This year, 25 former Prism members received outstanding royalties dating back to 2018.
The artistes were invited to a recent ministry event in Kuala Lumpur, Sentuhan Kasih Madani, where prominent figures, such as Datuk Yusni Hamid, Datuk Nash, Datuk Francisca Peter, Liza Hanim and others, were present.
Following the signing of documents, these artistes can expect payments in their accounts within two weeks.