Music royalty transparency reforms remain blocked by legal challenge - Amirzan

THE Government’s planned reforms to improve transparency in music royalty collection and distribution remain stalled by a court challenge brought by three collective management organisations, delaying the enforcement of guidelines intended to tighten oversight of the industry.

Domestic Trade and Cost of Living (KPDN) Minister Datuk Armizan Mohd Ali, in the Dewan Rakyat today, said the guidelines issued by the Malaysian Intellectual Property Corporation (MyIPO) on Jan 17, 2025, had not been enforced following a judicial review filed by Music Authors Copyright Protection (MACP), Public Performance Malaysia (PPM) and Recording Performers Malaysia (RPM) on April 16 that year.

The substantive hearing for the judicial review is scheduled for Nov 24, the minister said in a written parliamentary reply to Rasah MP Cha Kee Chin.

The guidelines were due to take full effect on Jan 17, 2026, and were intended to strengthen CMO governance, including requirements involving financial records, tariff management, licensing agents and voting rights at annual general meetings.

Armizan said enforcing the guidelines was critical to improving transparency in determining reasonable licensing tariffs, collecting fees and distributing royalties to copyright holders and performers.

“The ministry will continue to defend these guidelines through the appropriate legal channels,” he said.

MyIPO has regulated collective management organisations since 2012 under Section 27A of the Copyright Act 1987 and the Copyright (Collective Management Organisation) Regulations 2012.

Amendments to the Act in 2019 introduced Section 59C, which allows the Copyright Tribunal to hear and decide royalty distribution disputes between a CMO and its members, provided both parties agree to refer the dispute to the tribunal.

Further amendments in 2022 required CMOs to renew their declarations every two years and submit compliance documents for review under Section 27A(3A). Section 27M also empowered the Controller of Copyright to issue guidelines on CMO declarations and operations.

The ministry said stakeholder consultations held between 2023 and 2024 involved government agencies, industry groups, academics, CMO representatives and local arts practitioners.

The reforms were intended to address disputes over music licensing between CMOs and users of copyrighted works, as well as disagreements over royalty distribution between organisations and rights holders, including composers, copyright owners and performers. - October 13, 2026