BROADCASTING INDUSTRY: BROADCASTING INDUSTRY:

ROYALTY AND COLLECTING ROYALTY AND COLLECTING SOCIETIESSOCIETIES

By : By :

ZURAIDAH MOHD YATIMZURAIDAH MOHD YATIM

Manager, LegalManager, Legal

Group LegalGroup Legal

Media Prima BerhadMedia Prima Berhad

OVERVIEWOVERVIEW

Companies Under Media Prima BerhadCompanies Under Media Prima Berhad

Collecting Societies In MalaysiaCollecting Societies In Malaysia

There are Three (3) major Collecting Societies There are Three (3) major Collecting Societies that are recognized by the Government of that are recognized by the Government of Malaysia :Malaysia :

Music Authors’ Copyright Protection Berhad (MACP)Music Authors’ Copyright Protection Berhad (MACP)

Public Performance Malaysia Sdn Bhd (PPM)Public Performance Malaysia Sdn Bhd (PPM)

Malaysia Music Publishers Berhad (MMP)Malaysia Music Publishers Berhad (MMP)

Music Authors’ Copyright Protection Berhad (MACP) Music Authors’ Copyright Protection Berhad (MACP)

MACP is a copyright organisation whose main function is MACP is a copyright organisation whose main function is

to license users of music and pays the songwriters and to license users of music and pays the songwriters and

publishers for works that are broadcasted and publicly publishers for works that are broadcasted and publicly

performed. performed.

Money is due to MACP for any public performance of Money is due to MACP for any public performance of

music whether live or recorded from radios and music whether live or recorded from radios and

television stations, mobiles and other service providers. television stations, mobiles and other service providers.

Music Authors’ Copyright Protection Berhad (MACP) Music Authors’ Copyright Protection Berhad (MACP)

MACP will pay monies collected from those bodies to MACP will pay monies collected from those bodies to

their authors, composers and music publishers.their authors, composers and music publishers.

For the purpose of payment distribution, Licensee has to For the purpose of payment distribution, Licensee has to

send to MACP, on a monthly basis, the music send to MACP, on a monthly basis, the music

programme returns which shall include the titles of all programme returns which shall include the titles of all

programmes, episodes or series number, musical works programmes, episodes or series number, musical works

used in each programme and during programme used in each programme and during programme

interval together with the name of the artiste interval together with the name of the artiste

performing the musical works.performing the musical works.

Public Performance Malaysia Sdn Bhd (PPM) Public Performance Malaysia Sdn Bhd (PPM)

PPM is a one stop licensing body set up in 1988 to PPM is a one stop licensing body set up in 1988 to

represent the recording industry for royalties collections. represent the recording industry for royalties collections.

PPM is authorized to enter into agreements to grant PPM is authorized to enter into agreements to grant

licenses for the broadcasting of sound recording and licenses for the broadcasting of sound recording and

music videos (“the Repertoire”) belonging to the music videos (“the Repertoire”) belonging to the

Recording Companies. Recording Companies.

Public Performance Malaysia Sdn Bhd (PPM) Public Performance Malaysia Sdn Bhd (PPM)

Like MACP, the Malaysian Copyright Act 1987 gives Like MACP, the Malaysian Copyright Act 1987 gives

record companies legal right to control and grant record companies legal right to control and grant

licenses for the public performance, playing or showing licenses for the public performance, playing or showing

of their sound recording and music videos.of their sound recording and music videos.

Like MACP we also have to provide the Cue Sheets or Like MACP we also have to provide the Cue Sheets or

music usage records to PPM to enable them to music usage records to PPM to enable them to

distribute the royalties accordingly.distribute the royalties accordingly.

Malaysia Music Publishers Berhad (MMP)Malaysia Music Publishers Berhad (MMP)

MMP is a collecting society for synchronization fees. MMP is a collecting society for synchronization fees.

What is synchronization fees? Synchronization Fees are What is synchronization fees? Synchronization Fees are

royalties paid for the use of music as part of another royalties paid for the use of music as part of another

works, for example, as background music in film, drama works, for example, as background music in film, drama

or TV programmes.or TV programmes.

Synchronization Fees are many cash flow streams that Synchronization Fees are many cash flow streams that

are generated by music companies. The Fees are are generated by music companies. The Fees are

normally calculated by collecting societies that act for normally calculated by collecting societies that act for

major music publishers, giving them an effective major music publishers, giving them an effective

monopoly on the collection of such royalties. monopoly on the collection of such royalties.

Government of Malaysia recognizes the collecting Government of Malaysia recognizes the collecting

societies and they are authorized to collect the societies and they are authorized to collect the

royalties.royalties.

The Government cannot fix the rates as Copyright is a The Government cannot fix the rates as Copyright is a

private property rights and the Copyright owner will private property rights and the Copyright owner will

determine their own rates.determine their own rates.

In determining the rates, the Copyright owners will In determining the rates, the Copyright owners will

normally see how essential music is to the users.normally see how essential music is to the users.

Is Collecting Societies Recognized Is Collecting Societies Recognized By The Government Of Malaysia?By The Government Of Malaysia?

The impact is huge as we are paying substantial The impact is huge as we are paying substantial

amount of money to the Collecting Societies.amount of money to the Collecting Societies.

We have four (4) TV stations and three (3) Radio We have four (4) TV stations and three (3) Radio

stations plus a big production house known as stations plus a big production house known as

Primeworks Studios Sdn BhdPrimeworks Studios Sdn Bhd

We have blanket agreements with the Collecting We have blanket agreements with the Collecting

Societies and negotiation is not easy as they are fully Societies and negotiation is not easy as they are fully

aware of music impact to our stations.aware of music impact to our stations.

How Big Is The Impact On MPBHow Big Is The Impact On MPB

While the blanket agreements only covered direct While the blanket agreements only covered direct

broadcast of music and synchronisation, we have to broadcast of music and synchronisation, we have to

pay royalties for on-grounds event separately.pay royalties for on-grounds event separately.

Among Permit Licenses for on-ground events that Among Permit Licenses for on-ground events that

need to be paid separately for MACP and PPM are :need to be paid separately for MACP and PPM are :

How Big Is The Impact On MPBHow Big Is The Impact On MPB

Staff Dinner & Dance, Appreciation Dinner, Family DayStaff Dinner & Dance, Appreciation Dinner, Family Day

Casual Performances e.g. Road Shows held in Shopping Complexes Casual Performances e.g. Road Shows held in Shopping Complexes or Supermarketor Supermarket

Casual Public Performance e.g. mobile track for promotion purposesCasual Public Performance e.g. mobile track for promotion purposes

Concerts & Award Presentation e.g. Juara Lagu, Anugerah Skrin, Concerts & Award Presentation e.g. Juara Lagu, Anugerah Skrin, Mentor, etc.Mentor, etc.

Jom Heboh & CarnivalsJom Heboh & Carnivals

How Big Is The Impact On MPBHow Big Is The Impact On MPB

The rates charged for the above are based as per The rates charged for the above are based as per

event, per day for each individual stations.event, per day for each individual stations.

Due to the huge royalties need to be paid, each Due to the huge royalties need to be paid, each

station has to factor in budget in their yearly station has to factor in budget in their yearly

spending to enable them to pay the licenses spending to enable them to pay the licenses

accordingly.accordingly.

Apart from direct broadcast and on groundevents Apart from direct broadcast and on groundevents

we are also paying a separate license for streaming we are also paying a separate license for streaming

of TV contents through website and mobile.of TV contents through website and mobile.

How Big Is The Impact On MPBHow Big Is The Impact On MPB

As there are so many royalties involved, we need to As there are so many royalties involved, we need to

educate not only the staffs but also the top management educate not only the staffs but also the top management

as each royalty payment will give a huge impact to our as each royalty payment will give a huge impact to our

book.book.

Each production and programme department need to plan Each production and programme department need to plan

properly to avoid burst budget.properly to avoid burst budget.

As at the moment we are working hand in hand with the As at the moment we are working hand in hand with the

Collecting Societies, we are aware of the importance Collecting Societies, we are aware of the importance

royalties as copyright is the hard work of the individuals royalties as copyright is the hard work of the individuals

and need to be respected.and need to be respected.

Copyright And Royalties AwarenessCopyright And Royalties Awareness

THE ENDTHE ENDTHANK YOUTHANK YOU