Press Digest - Music royalties confusion with HK firm entry

PETALING JAYA: Intellectual Property Corporation of Malaysia (MyIPO) says the collection of annual royalties and copyright fees in Malaysia by anyone other than the four MyIPO-sanctioned music licensing bodies is illegal.
MyIPO director-general Shamsiah Kamaruddin said this when asked by China Press to comment on reports that a Hong Kong-based entertainment company has ordered 28 Malaysian entertainment outlets to remove the songs of 221 Hong Kong and Taiwan artistes from their title lists or pay annual royalties amounting to 10% of these outlets' turnover.
The four music licensing bodies are Performing Artiste Rights Malaysia Sdn Bhd (PRISM), Music Authors' Copyright Protection Bhd (MACP), Public Performance Malaysia Sdn Bhd (PPM) and Recording Performers Malaysia (M) Bhd (RPM).
"We don't allow a non-authorised entity to collect royalties and copyright fees. If the Hong Kong company indeed wants to collect royalties (from Malaysian companies), it is against the law.
Those who have been approached by the company can report to us,"she said. However, Shamsiah said MyIPO cannot take legal action against the Hong Kong company as the purview to do so rests with the enforcement division of the Domestic Trade, Cooperatives and Consumerism Ministry.
She said MyIPO will decide on the next course of action after consulting its legal advisers. Meanwhile, MyIPO director (copyright and layout designs of integrated circuits division) Mohamed Fairuz Mohd Pilus pointed out that the corporation cannot issue any statement or take action prior to receiving an official report, lest it is unfair to the party concerned.
On the suggestion by Gerakan public service and complaints bureau chief Wilson Lau Hoi Keong to raise the music royalty exemption threshold for petty traders to RM30,000 per annum to benefit small businesses, Mohd Fairuz said the suggestion is an isolated case and within the purview of the four music licensing bodies.
"The Domestic Trade, Cooperatives and Consumerism Ministry had on Sept 9 proposed the exemption of small businesses from paying annual royalties. The four companies have agreed," he said, adding that it is up to them to work out the royalty exemption threshold.
Meanwhile, MACP general manager Chan Miew Lan said the "intervention" of the Hong Kong entertainment company will create more confusion on the issue of royalties and copyright fees in Malaysia.