broadcasting industry: royalty and collecting societies by : zuraidah mohd yatim manager, legal...
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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
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