CHAPTER 4 ABOUT PRISM BERHAD (The Management) Page 96 SECTION 27A (2) (a) Regulation (5) (2) No Content Of Chapter 4 ABOUT PRISM BERHAD Executive summary 1. What is Prism Berhad? Page 98 98,99 99,100 2. Prism Berhad: Objectives 100 3. Prism Berhad: undertaking commitments of performers' rights collective 101 management organisations (CMO) 4. THE MANAGEMENT OF PRISM BERHA101D Chief Operation Officer Licensing 101 101,102 Documentation and Information Technology 102 Communication and Membership 102 Legal and Administration 102 Finance and Distribution 102 5. Prism Berhad: Who Can Join Prism. 102 6. Prism Berhad: Why Join Prism 103 7. Prism Berhad: How To Join Prism 103 8. Prism Berhad: Regulation And Guidelines 104 9. Rights of Prism Berhad 10. Disputes Procedure 104,105 105,106 Page 97 Appendix: The Organisational Structure PRISM BERHAD [1002266-K]ABOUT PRISM BERHAD ABOUT PRISM BERHAD EXECUTIVE SUMMARY Copyright is classified as an Intellectual Property Right (IPR) (Alastair Dunning, 2004 & 2006). The categorization of copyright as a “property” is deliberate, demonstrating that copyright is something that belongs to someone, cannot be copied or taken away without consent and cannot be abused without the possibility of legal action ensuing. In Malaysia, the Intellectual Property Corporation of Malaysia or MyIPO is the agency responsible for the development of the intellectual property system. Under the purview of the Ministry of Domestic Trade, Co-operatives and Consumerism, MyIPO also manages IP issues including copyrights, patent, trademarks, industrial designs and IC Layout designs protection in Malaysia besides providing legislation advisory services. Economic rights and compensations deriving from such rights are essential forperformers, if those rights are exercised and managed in an efficient and costeffectiveway.Performers´ collective management organisations (PMOs) started to meet regularlyas from the first meeting in Vienna October 1988. The main topics to be discussedthen were – and still are – how to improve the practical cooperation between PMOsworldwide in order to manage and improve performers´ rights. Page For reasons of efficiency andor better safeguarding of performers’ rights PMO’smight also manage performers’ exclusive rights on a voluntary basis throughvoluntary mandates by performers or assignments of their rights to the PMOs.The existence of the great number of performers involved means that the totalsum of remuneration for the use of each recording may have to be shared betweenmany shareholders and the result for each of them is therefore usually rather small.During his or her professional career, an individual performer performs and worksin a large number of productions, constellations or orchestras and for many differentproducers and employers. This fact stresses the need for the performer to gatherthe same category of main economic rights for a particular territory in one PMO. Otherwise he or she will lose all contactswith, or possibility of controlling, his or her individual rights. The current Copyright Act 1987 provides protection for literary works, artistic works, musical works, sound recordings, films, broadcasts and protection for performers. The new Copyright Act 1987 amended by Parliament with effective 1st June 2012 includes payment of royalties to protect the welfare of local artistes. The approve amendments also aims at 98 Performers’ rights affected by mass uses must, as reflected by most nationallegislations, be managed by non-profit organisations established for collectivemanagement of individual rights. Such practical considerations inter alia inducednational and international legislators to provide performers with remuneration rightsregarding certain mass uses and to entrust organisation with the assertion of theperformers’ remuneration rights.Remuneration rights mean statutory licenses given by law to the users to use thefixed performance in the manner described by the law against the payment of theremuneration to the organisation entrusted with the management of the performers’rights. Thus collective management of performers´ rights provide users with aneasy way to clear their obligations vis-à-vis the performers by paying to a singlepoint representing the performers.In some cases national laws provide for a compulsory management of performers’exclusive rights by PMOs as well. Such compulsory management of exclusive rightscomes in practice close to the management of remuneration rights. providing stiffer penalties to penalize and deter copyright infringers by empowering the relevant authorities to carry out enforcement against copyright piracy more effectively. The approve amendments would ensure that Malaysia’s copyright law is consistent and up- todate with the emergence of new media developments in tandem with the international standards. Many of them do not understand the kind of trouble they can get into for improperly including copyrighted material on their sites. Others don’t understand their rights under copyright law, and are easily scared when served with a baseless legal notice. Basically, one cannot put anything (text, images, music, videos, and photos) on the blog that was created by someone else. WHAT IS PRISM BERHAD? PRISM BERHAD (Performers Rights and Interest Society of Malaysia) was established with the main role to collect, distribute, protect the interest and rights of performers incorporated officially on 15th of May 2012. It is a company limited by guarantee, which means that there are no shareholders and no dividends can be paid out. PRISM BERHADact as the Collecting Society or Collecting Management Organization which is a separate entity from acronym ‘Prism’ refers to Performers and Artiste Rights Sdn Bhdwho dissolve its function effective from 1st January 2012. Currently, PRISM BERHAD run by its own members who have been appointed on board through democratically process of election. This process is part and parcel to attain the role of CMO be more transparent, accountable especially on the issues of collecting and distributing remuneration to its members. The Board members of PRISM BERHADwas elected officially during the first annual general meeting held on 7th October 2012 at Dataran Finas, Ulu Kelang, Selangor, has made a decision through their legitimate voting power and giving a mandate for new lineup of leadership to execute any task pertaining to performers rights’ and interest in accordance to constitution and law in force. Copyright Act 1987; Page As the intellectual property contributed 1.3% to growth domestic product (GDP) of Malaysian economic, Prism Berhad will ensure the role of protecting the rights and interest of performers should be seen as mandatory despite governing rules and regulations been implemented and executed in good manner for the interest of its members. 99 PRISM BERHADnew board members were lead by Mr. Anuar Dahlan as President of the Board and back by other ten (10) members from various association and independent member who has a strong background in the musical filed as well as Malaysian music industry.Promoting the tagline of ‘BEBAS & BERSATU’ (freedom and united) PRISM BERHAD hopes that all performers are united and freedom in the spirit of 1 Malaysia concept.The business practice models or any venture in future is no more applicable as the new economic landscape in development country including Malaysia giving a high respect on the human capital asset to develop and stimulate the industry in line with the National Policy of Intellectual Property and National Policy of Creative Industry predominantly in music and sound recording activities. As new economic landscape becomes more challenging, PRISM BERHADhas take into consideration some measure need to be prudent and transformation process especially in the key area of management as a whole. Hence, In order to achieve Prism’s goal, the Board has outline a documents of corporate governance and code of conduct to exercise a Transparency, Accountability and Governance for the interest of its members, licensees and public awareness as well. 2. PRISM BERHAD:Objectives The main objects for which the Company is established are: (a) To act on behalf of the recording performers (hereinafter referred to as “Members” for the purpose of being the artiste, musician or person entitled to the performers’ right in any sound recording which is published for commercial purposes or in respect of which such recording is publicly performed or used directly for broadcast or other communications to the public or otherwise as defined or described under the Copyright Act 1987 and as the Act may be amended, modified, extended or re-enacted from time to time (hereinafter referred to as the “Performers’ Right” and to promote and enforce by all lawful means the Performers’ Right of the Members and generally to watch-over and safe-guard such interest (b) To originate and promote improvements in the laws relating to performers’ Right and the protection and enforcement of the same or such other right or interest of the Members and to support or oppose amendments is such laws and to effect improvements in the administration thereof, and for the purposes aforesaid to petition the Government and take such other steps and proceedings as may be deemed expedient. (c) To diffuse among the Members information upon matters affecting the exploitation of the Performers’ Right and to print, publish, issue and circulate such paper, periodicals, circulars and other literary undertakings as may seem conducive to any of its objects. (d) To acquire by assignment, licence agreement or by any other means the rights in relation to any musical, literary or dramatic work of performing in public, broadcasting, new media, etc and causing to be transmitted to subscribers to a diffusion service, for any and all parts of the world by any means and in any manner whatsoever, and of authorising any such acts. (e) To charge, collect, receive and recover fees and royalties in respect of the use and exercise by others of any rights vested in or controlled by the Company and to institute or defend any legal proceedings for the purpose of enforcing or protecting any rights vested in or controlled by the Company or for the recovery of damages or fees or royalties. Page (g) To distribute to members and other persons, corporations or organisations with which the Company has entered into contracts out of the moneys received by the Company such moneys as shall be available for distribution in accordance with the Articles of Association of the Company and The Distribution Rules. 100 (f) To act as agent for any person, corporation or organisation in respect of any rights relating to performing rights such as musical, dramatic or literary works. (h) To protect and promote the interests of members in relation to performing rights, recorded performance remuneration of their musical, literary and dramatic works. 3.PRISM BERHAD: Undertaking Commitments of Performers' Rights Collective Management Organisations (PMO) The aim of Prism Berhad (Performers Rights and Interest Society of Malaysia) as a Collecting Society is to promote the financial interest of its members by; i) Monitoring, safeguarding and administrating those rights which, according to the Malaysian Copyright Act 1987 with subsequent amendments and additions, are due to performers, and which its members have grant the mandate to Prism Berhad directly. ii) By collecting and distributing remuneration which is due to members according to the above-mentioned legislation or equivalent foreign legislation; as stipulated in the Prism Berhad Distribution Rules) iii) By representing in a corresponding manner even those “performing artistes or performers” who are not members of the “Prism Berhad” for such abovementioned purposes; iv) By working to improve and extend the legal protection afforded to the “performing artistes or performers”; v) By promoting through its own activities the professional interests of “performing artistes or performers”; vi) Prism Berhad will carries out its duty and activities in collaboration with other corresponding foreign organizations of collecting society. 4. THE MANAGEMENT OF PRISM BERHAD The day-to-day operation is headed by the acting Chief Executive Officer, MrAnuar Dahlan who is appointed by the Board of Directors. The CEO also handles the broadcast and new media licensing besides government and international affairsrelations.On special task of interim envoy Mr. Kanaga heading the Director of Strategic & Business Development, while Mr Mahzan B, Director of Corporate Communication & Membership. The Company consists of the following departments: Zureen Awang: Senior Licensing Manager Page Responsible for performing rights licensing matters and educating music users on copyright issues. 101 1. Chief Operation Officer Licensing – acting COO; Madam Zureen Awang Mohd Nazri Mohd Noor: Broadcast and Single Event Licensing Executive MrHasnol Hasan Ariff: Corporate Licensing Executive: 2. Documentation and Information Technology Responsible for maintaining documentation of the Company’s repertoire of musical works, information data system, distributing royalties according to the Distribution Rules adopted by the Board of Directors and reviewed from time to time. Miss Hazilah, Documentation and Information Asst. Manager; and En.Ismanizam Ismail 3. Communication andMembership Responsible for membership affairs including processing of membership applications and coordination of membership functions and services. En. Mahzan B, Puan Nurshahida,Senior Membership Executive and En Saiful Imran b Taib. 4. Legal and Administration Responsible for all legal & enforcement matters Farhatul Ashiati Othman, Legal & Admin Asst.Manager and Cik Nurul Afifah 5. Finance and Distribution Responsible for finance related matters and also general office administration. Easther Leong, Finance and Distribution Manager and Cik Nurul Asyikin ((Refer to appendix of Organisational Structure) 5. PRISM BERHAD:Who Can Join Prism. 5.1 You can join PRISM if you performance in a recorded sound recording by following criteria: 5.2 Please take note that ‘Membership’ is on an individual basis. If you team up with other partner as a band, he or she will also need to apply for membership 102 You are the original performer or artist of a sound recording works You are an arranger or musician on the sound recording works Your work is publicly performed or broadcast You are an Malaysia citizen or permanent resident You are not a citizen or permanent resident of Malaysia but whose performance;i) Takes place in Malaysia ii) Is incorporated in sound recordings that are protected by the Copyright Act, 1987; or iii) Has not been fixed in a sound recording but is included in broadcast qualifying for protection under the Copyright Act, 1987 Page (a) (b) (c) (d) (e) 6. PRISM BERHAD:Why Join Prism a) PRISM's management has the knowledge, experience and strength to adequately protect and enforce performers and artistes' rights, and to collect and administer royalties on behalf of performers and artistes. b) If your music is performed in public - for example at pubs, clubs, festivals and concerts - or broadcast on radio, TV (including pay TV), you are entitled to royalty payments. This is because the New Copyright Act 2000 declares respect to performers under the provision of 16B of "performing rights" which cover the protection of copyrights uses of their sound recording. c) PRISM does collectively what would otherwise be difficult for artist or music users to do on an individual basis. We license music users, collect licence fees and pay the owners of the performing rights in the form of royalties. d) Through reciprocal arrangements with performing right societies world-wide, PRISM can also collect royalties for you when your music is played overseas. These arrangements essentially give Malaysian Artistes the same benefits as local artist in many countries. Royalty payment is however subject to the existing copyright law in each country and the individual policies of the affiliated societies. 7. PRISM BERHAD:How to Join Prism Joining PRISM is easy and doesn't cost anything. Any performer (or artiste) who is interested to have his or her performers' rights protected and enforced by PRISM may join PRISM by filling up a Membership Registration Form and sign a Letter of Authorization for Collection of Royalties and a Letter of Authorization for Enforcement, thereby giving PRISM the right to collect royalties on behalf of the performer and to enforce the performer's rights. There are two options of registration as member: 1. Download the form and post it to our office. 2. Online registration - Fill up your particulars online, print out the final page and post it to our office or via online registration. 3. For offline Song Registration please download this form - Song Registration Radio- & TV / broadcasting Companies Hotels & Restaurants Shops Discotheques Theatres, Museums Etc Sport Arenas New Media Source Page 103 Areas for licensing; 8. PRISM BERHAD: Regulation and Guidelines 8.1 PRISM BERHAD shall consider, draft, publish and lay down from time to time regulations and guidelines relating inter alia to the following: (i) Admission requirements for Full and Associate Membership; (ii) Threshold for distribution of monies; (iii) The establishment of distribution scales and points systems for the distribution of “Recorded Performance Remuneration”; (iv) Retention and/ or distribution of unascertained monies; (v) The setting of trust funds and benevolent funds; (vi) Notifications in relation to relevant agreements by Members; (vii) Distribution of revenue; (viii) Division of monies; (ix) Legal proceedings; (x) The extent of the “Recorded Performance Remuneration” collected by PRISM BERHAD; (xi) Postal ballots; (xii) Relationship with other collecting societies whether in Malaysia or abroad in relation to rights licensed, or monies collected by foreign societies in cases where the rights exercised are more extensive than “Recorded Performance Remuneration” but relate to either the broadcast, public use or communication to the public of the live or recorded performances of Performers; (xiii) Death of a Member and succession to his or her interests. NOTES: Clause 8Bstates that PRISM BERHAD will be considering and publishing, from time to time, regulations and guidelines which will be binding on its members. 9. Rights of PRISM BERHAD 9.1 PRISM BERHAD may distribute, allocate and apply unattributed or unallocated sum in the general interest of Performers’ professions. 9.2 The Executive Board of PRISM BERHAD may call for proof of performance in a sound recording and the Member’s contribution and/ or participation in that sound recording. Page 9.4 PRISM BERHAD shall have power to affiliate to and/ or grant any of the rights given to it hereunder to any other society. 104 9.3 The Member shall indemnify PRISM BERHAD in relation to any claims made or monies received by PRISM BERHAD in the legitimate exercise of the rights granted to it by the Member hereunder where a claim in respect of the same public performance or broadcasting is made by the Member, either on his or her account, or through some Foreign Society or third party. 9.5 PRISM BERHAD has the rights to debit from the account of any Member any sums paid over to such Member where a claim is made against PRISM BERHAD in relations to monies distributed to the same Member in respect of the same event giving rise to “Recorded Performance Remuneration”. 9.6 PRISM BERHAD shall have First Charge in respect of its administration and other cost in accordance with the guideline laid down under Clause 4 hereof over any “Recorded Performances Remuneration” collected. 10. Disputes Procedure PRISM BERHAD may, and shall, lay down rules and procedures for the settling of any grievance or dispute whether in relation to monies arising or distributed, or other matters relating to PRISM BERHAD in which the Member has legitimate interest. PRISM BERHAD may lay down separate procedures in relation to internal and administrative matters and/ or to the auditing and verification of accounts. 10. 1 Alternative Dispute Resolution for Members PRISM provides an Alternative Dispute Resolution (ADR) service to resolve disputes between members. Generally, the disputes are between performers or between performers and smaller sound recording owners.The disputing parties, with the assistance of a mediator, identify the disputed issues, develop options, consider alternatives and endeavour to reach agreement. PRISM also offers ADR by means of expert determination subject to circumstances. The program is primarily a service to members without access to resources. There is a threshold for a dispute – the disputed work must have been allocatedRM500 (to avoid disputes over non earning works) A work cannot be referred to ADR if it has been registered (insofar as the details of the dispute are concerned) for more than three years (being the last date on which distributions could be altered) This procedure is not appropriate for large catalogue disputes between producers, but PRISM can facilitate dispute resolution procedures for such disputes, if requested. Mediation days are allocated throughout the year. A single mediator is appointed from a panel, for all disputes on a particular day. The panel of mediators is not restricted to lawyers. PRISM pays for the mediator to attend at prism (including Kuala Lumpur and other capital city offices), at a fixed daily rate. Members will be required to demonstrate the validity of their claim in a statutory declaration. Page 105 PRISM subsidises the ADR program to offer a low cost option to members. The service operates within the following discretionary guidelines. All disputing members involved are required to pay an administration fee of RM250 plus GST. 106 If a dispute is resolved at the mediation, the settlement will be signed by the members on the day. If the dispute cannot be resolved, prism plays no further role in the dispute or its resolution. Page APPENDIX THE MANAGEMENT TEAM DESIGNATION ACTING CEO (INTERIM) DIR. OF CORP.COMM & MEMBERSHIP DIR. OF STRATEGIC & BUS DEV ACTING COO CUM S.MGR LICENSING S.MGR – FINANCE & DIST. ASST. MGR – DOCUMENTATION & ICT ASST. MGR – LEGAL & ADMIN BROADCAST & SINGLE LICENSING CORP. LICENSING FINANCE & DISTRIBUTION DOCUMENTATION & IT CORP. COMM & MEMBERSHIP LEGAL HR & ADMIN 107 NAME ANUAR DAHLAN MAHZAN B KANAGA SELVARAJ PN. ZUREEN AWANG EASTHER LEONG HAZILAH TEH FARHATUL OTHMAN MOHD NAZRI MOHD NOOR HASNOL ARIFF NURUL ASHIKIN GHAZALI ISMANIZAM ISMAIL SAIFUL IMRAN NADIA MADUARRIN AFIFAH MOHAMED Page NO 1 2 3 4 5 6 7 8 9 10 11 12 13 14