BROADCASTING INDUSTRY:
ROYALTY AND COLLECTING
SOCIETIES
By :
ZURAIDAH MOHD YATIM
Manager, Legal
Group Legal
Media Prima Berhad
OVERVIEW
Companies Under Media Prima Berhad
Collecting Societies In Malaysia

There are Three (3) major Collecting Societies that
are recognized by the Government of Malaysia :

Music Authors’ Copyright Protection Berhad (MACP)

Public Performance Malaysia Sdn Bhd (PPM)

Malaysia Music Publishers Berhad (MMP)
Music Authors’ Copyright Protection Berhad (MACP)

MACP is a copyright organisation whose main function is to
license users of music and pays the songwriters and
publishers for works that are broadcasted and publicly
performed.

Money is due to MACP for any public performance of music
whether live or recorded from radios and television stations,
mobiles and other service providers.
Music Authors’ Copyright Protection Berhad (MACP)

MACP will pay monies collected from those bodies to their
authors, composers and music publishers.

For the purpose of payment distribution, Licensee has to
send to MACP, on a monthly basis, the music programme
returns which shall include the titles of all programmes,
episodes or series number, musical works used in each
programme and during programme interval together with
the name of the artiste performing the musical works.
Public Performance Malaysia Sdn Bhd (PPM)

PPM is a one stop licensing body set up in 1988 to represent
the recording industry for royalties collections.

PPM is authorized to enter into agreements to grant licenses
for the broadcasting of sound recording and music videos
(“the Repertoire”) belonging to the Recording Companies.
Public Performance Malaysia Sdn Bhd (PPM)

Like MACP, the Malaysian Copyright Act 1987 gives record
companies legal right to control and grant licenses for the
public performance, playing or showing of their sound
recording and music videos.

Like MACP we also have to provide the Cue Sheets or music
usage records to PPM to enable them to distribute the
royalties accordingly.
Malaysia Music Publishers Berhad (MMP)

MMP is a collecting society for synchronization fees. What is
synchronization fees? Synchronization Fees are royalties
paid for the use of music as part of another works, for
example, as background music in film, drama or TV
programmes.

Synchronization Fees are many cash flow streams that are
generated by music companies. The Fees are normally
calculated by collecting societies that act for major music
publishers, giving them an effective monopoly on the
collection of such royalties.
Is Collecting Societies Recognized
By The Government Of Malaysia?

Government of Malaysia recognizes the collecting societies
and they are authorized to collect the royalties.

The Government cannot fix the rates as Copyright is a private
property rights and the Copyright owner will determine their
own rates.

In determining the rates, the Copyright owners will normally
see how essential music is to the users.
How Big Is The Impact On MPB

The impact is huge as we are paying substantial amount of
money to the Collecting Societies.

We have four (4) TV stations and three (3) Radio stations
plus a big production house known as Primeworks Studios
Sdn Bhd

We have blanket agreements with the Collecting Societies
and negotiation is not easy as they are fully aware of music
impact to our stations.
How Big Is The Impact On MPB

While the blanket agreements only covered direct broadcast
of music and synchronisation, we have to pay royalties for
on-grounds event separately.

Among Permit Licenses for on-ground events that need to be
paid separately for MACP and PPM are :
How Big Is The Impact On MPB

Staff Dinner & Dance, Appreciation Dinner, Family Day

Casual Performances e.g. Road Shows held in Shopping
Complexes or Supermarket

Casual Public Performance e.g. mobile track for
promotion purposes

Concerts & Award Presentation e.g. Juara Lagu,
Anugerah Skrin, Mentor, etc.

Jom Heboh & Carnivals
How Big Is The Impact On MPB

The rates charged for the above are based as per
event, per day for each individual stations.

Due to the huge royalties need to be paid, each station
has to factor in budget in their yearly spending to
enable them to pay the licenses accordingly.

Apart from direct broadcast and on groundevents we
are also paying a separate license for streaming of TV
contents through website and mobile.
Copyright And Royalties Awareness

As there are so many royalties involved, we need to
educate not only the staffs but also the top management
as each royalty payment will give a huge impact to our
book.

Each production and programme department need to
plan properly to avoid burst budget.

As at the moment we are working hand in hand with the
Collecting Societies, we are aware of the importance
royalties as copyright is the hard work of the individuals
and need to be respected.
THE END
THANK YOU