PETALING JAYA, Dec 19 — Collective Management Organisations (CMOs) need to provide clear justification if they insist on receiving royalty payment of RM4 million annually.

This was the stand of the Communications and Multimedia Ministry on the royalty issue, which had plagued the local music industry since 2010.

The ministry’s content development division spokesman Ikhwan Nasir Abu Hanipah said solid grounds are needed to warrant the requested amount.

“The justification may be in the form of paperwork that includes artists names, song titles, the total number of times played by RTM or lists of government functions which the songs were played at,” he said.

He said a meeting was held on December 4 by the strategic management division, involving all CMOs to discuss the unsettled payment for 2014.

Ikhwan, however, said the payment could not be issued to all CMOs as Recording Performance Malaysia (RPM) had turned down the amount offered.

“Until we can get all parties to agree on the rate, the ministry will not issue any payment,” he said.

On delays in renewing the royalty payment contract as alleged by MACP, Ikhwan said they needed time to finalise the contract.

“We are working hard to get this issue resolved amicably.

“We had only been tasked to look into the matter last month and we are in the midst of gathering more information,” he said.

Minister Datuk Seri Salleh Said Keruak said the ministry has been paying CMOs.

“In 2014, all four CMOs — Music Author’s Copyright Protection Berhad (MACP), Public Performance Malaysia (PPM), Recording Performance Malaysia (RPM) and Performers Rights and Interest Society of Malaysia (PRISM) were allocated RM566,600, RM435,000 and RM217,800 respectively. This amounted to RM1.2 million.

“Similar amounts of royalty payouts ware also made in 2013 with RM506,600, RM396,000 and RM198,000 disbursed to MACP, PPM, PRISM and RPM respectively,” said Salleh, adding his deputy Datuk Jailani Johari has been tasked to handle the issue.

Meanwhile, RTM director-general Datuk Abu Bakar Ab Rahim said the royalty disbursement for 2015 and 2016 is in accordance to the amount granted by the Finance Ministry in 2014.

“The contract for 2015 and 2016 is still being prepared by the content development division,” he said.

When contacted, MACP’s general manager Chan Miew Lan said they are in the midst of preparing paperwork to justify the need for an increase in royalty payment as requested by the ministry.