PETALING JAYA, Dec 19 — Music Authors’ Copyright Protection (MACP) Berhad is seeking RM4 million annually in royalty payout from the government.
The non-profit organisation that represents composers, lyricists and publishers said this took into account the extensive use of copyrighted works by government-owned Radio Televisyen Malaysia (RTM) that operates three television stations and 34 radio stations.
MACP general manager Chan Miew Lan said the authorities have cited the economic situation as to why MACP’s 3,512 members will not see an increase in royalty payout.
“Together with the Public Performance Malaysia (PPM), we have arrived at RM4 million as an ideal figure,” said Chan.
“We have suggested funds from the National Creative Industry Policy be used to help the music industry by channelling the funds directly to CMOs rather than helping a handful of individuals in the industry.”
Chan said the government recognises it has to pay, but the process was slow and the amount lower than it should be.
“We have sought an increase over the years, but they have always come back to us claiming cabinet-approved amounts are only that much. If we don’t accept it, we don’t get anything,” Chan said.
She said it was a delicate situation and the music industry needed government’s support.
“We can’t go too hard on them. So we are caught between a rock and a hard place.”
MACP president Habsah Hassan said at the organisation’s recent annual dinner that it had received RM556,000 from the government for 2014, a paltry sum compared to over RM1 million collected in 1994.
Chan said the government claimed social responsibility in promoting musical works as a reason for its payment policy apart from dropping advertising revenue.
“Our negotiations in the early years led to a healthy percentage payout, but since then RTM has claimed significant revenue drop due to competition from private stations,” said Chan.
“It is unfair for them to pay according to advertising revenue, as they receive funding from the government and that should be taken into account. The standard practice is to look at total revenue of stations, not just based on advertising revenue.”
She said there should be greater awareness on all levels of the government in the use of copyrighted works, especially given the expanding use of musical works.
“The Youth and Sports and Tourism and Culture Ministries are the biggest users when it comes to their ground events, and that’s not even taking into account use by various government departments and agencies.
“They can’t use promoting an artistes’ work as an excuse (not to pay us),” she said.
Chan said they still held on to hope for a gradual increase in royalty payments.
“Ideally we hope to achieve at least 15 per cent through the years.”
The payout from RTM is reportedly below one per cent of its total revenue, making it one of the lowest amounts in the world.
Apart from the unwillingness of the government to re-evaluate royalty payments that did no equal the frequency of music use, MACP is in a quandary as it seeks a renewal of a contract with the authorities for royalty payouts.
MACP signed its first agreement with the government in 1994 and with payments backdated to 1989, the year it opened its doors.
Chan said the initial agreement between MACP and the government was automatically renewed annually until 2007.
“With the emergence of other CMOs, the authorities decided it would be less of a hassle if they just dealt out a single payout to be shared. It became a three-year deal then.
“We renewed it in 2010, and for 2014, we signed a one-year renewal.”
Chan said a meeting earlier this month with ministry representatives settled on a similar royalty payout figure as last year.
“We’re dealing with a new minister, and because there were internal transfers, we did not know who to initiate the agreement with.
“We have since been notified who is the new person in charge and we’re talking things out.”
Chan said MACP was committed to working with the government to solve issues pertaining to royalty collections but it does not discount the possibility of withdrawing use of its members’ works.
“Our members have to give us a mandate,” said Chan.
“Our collection has been badly affected by this, the economic situation and the burden of servicing multiple CMOs.”
Chan said with multiple licensing needs including MACP, PPM, Recording Performers Malaysia Berhad and the much-debated presence of Prism Berhad, many have begun opting for royalty-free music as a means to bypass the hassle and financial constraints.
Ministries, government departments and agencies are among the biggest users of copyrighted works at their ground events.
Collective Management Organisations (CMOs) are unanimous in calling on the government to increase royalty payouts proportionate to the use of copyrighted musical works. Authorised to collect royalty payments on behalf of music authors, composers, lyricists, producers, performing artists and recording labels, they also want the authorities to settle issues with regard to jurisdiction of royalty collection.
