CMO Operational Guidelines will be established next year – Armizan

KUALA LUMPUR – Operating Guidelines for Collective Management Organizations (CMOs) will be created next year as an improvement measure regarding royalty claims, especially among local art activists.

Minister of Domestic Trade and Cost of Living (KPDN), Datuk Armizan Mohd Ali said that the need needs to be established to monitor and take comprehensive action.

“These guidelines are very important in the event of a violation of the conditions for the establishment of a CMO under the Copyright Act 1987. We are finalizing it.

“God willing, in December (this year) it will be completed and the KPDN will announce it to everyone and we hope to be able to enforce it in April 2025,” he said in a press conference.

He said this after officiating the MADANI Love Touch Ceremony here today.

Armizan added, it is also a short-term step and at the same time, in planning to create a single CMO to make it easier for artists to work together.

He said a total of RM2,040,846.84 in royalties from members of the Performers Rights and Interest Society of Malaysia (PRISM) was available to be distributed to 495 eligible members based on the use of songs in 2018.

He said out of that amount, the balance of RM339,058.57 has yet to be claimed by 164 artists.

“Out of 164 artists, a total of 25 have submitted information to the Ministry and the Malaysian Intellectual Property Corporation (MyIPO) for the process of claiming and paying royalties,” he said.

According to Armizan KPDN and MyIPO received various complaints from various parties including artists, owners and users of music copyright works.

He said among them were the distribution of royalties which were considered too low, the governance of the CMO, the high and non-uniform tariff rates set by the CMO.

“There is also a recommendation that a single collection body be created instead of a ready implementation with the existence of several CMOs.

“The proposal to re-establish 1CMOs was also carefully considered taking into account various factors including the views of art activists and users of music copyright works as well as international practices,” he said.