KUALA LUMPUR, 13 October 2026 – The Ministry of Domestic Trade and Cost of Living (KPDN), through the Intellectual Property Corporation of Malaysia (MyIPO), has reaffirmed its commitment to strengthening transparency, accountability and governance of Collective Management Organisations (CMOs) in the collection, calculation and distribution of royalties, even as the related guidelines face a legal challenge.
Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali said this when answering an oral question from Rasah MP Cha Kee Chin in the Dewan Rakyat today.
He explained that KPDN, through MyIPO, has regulated CMOs since 2012 under the declaration framework of Section 27A of the Copyright Act 1987 (Act 332) and the Copyright (Collective Management Organisation) Regulations 2012.
To strengthen the principles of transparency and accountability, several enhancements have been introduced. These include the introduction of Section 59C in 2019, which provides a dispute resolution channel for royalty distribution through the Copyright Tribunal, subject to the agreement of both parties.
In 2022, the renewal of declaration under Section 27A(3A) was made mandatory, requiring CMOs to submit compliance documents every two years. In the same year, Section 27M was introduced, empowering the Copyright Controller to issue guidelines relating to the declaration and operations of CMOs.
The guidelines were developed following a series of engagements with stakeholders including KPDN, MyIPO, the Ministry of Communications, the Malaysia Competition Commission (MyCC), the Malaysian Artistes Association (KARYAWAN), academics and CMO management from 2023 to 2024. Areas improved include the management of financial records and tariffs, procedures for appointing licensing agents, and voting rights at annual general meetings.
MyIPO officially published the guidelines on 17 January 2025, with the intention of full enforcement on 17 January 2026. However, enforcement has yet to take place following objections and a judicial review filed by Music Authors Copyright Protection (MACP), Public Performance Malaysia (PPM) and Recording Performers Malaysia (RPM) on 16 April 2025. The substantive hearing is scheduled for 24 November 2026.
“KPDN views the enforcement of these guidelines as critical to strengthening the transparency of CMO governance, including in the calculation of reasonable tariff rates, licensing collection and royalty distribution. Therefore, KPDN will continue to defend these guidelines through the appropriate legal channels,” Armizan said.
Ready to study amendments for greater powers
Responding to a supplementary question from Cha Kee Chin, who proposed amending Act 332 to give MyIPO greater authority — particularly to protect consumers from collection formulas deemed disadvantageous to shops, premises, concert organisers or banquets — Armizan said the government welcomed the suggestion and was prepared to study the need for further amendments.
He stressed, however, that the 2022 amendments, especially Section 27M, had already conferred significant powers. Under the guidelines issued, paragraph 19.3(3) requires any review or amendment of tariff rates to be notified and approved by the Copyright Controller, with reference to a committee involving various stakeholders.
Copyright protection in the AI era
In a supplementary question from the Padang Terap MP regarding the use of copyrighted works to train artificial intelligence (AI), Armizan explained that under the existing Copyright Act, rights holders may utilise the Copyright Tribunal for civil action under Section 36 or criminal action through the KPDN Enforcement Division under Section 41.
He added that the ministry is currently conducting engagement sessions to examine the spaces and emerging issues related to the advancement of AI technology, in order to protect both copyright holders and consumers.
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