The Malaysian Insight

MUSIC and performance artistes have been denied their dues while the long-standing problem of royalty payments is now the subject of an anti-corruption probe because too many entities want a finger in the same pie, Malaysian Artistes’ Association (Karyawan) president Freddie Fernandez said.

Different companies have been set up to handle music royalties but end up disputing each other, while the better solution is to have one entity handling collection and payment to artistes, composers and recording companies, he said.

This is what Fernandez believes has happened in the misappropriation of RM30 million in royalties held by companies that have collected them, sometimes resulting in overlapping collections.

“We see that there are many bodies set up to collect royalties but until now artistes have not received anything. This is a big problem for me.

“Recording companies receive royalties, composers, too, but not the artistes,” Fernandez told The Malaysian Insight, adding that this has been a problem for the last 20 years.

In October, Fernandez, who is also a member of the Malaysian Anti-Corruption Commission’s (MACC) consultative and anti-corruption panel, said he would seek the anti-graft agency’s help in probing into the matter.

An attempt was made in 2016 to form only one body to collect and distribute music royalty payments, with the forming of Music Rights Malaysia (MRM).

Before that, there had been up to four different companies collecting royalties for the same music played or performed in public, requiring various users, such as radio stations and shopping malls, to pay four different entities.

When MRM was formed, there were disputes over how to split the royalty payments among the different entities that represented artistes, composers and record companies.

MRM was eventually dissolved in July this year, a move which Fernandez claimed was due to “a conspiracy” by those who wanted to see royalties collected by different companies.

“I think this is a conspiracy related to corruption and abuse of power that should be investigated by government enforcement… that is why I made a report,” he said.

Last month, MACC raided the management offices of Public Performance Malaysia (PPM), Recording Performers’ Malaysia (RPM), Music Authors’ Copyright Protection (MACP) and Performers’ Rights and Interest Society of Malaysia (PRISM).

PRISM had already been dissolved by the court in November 2018 after failing to pay debts also related to music royalty.

On December 9, Deputy Domestic Trade and Consumer Affairs Minister Rosol Wahid said RPM and PRISM would pay outstanding royalties from 2018, which involved an initial payment of a total of almost RM12 million.

Long-term solution

KRU chief executive officer Norman Abdul Halim, however, said the decision to return outstanding royalties is only a temporary solution and would not address the core problem of how best to collect and handle such payments.

“The issue is not the distribution of old royalties but we ought to think about the future and a long-term solution,” he said.

Lyricist Hasmi Hashim, better known as Budi Hekayat, said he is comfortable having the MACP handle royalty collection and payments for copyright owners like him, rather than an entity like MRM which collects for all parties involved in the creation, production, recording and performance of a song.

“Nobody knows who handles the royalty collection under MRM. MACP itself has no problem, and it’s good that things are back to its original state, where companies representing the different parties each take care of their own interests,” he said.

Hasmi’s only suggestion to improve the industry is to relook into the system of tracking songs played, so as to claim royalties, and the rates established by Radio Televisyen Malaysia (RTM), which have not changed for a long time.

Hasmi said payment for the work of creating and performing music should be a guarantee of “pension” to composers, lyricists, singers and other artistes, but that this is not the case at the moment.

He estimates that in the Malaysian music scene, less than 5% of composers and lyricists can depend on royalty payments to survive.

“Big artistes like M. Nasir, lyricist Habsah Hassan or the late Loloq are the ones who can depend completely on royalty money to live. Other veteran artistes have worked for as long as 30 years can’t.

“Look at Bob Lokman, who had to ask for help to have surgery even though he has had many great hits. 

“I think we should set a target for ensuring that at least 15% or 20% of artists can depend on their royalty payment,” Hasmi said.

Bob, who wrote the lyrics of popular songs, such as Isabella by Search and Taman Rashidah Utama by Wings, recently appealed for financial assistance for heart treatment.

Meanwhile, M. Nasir, who is also MACP chairman, said the payment of outstanding royalties to performers is currently in process.

“Actually, there is no issue. I think it was only exaggerated when the MACC came into the picture. People do not know what and why, and assume there is malpractice.

“The problem is really just between two associations only, RPM and PRISM. These were two bodies for musicians and singers but one is already closed (PRISM) and it is causing payment problems.”

Nasir also rejects the claim that problems are caused by having many bodies handling royalty collection. 

The three existing royalty licensing bodies – RPM (recording companies), PPM (singers and performers) and MACP (songwriters, lyricists and musicians) – have different roles, he said.

It is difficult to place the three associations under one body because their roles are different, he added.

“It is not a bad idea (to be in one body) but the fact that each has a different role and rights will cause disputes.” – December 22, 2020.