Malaysia’s revised copyright guidelines tighten control over music CMOs to boost transparency and oversight. Excel V. Dyquiangco explores what this means for artists, royalties and industry power dynamics – and how limited consultation is stirring concern across the creative sector. 

The music industry in Malaysia is fast evolving. In a recent development, the Malaysian music industry’s collective management organizations (CMOs) – Music Authors’ Copyright Protection, Public Performance Malaysia and Recording Performers Malaysia – have voiced their apprehension regarding the newly released 2025 Guidelines of Copyright by the Intellectual Property Corporation of Malaysia (MyIPO). The CMOs collectively manage and protect the rights of music creators and copyright holders.  

According to the CMOs, MyIPO issued the guidelines without proper consultation and some provisions exceed the Copyright Act’s scope. They worry the new rules, intended to improve CMO governance, could erode their autonomy and harm creators’ and copyright owners’ interests. The organizations stress the need for stakeholder engagement, cautioning that implementing the guidelines without dialogue could damage the music industry and its workers. 

How do these recent revisions then alter the legal framework or operational landscape for music copyright and licensing in Malaysia? 

“The Guidelines of Copyright (Collective Management Organizations) 2025 should bring about significant changes to Malaysia’s music ecosystem, once they come into force in January 2026,” said Yang Shuh Gooi, a partner at Skrine in Kuala Lumpur.  

He added that the fundamental purpose of this is to form a regulatory framework for the operation of these CMOs in Malaysia. This means that, on a macro level, there will now be an expansion of external oversight into what was previously a largely self-governed industry. The fact that non-compliance with the guidelines could result in revocation of a CMO’s declaration status and that any scope of operation of a CMO – which is inconsistent with the guidelines shall be void – heightens this new tension between regulatory authority and industry self-governance. 

“On an operational level, the guidelines impose several obligations and operational requirements on CMOs that directly affect how CMOs operate and function,” he said. “These include mandatory detailed financial record-keeping (lists of members receiving royalties and the corresponding amounts), formal distribution policies with extensive procedures and mechanisms (procedures for distribution of unidentified and unclaimed royalties), and public disclosure requirements (the distribution policy, administration costs and details of unidentified and unclaimed royalties). Contrast this with the current regime, where all such operational matters are left to each CMO to devise and decide by themselves without consequence.” 

Carmen Wong, a director at Venture Intellectual Property in Kuala Lumpur, agreed, saying: “These revisions aim to align Malaysia’s copyright management practices with international standards but have raised concerns about their implementation and potential overreach.” 

She said that key changes include: 

• Enhanced transparency and accountability. CMOs are now required to maintain detailed financial records, implement comprehensive distribution policies and make extensive public disclosures on their websites.  

• Risk of revocation. Non-compliance with the guidelines could lead to the revocation of a CMO’s declared status, which is critical for their legal operation.  

• Lack of stakeholder consultation. The CMOs have expressed concerns that these guidelines were finalized without adequate consultation, potentially exceeding the scope of the Copyright Act 1987 and infringing on their operational autonomy.  

For Phye Keat Chew, a partner at Raja, Darryl & Loh in Kuala Lumpur: “In terms of the regulation of CMOs the recent guidelines issued by MyIPO alters the legal framework and operational landscape for music copyright and licensing in Malaysia by imposing tighter controls with respect to the corporate governance of CMOs and in that regard, ensuring certain standards are complied with as to how CMOs operate and are managed.”   

Impact of these new revisions 

Given these new changes and revisions, how will they affect Malaysian artists and composers? 

“The guidelines should result in a significant shift towards greater transparency and accountability in the collection and distribution process of royalties in Malaysia,” said Gooi.

“The requirements for detailed distribution policies and public disclosure of unclaimed royalties should, in theory, lead to artists and composers being more properly compensated for their works. Whether this pans out in practice remains to be seen, given that I am aware of complaints by artists in the past about the opaqueness of some CMOs’ distribution and reporting practices. In fact, a claim was recently brought by a local composer to the Copyright Tribunal (the first ever in Malaysia) against one of the major music CMOs over a lack of transparency, timeliness and accuracy in the management of his musical works and royalty payments.” 

He added that an unintended consequence though could be that CMOs will now have to incur substantially more administrative and operational costs to put in place and execute the high-threshold reporting and distribution requirements. The CMOs would likely pass on these costs to their members, thus potentially impacting the royalty payouts.  

“At the very least, the transparency requirements ought to grant artists and composers greater visibility into how their royalties are calculated and distributed. Such knowledge alone can be very empowering, as copyright owners will then be able to more accurately compare and contrast their respective earnings which should give them more leverage in negotiating for higher pay-outs,” he said.   

“However, the current dispute with the CMOs may create a period of uncertainty, if CMOs refuse or are hesitant to roll out any changes to their distribution models,” he added. “This could threaten the stability of the artists’ and composers’ income from royalty payments, especially if MyIPO carries through with the penalty of revoking CMOs’ status for non-compliance.”  

“Perhaps less likely but not out of the realm of possibilities, is we could see new CMOs, which are willing to comply with the guidelines, rising up to compete with, potentially even dethrone, the three major music CMOs.  This increased competition should be healthy for the music industry, so that there isn’t a monopoly over the music licensing market,” he said.  

Wong gave three key points: 

• Delayed royalty payments. Operational disruptions within CMOs due to compliance challenges may lead to delays and complications in royalty distributions to artists or musicians  

• Increased administrative burden. Artists may face additional administrative requirements to ensure compliance with the new guidelines, potentially diverting focus from creative endeavours. 

• Uncertainty and instability. The lack of clarity and potential legal challenges surrounding the guidelines could create an environment of uncertainty, affecting artists’ confidence in the royalty collection and distribution system. 

“Overall, while the intention is to improve transparency and governance, the current approach may inadvertently impact the livelihoods of creators and musicians,” she said. 

Chew said: “On the one hand, one could argue that by having tighter corporate governance controls, artists and composers who are members of the CMOs will be better protected from a corporate governance point of view, and depending on the composition of the members of the CMO and its constitution, in particular, members who may have a relatively smaller stake or interest in the CMO by virtue of perhaps their level of royalty revenue received from the CMO, may find themselves in a better position with regard to how the CMO operates or is managed.” 

He continued: “On the other hand, there could be an argument that such ‘enhanced’ corporate governance standards may have gone too far in imposing controls which are too tight and too detailed such that the CMO does not have sufficient flexibility to operate for the maximum benefit for all members. Probably one could say, for the greater good of all artists and composers who are members of CMOs, this issue would be a question of balancing these two concerns to arrive at an optimal solution to ensure that the public’s use or performance of the relevant works enjoying copyright and/or performers’ rights will benefit both the users as well the foreign, local artists and composers in a fair and equitable manner.”  

Legal protections and strategies 

For independent artists and smaller rights holders to safeguard their earnings and intellectual property, Gooi said that the first and foremost thing small artists and composers should do is to be a member of a CMO.  

“The reality of the music industry is that there are high barriers of entry to mass market distribution, which typically only collecting societies can facilitate. For example, Spotify (the largest way for music to be distributed in today’s online streaming environment) does not pay artists or songwriters directly but through record labels, publishers and CMOs. Accordingly, individual licensing and enforcement of performance can be very impractical,” he said. 

“Nevertheless, what the guidelines and this dispute highlight is that every artist should be more circumspect in their CMO membership,” he added. “They should review their CMOs’ distribution policies and practices with greater scrutiny to ensure compliance with the guidelines, as well as more actively engage with their CMOs to raise dissatisfaction and complaints. Even attending their CMO’s annual general meetings to ask pointed questions about the CMOs’ operational performance can make a huge difference.” 

Another strategy for small artists and composers that they should consider is to make direct licensing available for music users, particularly for more high value uses such as granting mechanical rights and sync rights for cover songs.  

“While no doubt it can be daunting for creatives to delve into legal documentation themselves, this is an avenue worth exploring as a supplementary strategy to gain more control and autonomy over the monetization of your own musical works,” Gooi said.  

Lastly, independent and small artists should band together or engage with associations that advocate for small creators’ interests. Collective advocacy is more effective to pressure CMOs for change. 

Wong said that artists need to understand licensing agreements. “Carefully review and understand the terms of any licensing agreements with CMOs or other entities to ensure fair compensation and rights protection,” she said. 

Another is to maintain accurate records. “Keep detailed records of all works created, including dates, collaborators, and any agreements, to establish clear ownership and facilitate dispute resolution,” she said. 

They can also seek legal advice, she said. “Consult with legal professionals specializing in intellectual property to navigate the complexities of the new guidelines and to protect their interests effectively. And they can engage with CMOs. Participate in CMO meetings and discussions to stay informed about changes and to voice concerns or suggestions regarding rights management.”  

She advised artists to:  

• Understand the amendments on copyright acts and regulations. Staying updated on legislative developments, including the new MyIPO guidelines, helps ensure ongoing compliance and strengthens legal protections. 

• Explore alternative digital platforms. Using music services that offer transparent royalty tracking and distribution can provide artists with more control over their works.  

• Leverage other forms of IP protection. Registering trademarks for studio names, album or song titles and logos can boost brand recognition and help prevent unauthorized commercial use.  

Long-term reforms in the creative industry 

“If the guidelines are implemented as drafted, I foresee meaningful long-term reforms to the Malaysian music licensing ecosystem,” said Gooi. “As I’ve mentioned, there will be increased transparency and accountability in royalty collection and distribution, which ought to bring Malaysia more in line with international practices. This should, overall, be a net benefit for not only copyright owners but even music users and licensees.”  

He added: “Conversely, we may see a rift between CMOs and their respective members if the CMOs’ challenges to guidelines are maintained. If there is a lack of trust and confidence between copyright owners and the CMOs, due to lack of transparency and accountability, licensing and enforcement of musical works may be affected and made more inefficient.” 

“Either way, I believe the current situation will lead to more constructive and open dialogue between regulators and industry players, and between CMOs and their members, about music licensing. The optimist in me anticipates that a middle ground will emerge from all this, where there is increased transparency but less regulatory straightjacketing,” he said.  

“As a copyright owner of an original song I wrote myself, I believe the broader Malaysian creative industry may experience both challenges and opportunities in light of the recent developments,” said Wong. 

She provided several key points. 

• Shift towards digital platforms. In response to concerns over transparency and delays in royalty distributions, artists and rights holders – including independent creators – may increasingly turn to digital music platforms that offer more efficient and transparent rights management and royalty tracking solutions. 

• Potential for reform. The current dispute involving CMOs and the new MyIPO guidelines may serve as a catalyst for much-needed regulatory reform. Ideally, this would lead to a more balanced framework – one that ensures transparency and accountability without undermining the operational independence of CMOs. 

• Impact on international collaboration. “As someone who aspires to collaborate beyond Malaysia, I am concerned that the current uncertainty surrounding rights management could deter international partners from working with Malaysian artists, potentially limiting global exposure and growth opportunities,” Wong said.  

“While the revised guidelines introduced by MyIPO aim to enhance transparency and governance within the copyright management system, their implementation must be handled with greater care to avoid unintended harm to Malaysia’s creative ecosystem,” she noted. “To ensure regulatory changes are fair, effective and aligned with the needs of the industry, it is essential that such guidelines be developed through transparent and inclusive consultations with CMOs. The concerns raised stem from the lack of sufficient opportunity to engage in meaningful dialogue and share industry perspectives. As organizations that follow global best practices and are committed to strengthening governance, CMOs should be actively involved in shaping a regulatory framework that genuinely protects the rights of copyright holders and supports a healthy, transparent and legally sound music copyright ecosystem in Malaysia.”