Malaysian Music Industry in Turmoil Over New Royalty Guidelines

In a dramatic escalation of tensions within Malaysia’s music industry, three prominent royalty collection bodies, known as Collective Management Organisations (CMOs), have launched a legal challenge against the government over newly introduced guidelines. Announced on January 17, 2025, by the Intellectual Property Corporation of Malaysia (MyIPO) and backed by the Ministry of Domestic Trade and Cost of Living, these guidelines aim to reform the governance and transparency of CMOs. However, the decision by Music Authors’ Copyright Protection (MACP), Recording Performers Malaysia (RPM), and Public Performance Malaysia (PPM) to take the matter to court has sparked confusion and frustration among musicians and industry stakeholders, many of whom claim they were not consulted on the legal action.

Origins of the Dispute

The 2025 CMO Guidelines, unveiled after extensive discussions between MyIPO and various stakeholders since 2023, were intended to address long-standing grievances within the music industry. According to the Minister of Domestic Trade and Cost of Living, Datuk Armizan Mohd Ali, who publicly endorsed the guidelines on March 17, 2025, the reforms focus on improving voting rights for music creators, ensuring fair treatment, and enhancing accountability within CMOs. The guidelines were seen by many as a response to years of complaints from artists and music users about opaque practices and unilateral decision-making by CMO managements.

Yet, the leadership of MACP, RPM, and PPM—chaired by industry icons Datuk M. Nasir, Datuk Sheila Majid, and Rosmin Hashim, respectively—has rejected the guidelines. In a joint statement, the three organizations argued that the reforms undermine their autonomy and fail to align with existing copyright laws. They further claimed that the guidelines were drafted without adequate consultation with copyright holders, potentially harming the very artists they represent. This disagreement has now culminated in a court case, set for mention on July 1, 2025, at the Kuala Lumpur Courts in Jalan Duta.

Artists Voice Discontent

The legal action has not only deepened divisions within the industry but also exposed a significant rift between CMO leadership and their members. At a press conference hosted by the Malaysian Artistes’ Association (Karyawan) in Kuala Lumpur on June 30, 2025, numerous musicians, composers, and industry professionals expressed shock and dismay at the decision to sue the government. Karyawan President Datuk Freddie Fernandez praised the new guidelines as “excellent,” emphasizing their role in addressing systemic issues faced by music creators.

“The majority of the members of these three organizations are extremely satisfied with the guidelines and grateful to the government for listening to their grievances” said Fernandez. He questioned the rationale behind the legal challenge, especially given the widespread support for the reforms among artists. Fernandez also highlighted that many of the approximately 8,000 artistes and composers affiliated with the CMOs were unaware of the decision to pursue litigation, raising concerns about transparency within the organizations themselves.

A Call for Transparency and Accountability

Individual artists echoed Fernandez’s sentiments, underscoring the need for the very reforms the CMOs are opposing. Ad Samad, a renowned Malaysian composer and lyricist, expressed deep frustration over the lack of communication from CMO leadership. “We from the three bodies were just not told about this decision to take the government to court” said Samad. He argued that the guidelines are essential to prevent such unilateral actions and to ensure artists have a voice in how CMOs operate. Samad, along with other musicians present at the Karyawan event, signed a memorandum in support of the guidelines, signaling a groundswell of backing for the government’s position.

Similarly, composer Zaim Zaidee pointed to decades of unresolved issues concerning artists’ rights, which he believes the 2025 guidelines will finally address. “This decision by the CMOs to take the government to court does not make sense, and on top of that, it was done without the knowledge of the members” said Zaidee. Music director Cheb Ali, a member of both MACP and RPM, added to the chorus of criticism, noting that attempts to seek clarification at a recent MACP annual general meeting were rebuffed with the excuse of ongoing legal proceedings. “Ultimately, the new MyIPO guidelines are the best for all those in the music industry” said Ali.

Broader Implications for Copyright Governance

The dispute over the 2025 CMO Guidelines raises critical questions about the balance of power within Malaysia’s music industry and the role of government in regulating copyright management. CMOs play a vital function in collecting and distributing royalties to artists, ensuring that creators are compensated for the use of their work. However, allegations of mismanagement and lack of transparency have long plagued these organizations, not just in Malaysia but in many countries worldwide. The Malaysian government’s push for reform, through MyIPO, appears to be an attempt to align local practices with international standards of governance and accountability.

If the court rules in favor of the CMOs, it could delay or derail these reforms, potentially perpetuating the issues that artists have complained about for years. Conversely, a ruling supporting the government could set a precedent for stronger oversight of CMOs, possibly inspiring similar reforms in other sectors or regions. The outcome of the case may also influence how copyright holders engage with regulatory bodies in the future, shaping the relationship between creative industries and policymakers.

Economic Stakes for Artists

Beyond the legal and governance issues, the economic implications of this dispute are significant for Malaysia’s music industry, which contributes to the country’s cultural economy. Royalties are a lifeline for many artists, particularly independent creators who rely on CMO distributions to sustain their careers. Delays or disruptions caused by legal battles could impact their livelihoods, especially if royalty payments are affected during the litigation process. While exact figures for royalty collections are not publicly available, industry estimates suggest that millions of Malaysian Ringgit—potentially equivalent to hundreds of thousands of US dollars—are managed by CMOs annually (based on exchange rates as of the upload date, approximately 4.2 MYR to 1 USD, or roughly US$238,000 for 1 million MYR).

For now, the uncertainty surrounding the guidelines has left many artists in limbo, unsure of how their rights and earnings will be protected. The lack of consultation by CMO leadership in initiating the lawsuit has further eroded trust, with some musicians calling for internal reforms within the organizations themselves. As one artist at the Karyawan press conference noted, the irony is palpable: organizations meant to safeguard artists’ interests are now perceived by many as acting against them.

Public and Industry Sentiment

The public reaction to this controversy, as gauged through social media platforms and industry gatherings, reflects a broader frustration with institutional opacity in Malaysia’s creative sectors. Many artists and fans have expressed support for the government’s guidelines, viewing them as a long-overdue step toward fairness. However, there are also voices cautioning against excessive state intervention, warning that it could stifle the independence of cultural organizations if not carefully managed.

The involvement of high-profile figures like Datuk M. Nasir and Datuk Sheila Majid as CMO chairpersons adds a layer of complexity to the debate. Their stature in the industry lends weight to the CMOs’ position, but it also risks alienating rank-and-file members who feel sidelined by the decision-making process. How this tension resolves—both in the courtroom and within the industry—will likely have lasting repercussions for how Malaysia’s music sector navigates the intersection of creativity, commerce, and regulation.

Looking Ahead

As the legal battle over the 2025 CMO Guidelines unfolds, the Malaysian music industry stands at a crossroads. The outcome of the July 1 court mention, and the subsequent proceedings, will determine not only the fate of these specific reforms but also the broader framework for copyright management in the country. For now, artists and stakeholders are left grappling with uncertainty, hoping for a resolution that prioritizes their rights and interests over institutional conflicts.

Amid the discord, the voices of musicians like Ad Samad, Zaim Zaidee, and Cheb Ali serve as a reminder of the human stakes at play. Their call for transparency, accountability, and fairness resonates beyond the courtroom, reflecting a collective desire for a music industry that truly serves its creators. Whether through judicial ruling or renewed dialogue, the path forward remains uncertain—but the need for change is undeniable.