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Implementing
Copyright Collective Management:
  A Comparison of Malaysia and
            Thailand



                   Supatchara Distabanjong
                    สุพชรา ดิษฐบรรจง
                       ั
What is Collective Management?
     • Collective Management
                 pool rights                     license
Composers,                      Collective                 Many
Right                           Management                 right
owners            $ royalties   Organization       $       users
                                (CMO)
 •    CMO is NFP organization:
      - License works for users (monitor use & collect royalties)
      - Distribute royalties to members
CMOs in Music Industry

                      •   CMO for musical works ( or
                          Authors & composers’ Society)
                      •   CMO for recording companies
                      •   CMO for singers and musicians

“Communication to the public right (public performance right or
performing right)”
Why the research is important?

• Copyright collective management is important in music
  industry
• Collective management Organization (CMO) is essential in
  representing composers demanding royalties
• Composers in some Asian countries do not appreciate full
  benefit of collective managements
• Few studies of how the collective management is developed
  in Asia.
• None compare between success and problematic cases in the
  same region
Introduction
• Macro factors comparison between
  Malaysia and Thailand
  – Language
  – Legal system
  – Copyright Law
  – Provision of Collective management
   “licensing body” definition in Malaysia Copyright law
Malaysian Authors
                                                                                        Music Copyright (Thailand): MCT
       Copyright Protection :MACP
                                                    Currency: RM
                                                                                                                       Currency: Baht
20,000,000                                                                 20,000,000
18,000,000                                                                 18,000,000
16,000,000                                                                 16,000,000
14,000,000                                                                 14,000,000
12,000,000                                                                 12,000,000
10,000,000                                                                 10,000,000
 8,000,000                                                                  8,000,000
 6,000,000                                                                  6,000,000
 4,000,000                                                                  4,000,000
 2,000,000                                                                  2,000,000
         0                                                                          0
             '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04                 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05

                      Revenue                   Expenditure                                     Revenue       Expenditure
Aim & Scope
• Aim : to provide a guideline of collective
         management for policy maker so that
         Thai composers properly receive
         royalties locally and internationally

• Scope: focus on collective management of
  composers
Research Question:

•   How can the collective managements in Thailand be
    implemented successfully so that Thai composers
    can receive royalties locally and internationally?
    - What are indicators for success of collective
         management?
    - How can Thailand implement collective
      management successfully?
Methodology

Methodology: Case-Study

 •   “Convergent Interview” of nine interviewees:
       - 4 from executives of MACP
       - 4 from executive of MCT
       - 1 from international expert from CISAC
Operationalized Framework for
         Success of Collective Management

• Business Perspectives:
  – Revenue
  – Cost
  – Opportunity lose
  – Opportunity gain
• Law Perspectives:
  – Protect composers’ right
  – Lifting the real practice to international standard
Indicators of
                 Collective Management’s Success
The success of collective management is indicated
by the collective management organization (CMO) that:
• represents almost all international and local
    repertoire of a copyright works,
•   can collect the reasonable royalties at reasonable
    costs, and
•   is able to transparently distribute royalties to
    creators/owners within its first two years of licensing
    activities.
The Indicator for Success of CMO
            in Collecting Royalties in Thailand
                         Compare to Malaysia
• Government
  – Build understanding of international practice
  – Correct interpretation about international practice

• Thai recording companies
  – join CMO as music publishers
  – Need to be internationalize and be competitive
    in the region
  – Need to protect right internationally
  – Build good image and Social responsibility
The Indicator for Success of CMO
           in Collecting Royalties in Thailand
                        Compare to Malaysia

• CMO
 – Need clear legal identity
 – Reduce conflict of Interest perceived by recording
   companies
 – Build good alignment with recording companies,
   CMO, and composers
 – Build of awareness campaign
The Indicator for Success of CMO
            in Collecting Royalties in Thailand
                         Compare to Malaysia
• Users
  – Build understanding
  – Limit selective channel for Thai songs


• Thai composers:
  – Build understanding
  – Build solidarity to increase negotiation power with
    recording companies
Conclusion

• The Policy maker should align and balance
  all stakeholders within the operationalized
  framework
• Mutual benefit of composers, recording
  companies, and CMO should be enhanced
• Implementation should be at the macro level
  both locally and internationally
Implications:
        1.National Level
       1.1 Provide guideline regarding law,
       regulation and administration for policy
       maker
       1.2 Build national competitiveness by
       recognizing composers’ right up to
2. Industrial Level
           international practice
2.1 Internationalized music industry by enhancing C

2.2 Good governance of CMO by positioning NFP
            3. Individual Level
            3.1 Less users’ infringement by
            obtaining CMO license
            3.2 Fair incentive to composers
Future Research

•   To what extent the Government should
    control/supervise CMO
•   Culture involved??
•   CMO of performers?
Implementing Copyright Collective Management: Malaysia and Thailand Comparison

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Implementing Copyright Collective Management: Malaysia and Thailand Comparison

  • 1. Implementing Copyright Collective Management: A Comparison of Malaysia and Thailand Supatchara Distabanjong สุพชรา ดิษฐบรรจง ั
  • 2. What is Collective Management? • Collective Management pool rights license Composers, Collective Many Right Management right owners $ royalties Organization $ users (CMO) • CMO is NFP organization: - License works for users (monitor use & collect royalties) - Distribute royalties to members
  • 3. CMOs in Music Industry • CMO for musical works ( or Authors & composers’ Society) • CMO for recording companies • CMO for singers and musicians “Communication to the public right (public performance right or performing right)”
  • 4. Why the research is important? • Copyright collective management is important in music industry • Collective management Organization (CMO) is essential in representing composers demanding royalties • Composers in some Asian countries do not appreciate full benefit of collective managements • Few studies of how the collective management is developed in Asia. • None compare between success and problematic cases in the same region
  • 5. Introduction • Macro factors comparison between Malaysia and Thailand – Language – Legal system – Copyright Law – Provision of Collective management “licensing body” definition in Malaysia Copyright law
  • 6. Malaysian Authors Music Copyright (Thailand): MCT Copyright Protection :MACP Currency: RM Currency: Baht 20,000,000 20,000,000 18,000,000 18,000,000 16,000,000 16,000,000 14,000,000 14,000,000 12,000,000 12,000,000 10,000,000 10,000,000 8,000,000 8,000,000 6,000,000 6,000,000 4,000,000 4,000,000 2,000,000 2,000,000 0 0 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 Revenue Expenditure Revenue Expenditure
  • 7. Aim & Scope • Aim : to provide a guideline of collective management for policy maker so that Thai composers properly receive royalties locally and internationally • Scope: focus on collective management of composers
  • 8. Research Question: • How can the collective managements in Thailand be implemented successfully so that Thai composers can receive royalties locally and internationally? - What are indicators for success of collective management? - How can Thailand implement collective management successfully?
  • 9. Methodology Methodology: Case-Study • “Convergent Interview” of nine interviewees: - 4 from executives of MACP - 4 from executive of MCT - 1 from international expert from CISAC
  • 10. Operationalized Framework for Success of Collective Management • Business Perspectives: – Revenue – Cost – Opportunity lose – Opportunity gain • Law Perspectives: – Protect composers’ right – Lifting the real practice to international standard
  • 11. Indicators of Collective Management’s Success The success of collective management is indicated by the collective management organization (CMO) that: • represents almost all international and local repertoire of a copyright works, • can collect the reasonable royalties at reasonable costs, and • is able to transparently distribute royalties to creators/owners within its first two years of licensing activities.
  • 12. The Indicator for Success of CMO in Collecting Royalties in Thailand Compare to Malaysia • Government – Build understanding of international practice – Correct interpretation about international practice • Thai recording companies – join CMO as music publishers – Need to be internationalize and be competitive in the region – Need to protect right internationally – Build good image and Social responsibility
  • 13. The Indicator for Success of CMO in Collecting Royalties in Thailand Compare to Malaysia • CMO – Need clear legal identity – Reduce conflict of Interest perceived by recording companies – Build good alignment with recording companies, CMO, and composers – Build of awareness campaign
  • 14. The Indicator for Success of CMO in Collecting Royalties in Thailand Compare to Malaysia • Users – Build understanding – Limit selective channel for Thai songs • Thai composers: – Build understanding – Build solidarity to increase negotiation power with recording companies
  • 15. Conclusion • The Policy maker should align and balance all stakeholders within the operationalized framework • Mutual benefit of composers, recording companies, and CMO should be enhanced • Implementation should be at the macro level both locally and internationally
  • 16. Implications: 1.National Level 1.1 Provide guideline regarding law, regulation and administration for policy maker 1.2 Build national competitiveness by recognizing composers’ right up to 2. Industrial Level international practice 2.1 Internationalized music industry by enhancing C 2.2 Good governance of CMO by positioning NFP 3. Individual Level 3.1 Less users’ infringement by obtaining CMO license 3.2 Fair incentive to composers
  • 17. Future Research • To what extent the Government should control/supervise CMO • Culture involved?? • CMO of performers?