Disclaimer: This article is for general informational purposes only and is not meant to be used or construed as legal advice in any manner whatsoever. All articles have been scrutinised by a practising lawyer from Tristan & Partners to ensure accuracy.
When it comes to restaurants, it’s often more than just about the food. It is the experience as a whole that crafts that picture perfect scene that has you coming back for more.
Service, atmosphere, and interior design all go without saying, but another crucial aspect is, of course, music.
But playing music for non-personal uses, or any media for that matter, is always a touchy subject.
It’s not uncommon to see YouTubers, for instance, have videos taken down because of this exact issue. Be it using an unlicensed song as their background music or a clip from a show they like to emphasise their point, if they get three strikes, they’re out.
Even celebrity artists are not exempt from the wrath of the music labels that they are affiliated with.
But if that’s the case, is it legal for restaurants in Malaysia, or any business for that matter, to play whatever they want on their premises?
The short answer, as you could probably guess, is a resounding “no.”
The “right” in “copyright”
When it comes to licensing media such as literary works, musical works, artistic works, films, sound recordings, broadcasts, and derivative works, the key word that it always cycles back to is “copyright.”
According to the Intellectual Property Corporation of Malaysia (MyIPO), copyright is the “exclusive right to control creative works created by the author, copyright owner and performer for a specific period governed under the Copyright Act 1987.”
“Infringing on copyright” would thus mean to use copyrighted works that fall under the Copyright Act without the consent or permission from its respective copyright holder.
This includes playing copyrighted work publicly, as noted by Public Performance Malaysia (PPM).
Licences to legally use copyrighted works in Malaysia can be obtained from Collective Management Organisations (CMOs), who are given the authority by copyright owners to administer the rights to use their respective works.
CMOs are also responsible for collecting the respective royalty fees that come with the usage and licence of each copyrighted work. This can range anywhere between 5% to 15% of net sales depending on the type of IP, market demand, and negotiation, as noted by Bestar.
MyIPO lists the following CMOs that individuals can apply for licences from:
| Collective Management Organisation | Represented Parties | Media Type |
| Music Authors Copyright Protection Berhad (MACP) | Songwriters, composers, and music publishers | Musical/sound recording works |
| Public Performance Malaysia Berhad (PPM) | Recording companies | |
| Recording Performers Malaysia Berhad (RPM) | Recording performers | |
| Music Right (Sarawak) Berhad (MRSB) | Recording companies, songwriters, composers, music publishers, and recording performers for ethnic songs in Sarawak | |
| Music Rights Sabah Berhad (MRS) | Recording companies, songwriters, composers, music publishers, and recording performers for ethnic songs in Sabah | |
| Malaysia Reprographic Rights Centre Berhad (MARC) | Writers, publishers, and authors in the publishing industry | Literary and artistic works |
Note that a licence from the MACP, PPM, and RPM each needs to be obtained in order to legally play music on business premises. This is because they each collect royalties for different parties.
“Your subscription with these platforms (Astro, Spotify, YouTube Music) and similar services only allows you to use them in your personal capacity,” states MACP on their FAQ page.
“An MACPLicense allows you to play those subscription music in a public setting and the fees vary depending on your usage.”
One closed eye
All that being said, there do exist special circumstances where copyright laws can be bypassed, allowing for the usage of copyrighted works without a licence.
Among many others, Section 13(2)(a) of the Copyright Act 1987 specifically highlights purposes of research, private study, criticism, review or the reporting of news or current events.
The “incidental inclusion of a work in an artistic work, sound recording, film or broadcast” will likewise also not be punished if it’s for charitable or educational purposes.
On a related note, the punishment for breaking copyright law in Malaysia is either a fine, imprisonment, or both where the punishment to be meted is dependent on the type of offence committed.
As per Section 41 of the Copyright Act 1987, playing music without a proper licence in public specifically will net you a fine not exceeding RM10,000 for each infringing copy, imprisonment for a term not exceeding five years, or both.
Subsequent offences will cost a fine not exceeding RM20,000 for each infringing copy, imprisonment for a term not exceeding 10 years, or both.
Flying too close to the sun
So then, you might be wondering, how do businesses get away with breaking copyright law?
There are plenty with speakers and TV screens livening up their premises with a touch of unpaid content, after all.
Well, to put it simply, it’s not that they are allowed to. They’re playing with fire.
And some have gotten burnt for pushing their luck too far.
As reported by Astro themselves, the company won a copyright infringement case on November 27, 2024.
The lawsuit was filed against Selangor-based bar and restaurant Brew Nation for reportedly streaming “exclusive live sports content, including football matches, to attract customers” as per the report.
The High Court of Malaya ordered the business to pay a fine of RM75,000 as punishment, and Astro was awarded an additional RM5,000 in legal costs.
Something not being heavily enforced doesn’t make it legal by default. That, perhaps, is the greatest takeaway from all this, and why it is important beyond an ethical standpoint to respect intellectual property rights and pay your dues.
- Read other articles we’ve written about Malaysian startups here.
Featured Image Credit: Image used under licence from Shutterstock
