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LICENSING AND TARIFFS
WHO MUST HAVE
A LICENCE FROM MACP?
MACP's licence is required by any person, firm or organization
who does or causes or authorizes a public performance or a communication
to the public of any musical work controlled by MACP. The expression
"public" is not defined in the Act. However, pursuant
to numerous Court decisions, it is clear that any performance
not given in domestic or quasi-domestic circumstances is a performance
in or to the public.
A licence is needed regardless of the manner of use, be it live or recorded and irrespective of whether a charge for admission to a performance is made. In respect of the public performance right, generally, it is the proprietor of premises at which music is performed or the promoter of the performance, who is responsible for ensuring that prior to any performance in public of MACP's work, the appropriate licence is obtained.
Some common examples of premises requiring licences include: hotels, clubs, restaurants, discotheques, shops, supermarkets, shopping complexes, cinemas, pubs, karaoke lounges, bars, factories, amusement & theme parks, skating rinks, hairdressing salons, dance & aerobic schools, nightclubs, office and factory premises.
WHAT IS THE NATURE OF A LICENCE?
Depending on the nature of the public performance, the licence granted by MACP is a contract, which can either be for a single event of a limited duration or can continue from year to year until terminated by either party. The licence authorizes a licensee to use MACP's repertoire pursuant to the terms of the particular licence granted, in consideration for which the licensee agrees to pay an appropriate fee.
WHAT IS MACP AND WHAT RIGHTS DOES MACP ADMINISTER?
MACP is an Association of authors, composers and publishers of music, who on becoming members, assign to MACP the rights to perform, show or play and communicate to the public all their existing and future works so that a single central authority may exist to whom users (i.e. those wishing to broadcast and perform musical works in public) might apply for a licence. These rights are generally referred to in the expression "performing rights".
MACP is administered by a Board of Directors comprising composer and publisher representatives who are elected to office by members in general meetings. The Board in turn appoints the General Manager who is in charge of the effective management of the Company.
DOES MACP ADMINISTER THE PERFORMING RIGHTS IN FOREIGN WORKS?
International author societies similar to MACP exist in virtually all countries of the world. Under reciprocal agreements with such societies, the members of MACP are thus represented overseas by international societies in the same way that they represent the interests of their own members. In the same way as overseas international author societies represent MACP's members so MACP, by virtue of its reciprocal agreements, also represents the members of overseas societies here in Malaysia. Because of this MACP is able to issue a blanket licence to users in the country who in consequence are able to obtain authority to perform any item of repertoire from the world's catalogue of works.
HOW ARE THE PERFORMING RIGHTS ADMINISTERED BY MACP?
MACP has established a number of licensing schemes covering the various ways in which music is used. The tariffs applicable under these schemes are determined in accordance with the extent of music used and the general principle that the composer is entitled to be associated with the commercial success of his work. Accordingly, the fees established by MACP, in most cases, are based on the percentage of the box-office concept.
DOES MACP CONTROL THE PUBLIC PERFORMANCE IN ALL MUSICAL WORKS?
Under the terms of the assignments from members and affiliated societies, MACP controls the public performance and communication to the public in all works written by members, but it does not administer these rights in the following circumstances unless the broadcast or performance takes place by means of a cinematography film or video tape:
- dramatico-musical works in their entirety;
- excerpts from such parts of any dramatico-musical work as consists of words and music written expressly, therefore, if accompanied by dramatic action, dumb show costume, scenic accessories or other visual representation of the same dramatico-musical work;
- oratorios and large choral works, i.e. those of more than 20 minutes' duration, in their entirety;
- the whole or any part of any music and of any words associated herewith composed or used for a ballet, if accompanied by a visual representation of such ballet or part thereof.
WHERE DOES THE MONEY GO?
As a non-profit organization, all monies collected by MACP are distributed annually, less only a deduction for actual administration costs, to those members and affiliated societies whose works are performed in the year in question.
HOW DOES MACP DISTRIBUTE ITS INCOME?
After deduction of expenses, MACP allocates its income to members in accordance with the frequency of usage in each licensed area. For example, for a radio station, credit points are assigned to each musical work broadcast in accordance with its duration on one hand and its frequency of broadcast on the other.
The total points for the accounting period are then divided by the distributable income from the radio station and a monetary value per point is established. The value per song is then computed and payments subsequently made to the composers, authors and publishers and in the case of a foreign work, sub-publisher. In the same way an analysis is made of television income and general income and payments are made accordingly.
THE MACP TARIFFS
(effective 1 April 2008 to 31 March 2008 subject to yearly increase / decrease in accordance with the Consumer Price Index)
1) Karaokes Lounges, Discotheques, Nightclubs and other multi-entertainment outlets
| Featured Music |
|
|
| First 50 persons |
RM |
2,408.35 |
| Each additional person |
RM |
42.15 |
| |
|
|
| Live and Featured Music |
|
|
| First 50 persons |
RM |
|
| Each additional person |
RM |
|
| |
|
|
| TV Monitor |
|
|
| First unit |
RM |
361.25 |
| Each additional unit |
RM |
|
2) Pubs, Bars and Bistros
| Featured Music |
|
|
| First 50 persons |
RM |
|
| Each additional person |
RM |
21.66 |
| |
|
|
| Live and Featured Music |
|
|
| First 50 persons |
RM |
2,167.51 |
| Each additional person |
RM |
30.11 |
3)
Restaurants and Cafes
| Mechanical Music |
|
|
| First 50 seats |
RM |
867.02 |
| Next 50 seats |
RM |
14.46 per seat |
| Each additional seat |
RM |
9.63 |
| |
|
|
| Live and Mechanical Music |
|
|
| First 50 seats |
RM |
1,685.85 |
| Next 50 seats |
RM |
21.66 per seat |
| Each additional seat |
RM |
14.46 |
4) Juke Box, TV, Videoscreens
| Karaoke Juke Box |
|
|
| Each unit |
RM |
722.49 |
| |
|
|
| Non-Karaoke Juke Box |
|
|
| Each unit |
RM |
361.25 |
|
|
|
| TV Monitor |
|
|
| First unit |
RM |
240.82 |
| Each additional unit |
RM |
|
5) Hotels, Service Apartments, Private Clubs, Medical Centres, Hospitals and Clinics
| Each Room |
RM |
|
| Lobby/Reception/Nurse Station |
RM |
240.82 |
| * See Category 1, 2, 3 and 4 for other outlets within the establishments |
6) Offices, Factory Premises and Banks
| First 20 persons |
RM |
240.82 |
| Each additional person thereafter |
RM |
6.03 |
7) Cinemas
| 0.20% of Gross Receipts less Entertainment Tax |
|
|
8) Buses and Coaches
| Mechanical Music |
|
|
| Each Bus/Coach |
RM |
240.82 |
| |
|
|
| Video-On-Demand Screen |
|
|
| Each seat with video-on demand screen (additional) |
RM |
14.46 |
9) Supermarkets, Departmental Stores, Concourses and Arcades of Public Buildings and Shopping Complexes, Retail Shops within Complexes, Slimming & Beauty Centres, Hair Saloons, Individual Shops, Showrooms, Bowling Centres, Gymnasiums and Fitness Clubs (excluding dance and aerobic schools)
| Minimum Fee |
|
|
|
RM |
240.82 |
| 1 st |
2,000 sq ft |
RM |
0.179 |
RM |
358.00 |
| Next |
2,000 sq ft |
RM |
0.168 |
RM |
336.00 |
| Next |
8,000 sq ft |
RM |
0.155 |
RM |
1,240.00 |
| Next |
12,000 sq ft |
RM |
0.134 |
RM |
1,608.00 |
| Next |
24,000 sq ft |
RM |
0.120 |
RM |
2,880.00 |
| Next |
52,000 sq ft |
RM |
0.096 |
RM |
4,992.00 |
| Next |
55,000 sq ft |
RM |
0.049 |
RM |
|
| Each |
additional sq ft thereafter |
RM |
0.035 |
10) Amusement Centres, Indoor and Outdoor Theme Parks
| Minimum Fee |
|
|
|
RM |
481.68 |
| 1 st |
2,000 sq ft |
RM |
0.481 |
RM |
962.00 |
| Next |
8,000 sq ft |
RM |
0.360 |
RM |
|
| Next |
10,000 sq ft |
RM |
0.241 |
RM |
2,410.00 |
| Each |
additional sq ft thereafter
|
RM |
0.120 |
11) Roller and Ice Skating Rinks
| 1 st |
1,000 sq ft |
RM |
0.722 |
RM |
722.00 |
| Each |
additional sq ft thereafter
|
RM |
0.603 |
12) Dance and Aerobic Schools
| Minimum Fee |
|
|
|
RM |
240.82 |
| 1 st |
1,000 sq ft |
RM |
0.963 |
RM |
963.00 |
| Each |
additional sq ft thereafter
|
RM |
0.844 |
13) Music-On-Hold over Telephones
| First 3 lines |
RM 180.62 |
| 4 – 6 lines |
RM 48.17 per additional line |
| 7 – 15 lines |
RM 24.08 per additional line |
| Each additional line thereafter |
RM 12.04 |
14) Casual Public Performances (including exhibitions) at concourses and arcades of Complexes
Entertainment with Performers/DJ/Compere RM 300.00 per day
15) Ticket Selling Events such as Concerts, Circus and Funfairs
On Actual Gross Box Office receipts 2.0%
On the Nominal Value for Complimentary Tickets 1.0%
Minimum Fee RM 500.00
16) One-Off Musical Events held at Office and Factory Premises, Dinner and Dances, Luncheon/Dinner Shows, Graduation Balls, Product Launching, Year End Parties, Family Days, Free Concerts, Fashion Shows and Beauty Pageants
Expenditure on Provision of Music 15%
Minimum Fee RM 400.00
Maximum Fee RM 10,000.00
17) Exhibitions, Seminars and Conferences
Duration Low Music Density High Music Density
1 – 2 days RM 200.00 per day RM 300.00 per day
3 – 6 days RM 150.00 per day RM 250.00 per day
7 – 14 days RM 100.00 per day RM 200.00 per day
15 days and more RM 75.00 per day RM 175.00 per day
18) Music Retailers/Record Shops
Each outlet RM 120.42
19) Aircrafts
Rate per 500 passenger hours RM 39.73
Click here
to proceed to the Licence Application Forms.
For licensing inquiries or for Tariffs not listed above, please contact Licensing Department of MACP |
