A long and internationally established solution to this is by collective management which is the exercise of copyright by organisation acting collectively in the interests and on behalf of the owners of rights.  Collecting Societies accordingly form an important link between rights owners and users of copyrighted music.The Government of Malaysia recognises these Collecting Societies as legally constituted Collecting Societies in Malaysia.

Public performance is the playing of music in public.  If one plays music in a public area or business premises where it can be heard by employees or members of the public, then it becomes a public performance, in which case one has to obtain a prior licence from the collecting societies.

If one has obtained a public performance licence, he has the right to publicly perform music contained in various legal original formats such as Cassette, CD, VCD, DVD and computer Hard Disc.  The licence also covers the playing of music which is broadcast through Radio and TV.

The price one pays for a Cassette or CD is for his private & domestic use only; it does not cover a public performance licence.  Therefore if he wants to use it in a public place or business premises he has to obtain a licence from the respective Collecting Societies.The music contained in the broadcasts is protected by copyright.  As such, playing of broadcast programmes in one’s commercial premises for his employees or members of the public will require a licence.

Use of music is strictly voluntarily and not compulsory.  The law does not force anyone to play music in public.  However when music is played in public, the users have to pay royalty to the Collecting Societies / copyright owners. The law does not specify the purpose of playing music.  As long as it is classified as public performance, one has to pay royalties.  It follows that businesses which are not making money out of playing music (e.g. barber shops, saloons, boutiques or coffee shops) must pay royalties to the Collecting Societies / copyright owners.

As copyright is a private property right, the copyright owners will determine their own rates.  In determining the rates, the copyright owners will normally see how essential music is to users.  For example, where music is the prime revenue generator for users as in the case of Karaoke or Disco outlets, the rates are naturally higher.  If usage of music is optional as in the case of Restaurants or Hair Salons, the rates will be lower.

The Collecting Societies give special volume based discounts when negotiated by trade associations on behalf of their members, for example, Karaoke, hotel and shopping complex associations.   Many users belonging to these trade associations have been enjoying discounted tariffs since 1990.Copyright is a private right belonging to the right holders.  It is the right holders who decide the rates.  Governments as a matter of principle respect private  rights and do not  interfere by fixing the rates.

In Malaysia, the music rights owners have formed the following Collecting Societies:

Name:   Public Performance Malaysia Sdn Bhd [“PPM”] (173608-V) 
Year of Incorporation:  1988 
Members: Recording Companies
Works Represented: Sound, Music Video and Karaoke Recordings
Website: www.ppm.org.my

Name: Music Authors Copyright Protection Bhd  [“MACP”] (186403-X)
Year of Incorporation:  1989   
Members: Composers, Lyricists and Publishers
Works Represented: Musical Works
Website: www.macp.com.my

Name: Performers and Artistes Rights (M) Sdn Bhd[“PRISM”](542747M)
Year of Incorporation: 2001 
Members: Recording Artistes and Musicians
Works Represented: Performances embodied in Sound Recordings
Website: www.prism.org.my