Radio remains a popular medium in Malaysia, with a 97.2% reach in Peninsular Malaysia, entertaining millions through stations like Hitz FM, ERA, and BFM 89.9. For businesses, playing radio in public spaces like cafes, restaurants, or offices can enhance the customer experience and create a vibrant atmosphere. However, a common question arises: does playing radio in Malaysia, particularly in commercial settings, require a license? This blog post explores the legal requirements for playing radio in Malaysia, focusing on copyright laws, the role of licensing bodies, and exemptions, to help business owners and individuals stay compliant while enjoying radio broadcasts.
Quick Answer
Yes, playing radio in a commercial setting in Malaysia typically requires a music license from organizations like Music Rights Malaysia (MRM), which represents Public Performance Malaysia (PPM), Music Authors’ Copyright Protection (MACP), and Recording Performers Malaysia (RPM). These licenses ensure that copyright holders, such as songwriters and recording artists, are compensated for public performances under the Copyright Act 1987. However, playing radio at home for personal use does not require a license.
Understanding Music Licensing in Malaysia
The Copyright Act 1987
In Malaysia, the Copyright Act 1987 protects the rights of music creators, including songwriters, composers, performers, and record producers. Playing copyrighted music in public—defined as any setting beyond personal, domestic use, such as in businesses, restaurants, or events—requires permission from copyright holders. This includes music played via radio broadcasts, as radio stations air copyrighted songs that fall under this protection. The Act ensures that creators receive fair compensation through licensing fees, which are collected and distributed as royalties.
Role of Music Licensing Bodies
To simplify the process of obtaining permissions, Malaysia has established collective management organizations (CMOs) under the Intellectual Property Corporation of Malaysia (MyIPO). Music Rights Malaysia (MRM), a one-stop licensing body, consolidates the efforts of three key organizations:
- Music Authors’ Copyright Protection (MACP): Represents songwriters, composers, and publishers, licensing the public performance of musical compositions and lyrics.
- Public Performance Malaysia (PPM): Represents record producers, licensing the public performance of sound recordings, including those played on radio.
- Recording Performers Malaysia (RPM): Protects performing artists, ensuring they receive royalties for public performances of their recorded works.
Additionally, Performers Rights and Interest Society of Malaysia (PRISM) may also require licensing for certain performers’ rights. A business playing radio music must obtain licenses from these bodies to comply with the law, as radio broadcasts include copyrighted material from multiple rights holders.
When Is a License Required for Playing Radio?
Commercial Settings
Playing radio in a business setting, such as a cafe, retail store, gym, or office, is considered a public performance under the Copyright Act 1987. This applies whether the radio is played through a traditional FM receiver, a smart speaker, or an online stream of a licensed radio station. Even if a business subscribes to a radio station or pays for a TV license, a separate music license from MRM is required to cover the public performance of the music aired. For example, playing Hitz FM in a restaurant requires licenses from MACP, PPM, and RPM to compensate the songwriters, producers, and artists whose music is broadcast.
Personal Use Exemption
Playing radio at home for personal, non-commercial use does not require a license. This exemption applies because domestic settings are not considered public performances under the Copyright Act 1987. For instance, listening to Sinar FM or MY FM in your living room is covered under personal use and requires no additional permissions. However, if you play the same radio station in a business or public event, you need a license.
Specific Exemptions
There are limited exemptions where a license may not be required:
- Royalty-Free Music: If a radio station plays royalty-free music or music where the copyright has expired (70 years after publication), no license is needed. However, this is rare, as most radio stations play contemporary copyrighted music.
- Educational Settings: Music played by students or staff in schools for educational purposes, with an audience limited to those directly connected to the institution, may be exempt.
- Small Businesses (Limited Applicability): In some jurisdictions, like the U.S., small businesses under 2,000 square feet can play radio without a license under specific conditions (e.g., using a home-style radio system). Malaysia has no equivalent exemption, so businesses of all sizes typically need a license.
Licensing Process for Playing Radio
How to Obtain a License
To legally play radio in a commercial setting, businesses should follow these steps through MRM:
- Identify License Type: Determine how music is used (e.g., radio, live performances, or streaming). For radio, a public performance license is required.
- Register with MRM: Submit an application to MRM, providing details about your business, such as its type (e.g., restaurant, retail), size, and music usage (e.g., radio broadcasts). Include your business registration number and venue details.
- Pay Licensing Fees: Fees vary based on venue size and audience capacity. For example, PPM charges a minimum of RM750 for the first 2,000 square feet, plus RM0.248 per additional square foot. Total costs for licenses from MACP, PPM, RPM, and PRISM can reach up to RM3,000 annually for a small business.
- Submit Music Usage Reports: Some licenses require reporting the music played, including song titles and artists, to ensure accurate royalty distribution.
- Comply with Terms: Adhere to license conditions, such as restrictions on music types or usage reporting.
Applications can be submitted via MRM’s website (mrm.my) or by emailing licensing@ppm.my or licensing@macp.com.my. MRM simplifies the process by coordinating with MACP, PPM, and RPM.
Costs and Considerations
Licensing fees depend on factors like the business’s size, location, and music usage frequency. For instance, a small cafe playing radio may pay around RM750–RM3,000 annually, covering all required licenses. While this cost can be significant for small businesses, it ensures compliance and supports artists. Alternatively, businesses can opt for royalty-free music to avoid licensing fees, though this limits playlist options and may not include popular radio stations.
Radio Broadcasting vs. Playing Radio
Broadcasting License
Operating a radio station in Malaysia, such as BFM 89.9 or ERA, requires a broadcasting license from the Malaysian Communications and Multimedia Commission (MCMC) under the Communications and Multimedia Act 1998. This is distinct from a music license and applies to entities transmitting radio signals. Businesses or individuals playing radio do not need a broadcasting license, as they are not transmitting signals, only receiving them.
Amateur Radio Licensing
For individuals operating amateur (ham) radio stations, an Amateur Radio Operator’s Certificate and an Amateur Station Apparatus Assignment (ASAA) from the MCMC are required. This is unrelated to playing commercial radio stations like BFM or Hitz FM and applies only to hobbyist radio communication.
Consequences of Non-Compliance
Failing to obtain a music license for playing radio in a commercial setting can lead to legal repercussions under the Copyright Act 1987. Penalties include fines, injunctions, damages, or even imprisonment for severe violations. Licensing bodies like PPM and MACP actively monitor businesses, and non-compliance may result in demands for back payments or legal action. For example, a cafe owner reported on a forum that licensing officers visited their premises, emphasizing the need for compliance. To avoid such issues, businesses should secure licenses proactively.
Alternatives to Licensed Radio
To avoid licensing fees, businesses can:
- Use Royalty-Free Music: Platforms like Epidemic Sound offer royalty-free tracks that don’t require MACP or PPM licenses.
- Partner with Commercial Streaming Services: Services like SiriusXM Music for Business or Pandora CloudCover provide pre-licensed music, handling copyright fees for you. However, these are less common in Malaysia, and businesses must verify coverage with MRM.
- Play Non-Copyrighted Music: Music out of copyright (e.g., over 50 years after the creator’s death) can be played without a license, though such music is rarely featured on modern radio.
Conclusion
Playing radio in a commercial setting in Malaysia requires a music license from MRM, covering MACP, PPM, and RPM, to comply with the Copyright Act 1987. This ensures that songwriters, producers, and artists are fairly compensated for their work. While personal use at home is exempt, businesses like cafes, restaurants, or offices must secure licenses, with costs starting at RM750 annually. By obtaining the necessary licenses or opting for royalty-free alternatives, businesses can legally enhance their atmosphere with radio while supporting Malaysia’s music industry. For assistance, contact MRM at licensing@ppm.my or consult legal experts to ensure compliance.
