Malaysian Music/Film Production Licenses

Malaysian Music/Film Production Licenses | Bestar

Malaysian Music/Film Production Licenses

Navigating the licensing landscape for music and film production in Malaysia involves understanding the specific requirements set by various authorities. Here's a breakdown:

Malaysian Music Production Licenses

In Malaysia, music licensing primarily revolves around protecting copyrights and ensuring fair compensation for creators. The key organizations involved are:

• Music Authors' Copyright Protection (MACP): This organization deals with the rights of composers, songwriters, and publishers. You'll need a license from MACP for the commercial use of musical compositions and lyrics.

• Public Performance Malaysia (PPM): PPM handles the public performance rights of sound recordings. This license is required if you intend to play recorded music publicly (e.g., in a restaurant, retail store, or during an event).

• Recording Performers Malaysia Berhad (RPM): RPM is another agency involved in music licensing, often alongside PPM and MACP, especially for businesses playing copyrighted music as part of revenue generation.

Key considerations for music production/use licenses:

• Type of Use: The specific license needed depends on how you use the music (e.g., public performance, synchronization with visual content, reproduction, commercial rental).

• Application Process: Generally involves identifying the required license, completing application forms with details about your business and music usage, and paying the stipulated fees.

• Fees: Fees vary based on factors like the type of music played, venue size, audience capacity, and duration of the license.

• Compliance: Obtaining the appropriate licenses ensures legal compliance with the Copyright Act 1987 and avoids potential penalties like fines or legal action.

• Additional Licenses: A Public Performance License from PPM does not cover live performances, which may require additional licensing from MACP.

If you are a music producer creating original works, you should also consider copyright registration to protect your intellectual property.

Malaysian Film Production Licenses

The primary authority for film production and related activities in Malaysia is the National Film Development Corporation Malaysia (FINAS).

FINAS Licenses are mandatory for:

• Film and video production companies

• Distributors of films and videos

• Exhibitors of films and videos

Types of FINAS Licenses:

• PF: Film Production License

• PV: Video Production License

• DF: Film Distribution License

• DV: Video Distribution License

• EF: Film Exhibition License

• EV: Video Exhibition License

General Requirements for a FINAS Production License:

• Company Registration: Must be registered as a private limited company (Sdn Bhd) in Malaysia.

• Paid-up Capital: Have a minimum paid-up capital (e.g., RM50,000 for PF/PV licenses).

• Production Plan: Submit a three-year production plan detailing your proposed projects.

• Industry Association Membership: At least one shareholder must be a member of a recognized industry association (e.g., Persatuan Seniman Malaysia (SENIMAN), Persatuan Sutradara Malaysia (FDAM), etc.).

• Required Documents:

  • Completed Application Form (BPL-1)

  • Company's Memorandum and Articles of Association

  • Forms 24, 32A (if applicable), and 49 from the Companies Commission of Malaysia (SSM)

  • Certified true copies of all documents by the Company Secretary or SSM

  • Latest three months' company bank statements

  • Proof of membership in a recognized industry association.

Additional Key Requirements for Film Production:

• Filming Authentication Certificate (SPP): Before commencing any filming activities, producers must obtain the SPP from FINAS. Applications should be submitted at least seven days prior to the start of filming. This applies even to media meant for social media platforms.

• Filming by Foreign Companies:

  • Foreign production companies need to engage a local sponsor (a FINAS-licensed production service company) who is also registered with PUSPAL.

  • The local sponsor will handle the application process and represent the foreign company during production.

  • At least 30% of the production crew must be Malaysian citizens or permanent residents (who are members of local film associations).

  • All foreign cast and crew need to be listed in the application.

  • Application for Professional Visit Pass (PVP) for foreign crew and cast.

  • Approval from PUSPAL (Unit for Application for Foreign Filming and Performance by Foreign Artiste) is required.

• Location Permits: You will need to secure location permits from building owners, business owners, city councils, or relevant government departments (e.g., Forestry or Wildlife Departments) if filming in public areas or protected areas.

• Royal Malaysia Police (PDRM): Cooperation with PDRM is required for filming on public highways, or when using special effects, explosions, or firearms. Permission is also needed to portray police uniforms or marked police vehicles.

• Made in Malaysia Certification (MIM): After completing a commercial film, a license holder must apply for MIM from FINAS to certify that the film was produced in Malaysia.

• Standard Contract & SOCSO/EPF Contributions: FINAS now requires applicants to present a Standard Contract and show proof of SOCSO or Employees' Provident Fund (EPF) contributions for all workers.

• Public Entertainment Licence for Children and Young People: If employing children or young people in production, this license is required in accordance with the Children and Young Persons (Employment) Act 1966.

Film in Malaysia Incentive (FIMI):

FINAS also offers incentives like the Film in Malaysia Incentive (FIMI) for eligible productions, both domestic and foreign, that meet certain qualifying Malaysian Production Expenditure (QMPE) thresholds and other criteria (e.g., Malaysian crew requirements, cultural test).

Application Process:

• Download application forms (e.g., BPL-1) from the FINAS website.

• Prepare and certify all required documents.

• Submit the application to the FINAS Licensing & Enforcement Department or regional offices.

• Await approval and license issuance.

It is highly recommended to contact the respective organizations (MACP, PPM, RPM for music; FINAS and PUSPAL for film) directly for the most up-to-date and specific guidance based on your particular production needs.

How Bestar can Help

Malaysian Music/Film Production Licenses

Bestar is invaluable resources for individuals and companies involved in music and film production in Malaysia. The entertainment industry is complex, with unique legal and commercial challenges. Here's how Bestar can significantly help:

Bestar offers expertise in navigating the intricate web of laws and regulations governing the music and film industries in Malaysia. Bestar offers strategic guidance to optimize operations, enhance profitability, and navigate market dynamics within the entertainment industry.

1. Ensuring Legal Compliance:

   
   

   • Licensing: We guide you through obtaining the necessary licenses from organizations like FINAS (for film), MACP, PPM, and RPM (for music), ensuring you comply with the Copyright Act 1987 and other relevant regulations. This is crucial to avoid fines, legal action, and production delays.

   • Regulatory Requirements: We advise on compliance with specific industry regulations, such as the Film Censorship Act 2002, and guide you through the process of obtaining a Filming Authentication Certificate (SPP) from FINAS.

   • Foreign Productions: For foreign entities, they we with engaging local sponsors, obtaining PUSPAL approval, and securing Professional Visit Passes (PVPs) for foreign cast and crew.

     
     

2. Intellectual Property (IP) Protection:

   
   

   • Copyrights: We help register copyrights for musical works, sound recordings, film scripts, and finished films, providing crucial protection against infringement.

   • Trademarks: We can advise on registering trademarks for your company name, brand, or film titles.

     
     

3. Contract Drafting and Negotiation:

   
   

   • Artist/Talent Agreements: Drafting and reviewing contracts for musicians, actors, directors, writers, and other crew members, ensuring fair terms and protecting your interests.

   • Production Agreements: Negotiating and drafting co-production agreements, financing agreements, distribution deals, and licensing agreements (e.g., synchronization licenses for music in films).

   • Location and Release Forms: Preparing necessary release forms for talent, locations, and other elements used in your production.

   • Sponsorship and Endorsement Deals: Structuring and negotiating commercial agreements.

     
     

4. Advisory and Risk Management:

   
   

   • Legal Opinion: Providing legal opinions on various aspects of your production, from content suitability to potential legal risks by our partnered lawyers.

   • Risk Assessment: Identifying potential legal pitfalls and advising on strategies to mitigate risks.

   • Tax Incentives: Advising on eligibility for incentives like the Film in Malaysia Incentive (FIMI).

     
     

5. Corporate and Business Structuring:

   
   

   • Advising on the most suitable business entity for your production company (e.g., Sdn Bhd).

   • Assisting with company incorporation and ensuring compliance with the Companies Act 2016.

   
   

6. Business Planning and Strategy:

   
   

   • Market Research: Conducting thorough market analysis to identify trends, audience preferences, and competitive landscapes.

   • Strategic Roadmaps: Developing comprehensive business plans, including financial projections, marketing strategies, and operational models.

   • Growth and Expansion: Advising on market entry strategies, diversification, and international expansion.

     
     

7. Financial Management and Funding:

   
   

   • Budgeting and Cost Control: Assisting with detailed budgeting for productions and implementing cost-saving measures.

   • Investment Acquisition: Helping to prepare compelling pitches for investors, identify funding sources (e.g., grants, loans, private equity), and structure investment deals.

   • Revenue Generation: Developing strategies for maximizing revenue streams from various channels (e.g., film distribution, music streaming, merchandise, live events).

     
     

8. Operational Efficiency:

   
   

   • Process Optimization: Streamlining production workflows, project management, and administrative processes to enhance efficiency.

   • Talent Management: Advising on effective talent acquisition, management, and retention strategies.

     
     

9. Human Resources and Organizational Development:

   
   

   • Team Building: Assisting in building and structuring effective production teams.

   • Training and Development: Identifying skill gaps and recommending training programs for staff.

   • HR Compliance: Ensuring compliance with labor laws, EPF, and SOCSO regulations.

In essence, Bestar provides a comprehensive support system for music and film professionals in Malaysia. We act as expert navigators, minimizing risks, ensuring compliance, optimizing operations, and ultimately helping to achieve creative and commercial success in a highly competitive industry. For complex productions or emerging businesses, our expertise can be the difference between struggle and significant achievement.

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