FINAS will study the feasibility of a residual payment or revenue-sharing mechanism for audiovisual works to give actors a fairer share of economic benefits.
KUALA LUMPUR: The National Film Development Corporation Malaysia (FINAS) will study the feasibility of introducing a residual payment or revenue-sharing mechanism for audiovisual works, the Communications Ministry said.
It said the move aimed to ensure a fairer share of economic benefits for actors without compromising the competitiveness, commercial viability and sustainability of the country’s creative industry.
It said the study would focus on three key aspects: legal, industry and market, to ensure that any mechanism developed was suitable for Malaysia’s creative industry ecosystem.
“From the legal perspective, the study will determine whether such a mechanism should be introduced through amendments to existing laws, industry guidelines or standard contracts.
“From the industry perspective, the study will examine the structure of the creative industry ecosystem and current business models, while from the market perspective, it will take into account the practices of international streaming platforms and distributors,” the ministry said in a written reply published on the Parliament website.
The ministry was responding to a question from Kalam Salan (BN-Sabak Bernam), who asked whether the government planned to introduce a residual payment or rerun royalty mechanism for Malaysian actors when their works were commercially exploited on television, in cinemas, streaming platforms or overseas markets.
It said the study would also involve cooperation between FINAS, the Domestic Trade and Cost of Living Ministry (KPDN) and the Intellectual Property Corporation of Malaysia (MyIPO).
“Views from stakeholders will also be taken into account, including the Malaysian Film Artists Association Federation (GAFEMA), actors’ associations and producers’ associations, to ensure that the mechanism developed takes into consideration the interests of all parties,” it said.
At present, Malaysia does not have a specific mechanism for residual payments to actors for audiovisual works, while actors’ remuneration is generally determined by the terms and conditions agreed between the actors and producers or rights holders.