Govt mulls residual payments for actors when productions are reused

 Communications minister Fahmi Fadzil says Finas will study which revenue-sharing mechanism is most suitable.

Communications minister Fahmi Fadzil was responding to an MP who asked whether the government plans to introduce a residual payment or rerun royalty mechanism for actors. (Bernama pic)

PETALING JAYA:

The government will study the feasibility of introducing residual payments or revenue sharing to ensure Malaysian actors benefit when works featuring their performances continue to generate commercial revenue.

Communications minister Fahmi Fadzil said his ministry, through the National Film Development Corporation Malaysia (Finas), will examine the suitability of introducing a residual payment or revenue-sharing mechanism for audiovisual works.

He said the review will consider whether such a mechanism should be implemented through amendments to the law, industry guidelines, or standard contracts.

It will also consider the structure of the creative industry ecosystem and current business models as well as practices adopted by streaming platforms and international distributors.

He was responding to Kalam Salan (PN-Sabak Bernam), who asked whether the government planned to introduce a residual payment or rerun royalty mechanism for actors.

Kalam said such a mechanism would allow actors to receive a reasonable share of profit generated when their work is used on television, in cinemas, on streaming platforms or in overseas markets.

Fahmi said that in the US, for example, residual payments are not specifically established by law, but are negotiated collectively between actors’ unions such as the Screen Actors Guild, the American Federation of Television and Radio Artists, and producers’ associations.

“Such payments are made to actors covered under the relevant agreements when a film or drama is used in markets after its initial release, including through television, video and streaming.

“For films, these payments are typically calculated as a percentage of the distributor’s gross receipts. The amount is then distributed among the actors based on their filming period and the original payment received by each actor,” he said in a written parliamentary reply.

In Malaysia, the Copyright Act 1987 provides certain rights to performers. However, there is currently no specific mechanism for residual payments for audiovisual works.

“Malaysian actors’ remuneration is generally determined based on the terms and conditions of contracts agreed between the actors and the producers or rights holders of the works,” Fahmi said.

Fahmi added that Finas will also work with the domestic trade and cost of living ministry as well as the Intellectual Property Corporation of Malaysia on the review exercise.

“The views of stakeholders will also be taken into account, including Gabungan Persatuan Karyawan Filem Malaysia, actors’ associations, and producers’ associations, to ensure that the mechanism developed takes into consideration the interests of all parties,” he said. - FMT