Malaysia Proposes Copyright Law Reforms to Address AI Use and Combat Online Piracy

Malaysia is undertaking a significant overhaul of its copyright legislation to modernize protections and address emerging issues related to artificial intelligence (AI), online piracy, and the changing landscape of creative industries. The Intellectual Property Corporation of Malaysia (MyIPO) has released a public consultation document detailing proposed amendments to the Copyright Act 1987.

A central feature of the proposed reforms is the establishment of a legal framework governing the use of copyrighted works by AI technologies. This framework emphasizes transparency, fairness, and appropriate compensation, ensuring that creators are informed about how their works are utilized while fostering continued AI innovation. MyIPO stated that Malaysia is aiming to balance protecting creators’ rights with supporting AI development.

To strengthen enforcement against online piracy, MyIPO proposes introducing dynamic injunctions. This legal mechanism would empower courts to issue a single order blocking entire networks of pirate websites and to add newly identified infringing sites without initiating separate legal proceedings. This approach seeks to provide a more efficient and comprehensive response to digital piracy.

The reforms also seek to expand the authority of the Copyright Tribunal. Under the proposals, licensing bodies or their members could refer royalty disputes to the tribunal without needing consent from the opposing party. Additionally, MyIPO recommends that all tribunal cases be resolved within 60 days following the conclusion of hearings, aiming to expedite dispute resolution.

Addressing the issue of orphan works—copyrighted materials whose owners cannot be identified or located—the proposed amendments would permit their use for education, research, preservation, and public interest projects after a diligent search for the rights holder has been conducted. MyIPO highlighted that this change could facilitate libraries and universities in digitizing historical materials, while providing researchers and educators with improved access to cultural resources, thereby supporting the broader creative economy.

Another significant proposal is the introduction of an Artist’s Resale Right (ARR), a right currently unrecognized in Malaysia despite adoption in over 90 countries. The ARR would entitle artists to receive royalties when their works are resold. Eligible works would include fine art, photography, illustrations, crafts, architecture, designs, and prints, allowing artists to benefit from increases in the value of their creations after the initial sale.

Furthermore, the amendments aim to clarify distinctions between copyright protection for creative works and industrial design protection for manufactured products. This clarification is intended to improve enforcement consistency and reduce disputes between rights holders.

Overall, MyIPO’s proposed reforms are designed to improve access to justice, provide greater legal certainty, and enable faster resolution of copyright disputes. These changes reflect Malaysia’s commitment to adapting its legal framework in line with the evolving demands of its creative and digital economies.