Managing Intellectual Property

War against piracy targets landlords

01 June 2006

With the impending free trade agreement negotiations with the US, the Malaysian government appears to be making new moves to strengthen intellectual property rights enforcement. Specialized IP courts are proposed and the Domestic Trade and Consumer Affairs Ministry has also proposed that the copyright laws be amended to prosecute building owners with the offence of allowing their premises to be used for storing, selling or distributing counterfeit materials.

The view is that landlords and building owners who have been notified of their tenants' illegal activities must not abet such activities but take the necessary action to cease the illegal activities in their premises. Compelling building owners to monitor any illegal activities taking place in their premises, such as the production, storage or sale of pirated or counterfeit materials, would help curb circulation of counterfeit goods in the country.

This move has been met with fierce opposition from property owners and developers who feel that it is unfair to make them responsible for an infringing activity carried out on their premises because they have no knowledge of their tenants' activities and, even if they were informed, it would be costly for them to take action to terminate the tenancy and evict the tenant. Their stand is that copyright owners should enforce their rights directly against any occupant committing infringing acts. It will be interesting to see whether the amendments are made given this vociferous opposition and, if so, what form they will take.

In a related development, the Recording Industry Association of Malaysia (RIM) has filed a civil suit in the High Court against the landlord and owner of a shopping complex in Malaysia for allegedly renting its premises to counterfeit video compact disc traders. It is the first establishment in Malaysia to have a civil suit filed against it for renting its premises to traders storing and selling pirated materials. The result of this case, which is based on existing common law principles, would have a big impact on copyright enforcement in Malaysia, and is being watched closely.

The proposed amendments and the suit by RIM show the ongoing efforts to combat copyright infringement and piracy in Malaysia.

Patrick Mirandah


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