Sunday, Nov 11, 2012
KUALA LUMPUR - MORE than 20 karaoke outlets in the Klang Valley have reportedly suffered thousands of ringgit in losses after being approached by a syndicate claiming to represent various music industry interests.
It is learnt that this syndicate, going by the title K-Net Entertainment Sdn Bhd, had visited several karaoke outlets over the past two months to collect "royalty fees" from these premises.
"If these outlets do not comply and pay the royalty fees, the syndicate threatened to come back with relevant authorities and raid the premises," said MCA Public Services and Complaints Department head Datuk Seri Michael Chong.
"The syndicate behaves in an extremely professional manner, sending 'enforcement officers' back to errant karaoke outlets to give the owners fake reminders to settle the licensing and royalty fees."
Last month, the Replay Karaoke outlet in Kepong was "raided" by syndicate members who told the owner that he had committed copyright infringement as the songs in the outlet were pirated copies.
"The syndicate members were allegedly assisted by a police officer from the Federal Commercial Crimes Investigation Department. They seized more than RM20,000 (S$8,000) worth of karaoke equipment," Chong said.
It is learnt that the syndicate managed to hoodwink both the police as well as the Domestic Trade, Cooperatives and Consumerism Ministry into accompanying them on these "raids".
Dissatisfied karaoke operators have lodged more than 20 police reports over the issue and sought assistance from both Chong and the Recording Industry of Malaysia (RIM).
RIM chief executive officer Tan Ngiap Foo said they were aware of the complaints and advised karaoke outlets to liaise with them directly if there were any questions over the issue of copyright infringement.
"Initial investigations revealed that K-Net Entertainment is not only a dormant company, but is also operating illegally on the issue of music licensing in Malaysia," said Tan.
"The syndicate is not authorised to collect royalty payments."
Tan said karaoke operators who had paid the royalty fees to K-Net Entertainment should contact Chong's department at 03-21618044 or call RIM at 03-62072800.
"Our legal team may assist owners of the karaoke outlets in recovering the money they had paid to K-Net Entertainment.
"We also will help the karaoke operators to lodge complaints with the relevant authorities."
Tan added that there are probably many more unreported cases.
