Malaysia reportedly eyes AI copyright safeguards under proposed legal reforms

Malaysia is reportedly considering sweeping amendments to its Copyright Act 1987, including new rules governing the use of copyrighted works by artificial intelligence (AI), as part of a broader effort to modernise the country's copyright framework for the digital age.

According to The Star, the Intellectual Property Corporation of Malaysia (MyIPO) has released a public consultation document outlining proposed reforms covering AI, online piracy, orphan works, artists' resale rights and copyright dispute resolution.

Among the proposals is the introduction of a legal framework governing the use of copyrighted works by AI, with a focus on transparency, fairness and appropriate compensation for rights holders.

Don't miss: Malaysia pledges to lead digital economy in SEA, says minister 

According to the consultation document, creators, publishers and media organisations reportedly want greater visibility into how their works are used by AI systems, alongside fair remuneration. MyIPO said Malaysia is exploring a framework that seeks to balance protecting creators' rights while supporting AI innovation.

The consultation paper also reportedly proposes stronger measures to combat online piracy through the introduction of dynamic injunctions. The mechanism would reportedly allow courts to block entire networks of pirate websites under a single court order, with newly identified infringing sites added without requiring separate legal proceedings each time.

MyIPO is also reportedly proposing changes to the Copyright Tribunal to streamline the resolution of royalty disputes. Under the current Act, such disputes can only proceed if both the licensing body and its member agree. The proposed amendments would allow either party to refer a dispute to the tribunal independently, with cases targeted to be resolved within 60 days after hearings conclude.

Separately, MyIPO is reportedly considering introducing a legal framework for orphan works, copyrighted materials whose owners cannot be identified or located. Under the proposal, works could be used for education, research, preservation or public interest purposes after a diligent search fails to identify the rights holder.

According to the consultation document, the move could enable libraries and universities to digitise older works, improving access to historical resources while supporting research, education and the creative economy.

The proposed amendments reportedly also include the introduction of an Artist's Resale Right (ARR), which would allow artists to receive royalties when their works are resold. Malaysia currently does not recognise ARR, meaning artists do not benefit financially when the value of their works increases after an initial sale.

According to MyIPO, the proposed right would apply to works including fine art, photography, illustrations, crafts, designs, architecture and prints. The agency added that more than 90 countries have implemented similar schemes.

In addition, the proposals reportedly seek to clarify the distinction between copyright protection for creative works, such as paintings, drawings and digital art, and industrial design protection for products manufactured through industrial processes. MyIPO said the changes are intended to improve enforcement consistency and reduce disputes between the two protection regimes.

Overall, the proposed reforms reportedly aim to improve access to justice, provide greater legal certainty and enable faster resolution of copyright disputes, according to MyIPO.

A+M has reached out for more information. 

The proposed amendments come as Malaysia continues to strengthen its broader AI governance efforts. Earlier this year, the Digital Ministry launched the public sector AI adaptation guidelines to support the ethical and responsible adoption of artificial intelligence across government agencies.

Developed by the National Digital Department (JDN) in partnership with the Malaysia Digital Economy Corporation (MDEC), the guidelines are aligned with national priorities and international standards, while supporting Malaysia's ambition to become an ASEAN digital hub and accelerate AI adoption across sectors.

Related articles: 
Malaysia passes bill in parliament to safeguard media freedom
DeepSeek not a threat to MY's data centre boom, says digital minister
MY govt to study DeepSeek and how to adapt it, says digital minister