Malaysia: Proposed Copyright Reforms Address AI, Digital Enforcement and the Creative Economy

Malaysia is considering significant reforms to its copyright regime as it seeks to modernise the Copyright Act 1987 in response to artificial intelligence, digital technology and the changing creative economy.

On 3 July 2026, the Intellectual Property Corporation of Malaysia (MyIPO) issued a Public Consultation Paper setting out proposals intended to strengthen copyright protection, improve enforcement, clarify the rights and responsibilities of copyright owners and support a fair and sustainable copyright ecosystem.

AI and Copyright

A significant part of the consultation concerns the growing use of artificial intelligence.

Malaysia’s Copyright Act does not currently contain an express AI-specific regime. The proposed reforms consider several important questions, including whether AI-generated works should receive copyright protection, who should own copyright in AI-assisted works and how much human contribution should be required before copyright arises.

The consultation also considers the use of copyright-protected works to train AI systems. Possible approaches include allowing certain forms of information analysis, permitting computational analysis where access to works is lawful, adopting a hybrid Malaysian model, or requiring express authorisation from rights holders.

The approach ultimately adopted could have important implications for technology companies, AI developers, content businesses and creators operating in Malaysia.

Stronger Digital Enforcement

MyIPO is also considering measures designed to strengthen enforcement against online copyright infringement.

One proposal would introduce dynamic injunctions, allowing blocking orders against piracy websites to extend to replacement domains, URLs and mirror sites without requiring rights holders to commence entirely new proceedings each time an infringing site moves.

The consultation also considers changes to Malaysia’s notice-and-takedown framework. Online service providers currently have up to 48 hours to remove or disable access to notified infringing content. MyIPO is considering whether the required response period should be shortened.

Additional proposals include stronger protection for technological protection measures and rights management information, as well as allowing courts to order the seizure or forfeiture of domain names used primarily for copyright infringement.

Copyright as a Commercial Asset

The reform programme also considers how copyright can be better recognised as an economic asset.

Malaysia is exploring an intellectual property financing ecosystem under which commercially valuable copyright — including rights associated with music, films, books, software and digital content — could be identified and valued when financial institutions and investors assess financing opportunities.

The proposals also include an Artist’s Resale Right, which could allow visual artists to receive royalties when original works are subsequently resold through qualifying commercial transactions such as auctions or gallery sales.

In addition, proposed reversion rights could allow creators or original copyright owners to recover rights previously assigned to publishers, producers or other commercial parties after a prescribed period and subject to statutory safeguards.

Improving Access and Copyright Administration

Other proposals would introduce a framework for the use of orphan works, where the copyright owner cannot be identified or located despite a reasonable search. This could assist libraries, museums, archives and educational institutions seeking to preserve or digitise culturally significant material.

The consultation also considers expanding certain copyright exceptions for education, research, libraries, archives, museums and persons with disabilities.

Malaysia is additionally considering stronger governance requirements for collective management organisations, including greater transparency over royalty collection and distribution, independent audits and improved complaint mechanisms.

Changes to the Copyright Tribunal are proposed to provide faster and more accessible specialist dispute resolution, including broader jurisdiction over royalty disputes and a target for decisions to be issued within 60 days after proceedings conclude.

What Businesses Should Consider

The proposed reforms could affect a wide range of organisations operating in Malaysia, including technology companies, digital platforms, media businesses, publishers, content creators, investors, financial institutions and businesses that own or license significant copyright portfolios.

The eventual legislation will need to balance stronger protection for creators and rights holders with innovation, commercial certainty, access to information and proportionate enforcement.

Businesses using AI, managing digital content or exploiting copyright commercially should therefore monitor the consultation process and assess how the proposed changes could affect their existing licensing, technology, enforcement and intellectual property strategies.

By Tay & Partners, Malaysia, a Transatlantic Law International Affiliated Firm.

For further information or for any assistance please contact malaysia@transatlanticlaw.com

Disclaimer: Transatlantic Law International Limited is a UK registered limited liability company providing international business and legal solutions through its own resources and the expertise of over 105 affiliated independent law firms in over 95 countries worldwide. This article is for background information only and provided in the context of the applicable law when published and does not constitute legal advice and cannot be relied on as such for any matter. Legal advice may be provided subject to the retention of Transatlantic Law International Limited’s services and its governing terms and conditions of service. Transatlantic Law International Limited, based at 84 Brook Street, London W1K 5EH, United Kingdom, is registered with Companies House, Reg Nr. 361484, with its registered address at 83 Cambridge Street, London SW1V 4PS, United Kingdom.