Distribution Policy (Visual Art)

100% of the royalty allocation for each artwork (such as paintings, prints, sculptures, photography, or digital illustrations) will be fully distributed to the Creator (Artist) category.

Single Creator: If the artwork is created by only one artist, that individual is entitled to receive 100% of the allocation share.

Collaborative / Group Artwork: If the artwork is created jointly, the 100% allocation will be divided equally among all registered creators, unless there is a written agreement stating otherwise.

Royalty distribution is based on the "COMPLETE WORK" status, which refers to a registration containing the complete list of creators who directly contributed to the production of the artwork.

Royalties are distributed once a year, covering the full financial year from 1 January to 31 December.

Distribution will be made within eighteen (18) months after the end of the financial year (1 January – 31 December).

Minimum threshold: RM 100.00

Below Threshold: If the royalty amount in a particular distribution is below RM100.00, the payment will be postponed and carried forward to the following distribution year.

Auto Payment: The royalty will be automatically paid in the next distribution cycle once the accumulated amount exceeds the RM100.00 threshold.

• Total Gross Royalties: All royalties collected from Auction Houses, Galleries, Online Platforms, and Collectors/Individuals.
• Minus: Management Costs: Operational and administrative costs deducted before net distribution.
• Minus: Statutory Deductions: Taxes and other statutory charges applicable to the royalty fund.
• Minus/Plus: Adjustments: Final reconciliation adjustments including carry-forwards from previous financial year.
• = Net Royalty for Distribution: The balance distributed pro-rata to all eligible members based on their allocation share.

Purpose: UWA provides compensation for the use of visual artworks that cannot be specifically recorded in primary data analysis — due to sampling factors, unreported digital usage, or hard-to-track secondary market transactions (e.g. digital displays in small premises, community exhibitions, corporate decorations).

Suspension & Reactivation: UWA allocation will be suspended for members who do not generate any primary royalties for more than one (1) year. However, it will be automatically reinstated in the year the member begins receiving primary royalties again.

Exclusion: No UWA allocation will be distributed to foreign collecting societies or foreign artists through reciprocal agreements.

Individuals recognized as visual art creators are eligible to join the organization subject to an official written mandate authorizing the CMO to manage their economic rights.

• Members must have joined the management body on or before the relevant Distribution Year.
• The member must generate royalties from primary sources (Auction Houses, Exhibitions/Galleries, or Collectors/Individuals) during the relevant distribution year, excluding UWA amounts.

Eligibility of Heirs: In the event of the death of a registered member, the right to receive royalty distributions shall be transferred to the lawful heirs or to an individual/entity officially appointed through written legal authorization.

Claim Procedure: The estate administrator, heirs, or appointed trustees are required to submit valid supporting documents (such as Letters of Administration or Probate) to verify eligibility to act on behalf of the deceased.

Claim Period: Claims for eligible royalties may be submitted within a period of three (3) years on behalf of a deceased member within the same year.

Unclaimed Royalties: If no claim is made after three (3) years, the royalty shall be transferred into the general royalty distribution pool and redistributed pro-rata to other eligible members.

Reciprocal Agreements: Royalties derived from the use of members' artworks overseas and collected through the CMO under reciprocal agreements shall be distributed based on verified usage records.

Regulatory Compliance: Distribution shall be carried out in accordance with the terms determined by the CMO Board of Directors and shall be subject to the rules and laws of the respective country.

Overseas Costs & Expenses: All costs, charges, and expenses incurred overseas — including taxes, administration, legal matters, translation, and logistics — shall be fully borne by the relevant foreign collecting society.

Transparency & Records: The CMO shall ensure that all international transactions are systematically documented and recorded for the purposes of transparency and accountability.

All royalties collected from the use of members' artworks overseas shall be distributed to the respective members at 100% without any deduction of administrative costs by the CMO.

• To ensure that members receive full benefits from the use of their artworks overseas.
• To avoid imposing administrative cost burdens on members for overseas collections.

The data and information used for distribution are collected from the following sources:

• Auction Houses: Records of resale transactions through public auctions or professional agents.
• Exhibitions / Galleries: Records of exhibitions, sales, and artwork usage in gallery or commercial spaces.
• Digital Platforms: Records of transactions, resale activities, and ownership data on art portals or marketplaces.
• Collectors / Individuals: Records of purchase and sale transactions reported by collectors or individuals in the secondary market.

All data shall be officially collected, verified, and systematically recorded in accordance with the CMO's established operating procedures. Only Complete Works are eligible to receive royalties.