Bhutan Local Governance

  Stakeholder Consultation on the Collective Management Organization (CMO) Regulation


The Department of Media, Creative Industry & Intellectual Property (DoMCIIP) held a stakeholder consultation meeting on April 4th, 2024, to discuss the draft Regulations for establishing a Collective Management Organization (CMO) in Bhutan. The purpose of the consultation was to gather feedback and insights from relevant stakeholders to ensure that the regulations are comprehensive and practical.

A CMO is an organization managed by creators that oversees the licensing of their works, collects royalties on their behalf, and distributes them to the copyright owners. CMOs provide valuable services such as monitoring music usage, negotiating licensing agreements, and offering legal support to rights holders. In essence, the purpose of a CMO is to facilitate the collection of royalties for the use of copyrighted works and act as a single point of access to such works for users, easing the burden on both the owners and the users.

Despite advancements in the Bhutanese music industry, significant challenges persist, including widespread copyright violations and the absence of efficient royalty collection mechanisms. The industry lacks a unified association, leading to individual licensing and unauthorized music use, depriving artists of potential income and hindering economic opportunities. Establishing a CMO is seen as a practical solution to these issues, simplifying rights management and providing more robust protection for creative industries, particularly the music sector. A CMO will also ensure fair compensation and benefits for music creators and the economy.

The meeting was attended by senior members of the music industry who participated in discussions and provided valuable feedback on various aspects of the regulations, including governance structure, membership criteria, and distribution of royalties. Before the consultation, the draft was shared with the World Intellectual Property Organization (WIPO) for their legal and technical comments, ensuring it complies with the WIPO copyright treaties and is based on international good practices.

The stakeholder consultation meeting is an important milestone in the process of establishing a CMO in Bhutan. It demonstrates the government's commitment to supporting and promoting the growth of the creative industries, which play a vital role in the country's economic development. Going forward, the department will incorporate the input gathered during the consultation and further circulate it to the stakeholders for any additional input before submitting it for the Ministry's endorsement.