14 August, 2016

Topic 6 Protection of Reputation SEM9

Topic 6 Protection of Reputation
1.  Discuss  how a person’s reputation is protected;     
2.  Discuss   the   dangers   of  publishing   information   which   may   injure   the         reputation of another; and     
3.  Apply    protection  of  reputation  within  the  limits  of  the  available         defences.   ? 

INTRODUCTION  
Defamation law protects a person’s reputation from unjustifiable attacks. For the  journalist, publisher and broadcaster, the  law of defamation presents one of the  greatest   perils   in   their   vocation.   In   Malaysia,   the   statute   on   defamation   is   the  Defamation Act 1957.   For the media, everyone participating in or responsible for the publication of an  article that injures the reputation of a person can be sued. Each communication or  repetition of a defamatory statement is considered a separate cause of action. If a  defamatory statement is considered published in a newspaper, the action can be  brought    against  the  proprietor,  editor, author,  printer,  distributor  as  well  as  vendor.    Articles,  headlines,  photographs,   cartoons   and   other  illustrations,  photograph     captions,  reader’s  letters, all  advertisements  are  vulnerable   to  defamation risks.

There are, however, two features of defamation law that protect the media:  
(a)    False   statements   are   not  necessarily   defamatory.   The   law   of  defamation   is         activated   only   when   a   false   statement   actually   damages   a   reputation.   It         must lower the victim in the eyes of a right-thinking man.  
(b)    Truth     is  an  absolute    defence     no   matter   how     unfair   or  unnecessary       its         revelation is.   The law also reflects certain media disadvantages. The burden of proof is on the  media   defendant.   A   published   allegation   may   be   true   but   the   media   defendant  carries the burden of proving its truth. Costs and damages for defamatory actions  are very high and unpredictable.   This topic looks at the   law of defamation, its   ambit   of   application   and how the  media can use the available defences.   

6.1           WHAT IS DEFAMATION?  
The Defamation Act 1957 does not provide a definition for defamation. Refer to  Table 6.1 for definitions by various scholars.                            

Table 6.1: Various Definitions of Defamation           
Scholars                                            
Definition    Winfield & Jolowicz       

 Defamation is the publication of a statement which reflects on a    (1998)                     person’s reputation and tends to lower him in the estimation of                               right   thinking   members   of   society   generally   or   tends   to   make                               them be shunned or avoided.    Salmon & Hueston             The tort of defamation consists in the publication of a false and                               defamatory       statement    concerning     another    person    without                               lawful justification.    Dias & Markesinis           A defamatory statement is one which injures the reputation of    (1989)                     another by exposing him to hatred, contempt, ridicule or which                               tends to lower him in the estimation of right thinking members                               of society.   Generally,      a defamatory       statement     is  one   that,   in  the   circumstances      of  the  publication, would be likely to make reasonable and respectable people think less  of   the   plaintiff.  The   test  is  often   described     as  “lowering     the   plaintiff  in   the  estimation   of   right   thinking   members   of the   society”   or   expose   the   plaintiff   to hatred, contempt or ridicule or „cause him to be shunned or avoided. It is all a  question of respect and reputation.   For example:     An   item   on   the   8.00pm   news   reports   that   Dato   X   is   involved   in   corruption    during   his   reign   as   the   Chief   Minister.   Dato  X   may   have   a   cause   of   action    against the journalist and the television station  his reputation will have been    lowered in the minds of members of society.     A pop magazine reports that Miss S, a pop singer, is too ill to perform at her    next live concert. This is not defamation to suggest that someone is ill.    

6.2          TYPES OF DEFAMATION  
There are two types of defamation:  
(i)    Libel; and  
(ii)   Slander.   

Table 6.2 displays the differences between libel and slander.                          

Table 6.2: Differences between Libel and Slander                         
Libel Slander    
A defamatory statement made in writing            
Defamation   made   by   word   of   mouth   or   by    or at least some permanent form.                   gestures.    
Plaintiff  may    sue   for  libel  despite  no    Slander must be proven by actual damage.    financial loss.     

Section 3 of the Defamation Act 1957:    Provides:   For the purposes of the law of libel and    slander    the  broadcasting    of  words    by    means   of   radio   communication   shall   be    treated   as  publication    in  a  permanent    form.   Defamation, by means of broadcasting is    deemed as libel.                                             

6.3           ELEMENTS OF DEFAMATION  
There   are   three   elements   for   defamation.   All   these   three   elements   must   exist  before an action for defamation may succeed:  
(a)    There must be a publication;  
(b)    The publication must contain words that are defamatory in nature; and  
(c)    The words must refer to the plaintiff.  

6.3.1         Publication   Publication   simply   means   that   the   defamatory   statement   or   material   must   be  made   known   to   some   person   other   than  the   person   to   whom   it   is   written   or  spoken.      Plaintiff  must     establish   that  the    material    complained      of   has   been  communicated   to   a   third   person   i.e.   to   someone   other   than   the   plaintiff.   If   the  communication   of   the   imputation   is   made   directly   to   the   person   to   whom   it   is  made   and   there   is   no   third   party   present   at   that   time,   then   there   will   be   no  publication for the purposes of defamation.  

Figure 6.1: The Art of Selling                   
Source: http://www.makingthenumbers.com/reprint2.html                                       

For the purpose of this element (publication) to be complete (refer Figure 6.1), the  language   used   must   be   understood   by   the   reader   or   the   audience   or   the   third  person     mentioned      above.    For  example,     a  newspaper      published     a  defamatory  article in Mandarin but the newspaper was circulated in a remote Malay village  where      no   one   understood      the  language.     The    element    of  publication     is  not  satisfied.   Every person who negligently takes part in or   authorises the publication of the  defamatory       material   is   liable.   Therefore,   the   writer,  editor,   publisher,   printer,  proprietor, distributor and vendor may be potentially liable. Similarly in a TV or  radio     station    those     who    hold    the  same    position    as   any   of  those   people  mentioned above, could be potentially liable. It is worth noted that in Australia, a  radio    station   has   been   held   liable  for  the  publication     of  defamatory      material  spoken      by   a   member      of  the   public    participating     in  a  talk-balk session  (regardless whether the interviewer endorses the remark or not).   If a media organisation republishes a defamatory statement, it may be liable for  republication   of   the   defamatory   statement   and   in   the  case   of   a   live   broadcast  interview,      liability  is  imposed     on   the  media     because    it  has   simultaneously  published the statement of the person  interviewed. The media may also expose  itself   to   liability   for   repeating   the   defamatory   statement   (hence   republishing   it)  not    withstanding      the  fact  that   they   might    be  protected    by   a  defence    in  the  following situations:  

(a)    In a situation made by a member of the public and simply reported as a fact         without the media organisation approving or adopting;   (b)    A statement is published by the media for the purpose of expressing doubt         to the correctness of the defamatory statement; or  

(c)    The    public    is  informed    by   the  media     of  the  existence    of  a  defamatory         rumour or publish the defamatory material via the letters to the editor        column.     In Lee Kuan Yew v. Derek Gwyn Davies & Ors [1990] MLJ 390    The     defendant      publisher     was    held   liable    for   defamatory       imputations    contained      in  a  statement    of  a  third  party   which    was    quoted    in  an  article    published in the Far Eastern Economic Review.  

6.3.2         Words Must be Defamatory in Nature  
There is no universal test to be applied to determine when statements or words  are defamatory in nature. Generally words are defamatory in nature, if:  
(a)    It   tends   to  lower    the   plaintiff  in  his/her    estimation     of  right   thinking         members of society in general;  
(b)    It exposes him/her to hatred, contempt or ridicule; and  
(c)    It causes him/her to be shunned or avoided. 

 In deciding what the words mean for the purpose of defamation, the intention of  the   writer   or   speaker   is   irrelevant.   Whether   a   statement   is   defamatory   involves  assessing   the   imputations   conveyed   by   the   statement   on   the   reader.   The   test   is  whether      under    the   circumstances      in  which    the   statement     was   published,     a  reasonable      person    to  whom      the   publication    was    made,    would     be   likely  to  understand that the statement is defamatory. The test is its effect on the ordinary,  reasonable reader. This reasonable reader is sometimes referred to as the control  group   or   the   hypothetical   referees.   The   control   group   does   not   necessarily  refer   to   a   particular   group   nor   should   it  refer   to   everyone.   It   is   enough   that   it  refers   to   an   appreciable   section   of   the   community.   We   can   also   say   that   this  control group is usually a group of law abiding citizens or average thinking men,  the   ordinary   reasonable   citizen   or   that   of   right   thinking   members   of   society   in  general.   What an ordinary reader thinks may change from time to time. For example, at  one time it is defamatory to call a person a German or a gay. This might not  be defamatory anymore in certain countries.     In Hasnul bin Abdul Hadi v. Bulat [1978] 1 MLJ 75    The court held that to describe a person Abu Jahal is a libel.   Words may be defamatory in their natural and ordinary meaning. This refers to  the    meaning     of  words     at  their  face   value,   together    with   any   inferences     an  ordinary man would take in the light of his general knowledge, common sense  and     experience.    It  does    not  include    extrinsic    facts  passing    beyond     general  knowledge.                                        ‘

TOPIC 6       PROTECTION OF REPUTATION   
In Ng Cheng Kiat v. Overseas Union Bank [1984] 2 MLJ 140    The plaintiff has a current account with the defendant. The plaintiff claimed    that the defendant refused to clear two of his cheques which is contrary to his    obligation     to  do    so.  The    plaintiff further     claimed    that   the   defendant    wrongfully   and with bad faith wrote Account Closed on the cheques. The    defendant also informed certain people about the plaintiff’s accounts position.    The defendant denied that the statement Account Closed is defamatory. The    court held that the statement is defamatory of the plaintiff.    

In Luk Kai Lam v. Sim Ai Leng [1978] 1 MLJ 214    The   statement, Eh,   apakah   yang   hendak   dibanggakan   tentang   diri   awak?    Siapakah yang tidak tahu bahawa awak menerima tetamu di bilik atas dengan    bayaran   RM50   setiap   kali.   Pelacur   dan   Siapa   yang   tidak   tahu   bahawa   dia    dan Dia tinggal bersama di rumah penjagaan selama setahun sebelum mereka    berkahwin is defamatory in nature.   Often the words used by the defendant will appear innocent in themselves, but  have   a   hidden   meaning   which   would   be   recognised   in   the   light   of   other   facts.  This hidden meaning is called innuendo. In this situation the plaintiff will have to  show that the words complained are not defamatory in themselves, but become  defamatory in the light of certain facts known to certain people.     In Tolly v. Fry [1931] All ER 131    The    plaintiff,  an  amateur    golfer,  was  depicted    in  an  advertisement     for  the    defendants     chocolates.   He   successfully   showed   that    certain  people   familiar    with the golfers world would think that he had been paid for the advertisement    and that he has prostituted his amateur status.   

6.3.3         The Words Must Refer to the Plaintiff (Identification)  
The defamatory statement must refer to the plaintiff. It is not necessary to prove  that the defendant has the intention to defame the plaintiff. The plaintiff needs to  prove that the words published refer to the plaintiff. If the publication does not  specifically    name    the  plaintiff,  the  plaintiff  would     need   to  demonstrate     that  people interpreted it as referring to the plaintiff.

Table 6.3 shows some examples.                                            

Table 6.3: Examples of Defamatory Statements  
A person has been                  
A   newspaper      reported     a  magisterial    inquiry    in  which    a  named, but insufficient            

Detective A was said to be corrupted. It turned out to be  or inaccurate identifiers           a  

Constable     A   to  whom      the  allegation    referred.    Two  have been given                    

Detectives     A    (the  same    name)    sued   successfully,    after                                      demonstrating        that    acquaintances       thought     the   article                                      referred to them.   No one has been named,              In   the   case   of Butler   v.   John   Fairfax   Ltd.   (1994),   the   Sun-  but someone who meets               Herald     newspaper      published     an   article  titled  Backpack  the description of the              Murders   Police   Quiz   Socialite,   which   described   a   suspect  defamed person claims it            whom   police   were   questioning   in   relation   to   the   Belanglo  refers to him/her and               Forest backpacker serial murders. A 33 year old man sued  sues                                the    newspaper,       claiming     friends      and    relatives    had                                      identified   him   as   the   suspect   on   the   basis   of   identifying                                      factors listed in the article.   No individual has been              In John   Fairfax   Group   v.   Farley   (1993 ),   an   article   in   the  named, but the                      Australian Financial Review in 1992, defamatory references  defamatory article refers           were    made     to  officials  of   the  National     and    Victorian  to a small group of                 Farmers Federation and NFF and VFF officials and their  people of whom the                  lawyers   and   consultants   mates.   Although   they   were   not  plaintiff is a member or a          named, six individuals sued, claiming that readers thought  representative                      the   article  referred   to  them.    The   courts   have   decided     to                                      view    such   cases   in  terms    of  the  size  of  the   class  being                                      defamed,      the   generality     of  the   charge     made    and    the                                      extravagance   of   the   accusation,   with   each   case   considered                                      according     to  its  own    circumstances.     The   test  is  whether                                      ordinary,      reasonable      individuals       would      believe    the                                      defamatory statements referred to the plaintiffs.   A fictitious character has          In  E.   Hulton   &   Co.   v. Jones   [1910]   AC   20,   an   individual  been named. A real                  sued successfully after showing people thought a fictitious  person meeting the                  character by the same name in a story was him.  fictitious person’s  description sues,  claiming it refers to  him/her                                         

6.4           MEDIA DEFENCES  
Table 6.4 shows examples of media defences.                                 

Table 6.4: Examples of Media Defences    
Truth or                   Section 8 provides that in an action for libel or slander in respect    Justification              of   words    containing    two   or  more   distinct   charges    against   the                               plaintiff, a defence of justification shall not fail by reason that the                               truth of every charge is not proven if the words not proved to be                               true   do   not  materially    injure   the  plaintiff’s  reputation     having                               regard to the truth of the remaining charges.     Fair Comment               Section 9 provides that in an action for libel or slander in respect                               of   words    consisting   partly   of   allegations  of   fact  and  partly   of                               expression of opinions defence of fair comment shall not fail by                               reason   only   the   truth   of   every   allegation   of   fact   is not   proved   if                               the expression of opinion is fair comment having regard to such                               of the facts alleged or referred to in the words complained of as                               are proved.     Privilege                  Qualified privilege of newspaper is provided in Section 12     Reports of Judicial        Section 11 provides that a fair and accurate and contemporaneous    Proceedings                report   of   proceedings   publicly   heard   before   any   court   lawfully                               exercising     judicial  authority    and   of  the  judgment,     sentence   or                               finding of any such court shall be absolutely privileged, and any                               fair and bona fide comment thereon shall be protected, although                               such    judgment,     sentence    or  finding   be  subsequently      reversed,                               quashed   or   varied,   unless   at   the   time   of   the   publication   of   such                               report    or  comment      the   defendant     who    claims   the   protection                               afforded   by   this   section   knew   or   ought   to   have   known   of   such                               reversal, quashing or variation. However, nothing in this section                               shall authorise the publication of any blasphemous, seditious or                               indecent     matter    or   any   matter    the   publication    of   which    is                               prohibited by law.     Innocent                   Section    7  provides     that  a  person    who     has  published     words    Disseminator or            alleged to be defamatory of another person may, if he claims that    Unintentional              the   words   were   published   by   him   innocently   in   relation   to   that    Defamation                 other person, make an offer of amends under this section; and in                               any such case if the offer is not accepted by the party aggrieved, it                               shall be a defence.     Apology in                 Section    provides    that   apology    may    be  used   for  mitigation     of    mitigation of              damages.    damages                                                 

SELF-CHECK 6.1         
1.  What is the difference between libel and slander?         
2.   What are the elements of defamation?         
3.  How can you be protected against a defamation suit?           

ACTIVITY 6.1        
1.  Read   the   cases   Mohamed   Azwan   Ali   and   Normala   Samsudin   and            examine the reasons for the outcome of the two cases.        
2.   Discuss    the  implications     of  the publication     from    the  case   below.            (Extract of case taken from Mark Pearson, The Journalist’s Guide To            Media Law, at p.105.)             Fayn   v.   Thompson   Properties   Pty   Ltd   (1992)   16   Gazette   of   Law   and            Journalism 24 (Fish’s Arse Case)             Facts:            The   fashion   industry   magazine   Ragtrader   published   a  report   on   the            plaintiff’s company, which included this passage:             Although   there   are   a   few   surprises   in   business   failures   these   days,            Morrie’s mahulla raised eyebrows. He was known to have something            in common with a fish’s rear end when it came to spending. He was            high priest of the low-priced dress and his sons seemed to be doing it            steady in T-shirts and the like.  

? Defamation         law    is  an  important     area   of  law   to  those   involved     in  the      communications         industry.     The   understanding       of  its  elements     and    the      available defences help reduce the risk of being sued.  
? Three       elements    of  defamation      are  publication,    nature   of  the   words    and      reference to the plaintiff.  
? Defences        available   to  the  media    are  justification,  fair  comment,     privilege,      innocent disseminator and apology.                                     

TOPIC 6     PROTECTION OF REPUTATION  

Fair and Accurate Reporting                   
Justification  
Fair Comment                                  
Libel and Slander  
Freedom of The Press                          
Privilege  
Innocent Disseminator                         
Sub Judice Contempt  

Intentional Contempt

Topic 8 Communication Law SEM9

Topic 8 Communication Law

1. Discuss    the  legislations  that regulate  the  communications   and       multimedia industry; and    
2. Discuss the statute that deals with communication law.   ?

INTRODUCTION  
The   Communications   and  Multimedia   Act 1998  (CMA)   is  a  legislation  that  regulates the communications and multimedia industry. Preceding the Act, what  is   now   known   as   the   communications   and  multimedia   industry   used   to   be   the  telecommunications, broadcasting and IT industries. These three industries were  regulated by two different legislations (see Figure 8.1).     

Figure 8.1: Separate legislations for telecommunications and broadcasting industry   The telecommunications industry was regulated by the Telecommunications Act  1950 and the broadcasting industry was regulated by the Broadcasting Act 1988. 

However, the IT industry was not regulated by a specific legislation. The CMA integrates these three industries to become the communications and multimedia  industry (refer to Figure 8.2).                     

Figure 8.2: Communication and Multimedia Industry  

The CMA is divided into five regulatory frameworks i.e. procedural, economic,  technical, consumer and social regulation (refer to Figure 8.3).                              
Figure 8.3: Regulatory framework     
Source: Explanatory Statement to the Communications and Multimedia Bill p. 141 In   the   telecommunications,   computer   and   broadcasting   industry,   convergence  connotes the blurring of the traditional lines delineating each industry as one or  the   other   develops.    

On   the  same    basis,  the   Malaysian     Communications        and  Multimedia   1998   was   enacted.   When   the   Communications   and   Multimedia   Act  1988   came   into   force   on   1st   April,   1999,   these   two   legislations   were   repealed  (Section 273). However, it does not affect existing general laws, for example, laws  on defamation, copyright, illegal content and national security.   The driving force that led to the enactment of the Communications and Multimedia  Act 1998 was the need for a single body to implement the supervisory duties of the  communications and multimedia sectors. The objects of the Act are to promote the  national     policy   objectives    under     section   3(2)   for  the   communications        and  multimedia industry, to establish a licensing and regulatory framework in support  of national policy objectives for the communications and multimedia industry, to  establish    the   powers     and   functions    for  the   Malaysian     Communications        and  Multimedia       Commission      and   to  establish   the   powers    and   procedures     for  the  administration of the Act, Section 3(1).   The Act has 11 Parts with 282 sections and these can be divided into five different  regulatory frameworks, namely, procedural (that also deals with the regulatory  authorities), economic, technical, consumer and social regulation.   

8.1           PROCEDURAL REGULATION  
Procedural   Regulation   comprises   parts   II,   III   and   V.   Part   II,   Ministerial   powers  and     procedures,     explains    the   four   types   of   Minister’s    powers.     Ministerial  directions,      determinations,      declarations      and    regulations      are   subordinate  instruments   that   can   be   issued   by   the  Minister   for   the   purpose   of   promoting  transparency, a register of all the instruments issued by the Minister must be kept  by the Commission (Sections 9, 12, 15).   The ministerial direction refers to the power of the Minister to issue directions to  the    Commission       with   respect   to  the  Commission’s        powers,    performance      of  functions and duties under the Act (Section 7). Nevertheless, the direction must  not be inconsistent with the Act.   The    ministerial    determination,      refers  to  the  power     of  the  minister    to  make  determinations       on   any  matter    specified   in   the  Act  without    consultation    with  licensees or persons (Section 10).   Ministerial     declaration     is  a   declaration    made     by   the   minister    concerning  conditions or benefits of licences (Section 13).

Lastly,   the Minister   has   the  power   to   make   regulations   on   recommendations   of  the Commission for the purposes of:  
(a)    The procedures for the Commission and the Appeal Tribunal in the exercise         of their powers and functions under the Act;  
(b)    The form of, and requirements for written authorisations, assignments and         licences granted or issued under the Act;  
(c)    The   procedures   for   the   assignment   of   rights   to   the   spectrum   or   numbers         including mechanisms for rate-based assignment;  
(d)    Any fees, charges or rates to be imposed;  
(e)    The   procedures   for   the   implementation   of   a   system   of   universal   service         provision including the quality of service standards;  
(f)    The     procedures      for  the   use   of   network     facilities,  network      services,         applications     services   and    content   applications     services   in  emergency     or         distress situations;  
(g)    The compounding of offences;  
(h)    Any redress, including compensation or penalties in respect of a breach of         or offence against any subsidiary legislation;  
(i)    Any matter for which this Act makes express provision; and  
(j)    Such other matters as are necessary for giving full effect to the provisions of         this Act and for their due administration [Section 16(1)].  

Another      important     element    in  the  workings     of  the  regulatory     regime    is  the  Appeal      Tribunal.    The    Appeal    Tribunal     under    Part   II  of  the   Act   may    be  established by the Minister and it shall convene on an ad hoc basis [Section 17(1)].  The primary function of the Appeal Tribunal is to review decisions made by the  Commission   upon   appeal   by   a   person   affected   by   such   a   decision   (Section   18).  The Appeal Tribunal shall consist of a chairman who is currently a High Court  Judge      and    at  least   two     other   members       who     have    knowledge       of   the  communications         and    multimedia      industry,    engineering,     law,    economics     or  commerce, or public administration [Sections 17(3)   and 19]. Any decision made  the Appeal Tribunal is final and binding on the parties to the appeal and is not  subject to further appeal (Section 18(2).   Part V deals with the powers and procedures of the Malaysian Communications  and     Multimedia      Commission.      The    Commission       has  power     to  issue   specific  instrument and mechanism which include directions, determinations, conduct a  public    inquiry    and   investigation,    gather   information,     monitor    and    provide    a                                              
report to the Minister on all significant matters relating to the services provided  and review all rules and regulations made under the Act. The Commission is also  a point of reference for dispute resolution.   One of the aims of the Act is to promote self-regulation in the industry. This is  done     through    the  introduction     of  voluntary    industry    codes.   These    are  codes  developed   by   industry   players   who   have   a   primary   function   to   formulate   and  implement       voluntary    industry    codes   to serve    as  a  guide   for  the   industry   to  operate. The formulation of the code may be done by the forum’s own initiatives  or upon request by the Malaysian Communication and Multimedia Commission  (MCMC)        (Section   95)   failing   which    mandatory      standards     will   be  imposed  (Section 104).   Under the CMA 1998, there are various forums which may each formulate their  own     voluntary     industry    codes    for  example,     the   technical   standards     forum  (Section    184),   access  forum     (Section   152),  consumer     forum    (Section    189)  and  content     forum    (Section   212).  Examples    of   registered    voluntary    codes    are  the  General   Consumer   Code   of   Practice  for   the   Communications   and   Multimedia  Industry Malaysia and The Malaysian Communications and Multimedia Content  Code      which    was    registered    on    17   October    2003    and    1  September       2004  respectively.   Four   bodies   has   been   designated   to   formulate   voluntary   industry  codes namely, the Communications and Multimedia Consumer Forum (CfM), the  Communications and Multimedia Content Forum (CMCF), the Malaysian Access  Forum and the Technical Standards Forum.   To promote transparency of the regulatory regime Section 81 of the Act requires  the Commission to maintain a register in both physical and electronic form, of all  matters   which   are   required   to   be   registered   under   the   Act   and   its   subsidiary  legislation.     The    register   may     be  accessed      at  http://www.mcmc.gov.my/  registers/registers.asp.   

8.2          ECONOMIC REGULATION  
Economic        regulation     actually     deals    with    matters     concerning      licensing,  competition   and   access   to   services.   Provisions   on   licensing   aims   to   control   and  monitor   the   entry   of   service   providers   (Communications   and   Multimedia   Bill  1998, Explanatory Statement Para 71). There are two types of licences under the  Act. A person may either apply for an individual licence [Section 27(1)] or operate  under   a   class   licence   that   the   Minister   has   granted   [Section   44(1)].   The   licence  type   is   divided   into   these   two   but   there  are   four   categories   of   services   for   each  type   of   licence,   network   service,   network  facilities   service,   applications   service  and content applications service.                                      

On     17th   September,       2002,   the   Minister    issued     class   licences   for   applications  service,   network   facilities   and   network   services.   At   the   same   time,   the   Minister  also issued the Ministerial Guidelines on class licences for network facilities and  network services (http://www.mcmc.gov.my).   Tables     8.1  and    8.2  show     the  type    of  licenses    and   category     of  services    under  the Act.                                        

Table 8.1: Type of Licenses          

Type of License                                    
Category of Service    
Individual Licence               

? Network Facilities                                       
? Network                                      
? Applications                                      
? Content Applications    
Class Licence                    
? Network Facilities                                      
? Network                                      
? Applications                                      
? Content Applications                                      

Table 8.2: Category of Services    Category of      Service                 
                           
Explanation   Network           
Provide     facilities  and   infrastructures    such   as   satellite  earth   stations,  Facilities         broadband fibre optic cables, telecommunications lines and exchanges, radio                     communications        transmission    equipment,     mobile    communications       base                     stations, and broadcasting transmission towers and equipment. They are the                     fundamental building block of the convergence model upon which network,                     applications and content services are provided.   Network            Provide    the   basic  connectivity    and   bandwidth     to  support   a  variety   of                     applications.    Network     services  enable   connectivity    or  transport   between                     different networks. A network service provider is typically also the owner of                     the network facilities. However, a connectivity service may be provided by a                     person using network facilities owned by another.   Applications       Provide   particular   functions   such   as   voice   services,   data   services,   content-                     based    services,   electronic   commerce      and    other   transmission     services.                     Applications services are essentially the functions or capabilities.   Content            A   special   subset   of  applications   service   providers    including   traditional  Applications       broadcast    services   and    newer   services   such   as   online   publishing    and                     information services.                                                 

During the transition period (1 April 1999 to 1 April 2000), the Communications  and    Multimedia      (Licensing)   Regulation    1999    was   passed.   This   regulation    has  since   been   repealed   and   substituted  by   the   Communications   and   Multimedia  (Licensing)      Regulation      2000    and     the   Communications         and     Multimedia  (Licensing) Amendment Regulation 2002. These regulations elaborate further on  matters concerning licensing including procedures for application.   Topic 2 of this part deals with competition regulation. Competition regulation in  the act lists down three clear prohibitions namely:  
(a)    Prohibition on anti-competitive conduct (section 133);  
(b)    Prohibition on entering into collusive agreements (section 135); and  
(c)    Prohibition on tying or linking arrangements (section 136).  

Section   133   prohibits   a   licensee   from   engaging   in   any   conduct   which   has   the  purpose of substantially lessening competition in a communications market. The  definition    of  substantial    lessening    competition     is  published    in  the  form   of  guidelines      issued    by    the   Commission        (Malaysian      Communications         and  Multimedia   Commission,   Guideline   On   Substantial   Lessening   Of   Competition  RG/SLC/1/00(1)            available      at     http://www.mcmc.gov.my/facts_figures/  codes_gl/index.asp). Besides these three clear prohibitions, the Act also provides  that the Commission may determine a licensee to be in a dominant position in a  communications market and may further direct this dominant player to cease any  conduct which, has the effect of substantially lessening competition in the market  (Section 137 and 139).   Guideline   on   Dominant   Position   in   a   Communications   Market   explains   what   is  meant     by   how    the  commission      will  determine     „dominant      position‰   for  this  purpose       (Available      at   http://www.mcmc.gov.my/facts_figures/codes_gl/  index.asp). The Commission has also issued an information paper on the process  for     assessing      allegation     for    anti-competitive       conduct       (Available      at  http://www.mcmc.gov.my/what_we_do/competition/competition.asp)                                 and  recently has published a document as part of a public inquiry on the assessment  of   dominance       in  the   communications        market     (http://www.mcmc.gov.my/  index.asp).   Topic 3 of Part VI deals with access to services. Provisions on access to services is  important   to   ensure   sharing   of   infrastructure   and   minimise   duplication   which  will in due course optimise the resources and increase co-operation amongst the  operators or service providers. It also ensures that the service providers can gain  access to the necessary facilities and services on reasonable terms and conditions.  This    is  to  encourage    downstream      activities   to  flourish,  thus   creating   a  more market environment, one that is able to offer consumers more choice and  value-for-money       services.   To   date,   the  Malaysian     Communications        and  Multimedia Commission has determined an ÂAccess ListÊ which sets out the type  of facilities or services that are subject to the access obligations under the Act.   The Commission has also issued various public enquiry reports and information  papers on this matter which includes the following:  
(a)   A Report on a Public Enquiry Under Section 65 of the Communications and        Multimedia Act 1998 on Access Pricing;  
(b)   A Report on a Public Enquiry Under Section 65 of the Communications and        Multimedia Act 1998 on Cost of Capital;  
(c)   A Report on a Public Enquiry Under Section 65 of the Communications and        Multimedia Act 1998 on Local Access Funding;  
(d)   A Report on a Public Enquiry Under Section 65 of the Communications and        Multimedia Act 1998 on Access List Determination;  
(e)   Guideline     on  Provision   of  Dial-Up   Internet  Access   Service   Using   New        Special Service Number Range 1508 A XXXXX; and  
(f)   Clarification      on    Mandatory       Standard      of    Access     Agreements        (http://www.mcmc.gov.my/what_we_do/access/access.asp).   

8.3         TECHNICAL REGULATION  

The    Communications      and   Multimedia     Act  1998   establishes  a  framework     to  promote     the  effectiveness  of  technical  regulation   by  facilitating  the  technical  interoperability of networks, to promote the efficient allocation of resources and  to promote the safety, security and integrity of network services and applications  services. Technical regulation can be divided into three parts:  
(a)   Spectrum assignment;   
(b)   Numbering and electronic addressing; and  
(c)   Technical standards.  

Let us now discuss this further.   Spectrum assignment is a new feature introduced by the Act. Under the previous  regulatory regime, providers are given radio communication licences (Regulation  3 of the Radio communications Regulation 1995).                          

There are 3 types of assignment:  
(a)    Spectrum assignments;  
(b)    Apparatus assignment; and  
(c)    Class assignment 

Section 157.   Assignment means the right to use the spectrum, numbers or electronic addresses  (Section 6) and this right which is enforced upon the licensees can be transferred  or dealt to another person. Section 162 gives power to licensees to transfer or deal  with    any   or  all  of  the  rights   assigned    under    spectrum    assignment.     Similar  provisions as regards to apparatus assignment is provided for in section 167.   Class   assignment  means   that   anyone   may   use   any   frequency   allocated   under  class   assignment     for  a  determined     specified   purpose    (Section   169). Spectrum  management involves providing a responsive  and flexible approach to meet the  needs of spectrum users, making adequate provision of spectrum for public and  community   services,   maximising   the   overall   public   benefit   derived   from   use   of  the spectrum by ensuring its efficient allocation, encouraging the use of efficient  wireless    technologies     and   practises   to  enable   operation    of  a  wide   ranges   of  services    with    an  adequate     quality   of  service,   supporting     the   CMA     policy  objectives of the Government and providing Malaysian views in the development  of   international   agreements   in   Radio   communications.   (http://www.mcmc.gov.  my/what_we_do/spectrum/index.asp).   Under section 172, the Commission may develop a spectrum plan which defines  how     the  spectrum     shall  be   used   and   the  methodology       for  assignment     and  reassignment   of   the   spectrum.   The  Spectrum   plan   is   a   vital   document   which   is  used to manage the allocation and assignment of our national band, as a reference  for   the   ITU   approved     allocation,   and   the   availability   of services    using   the  frequency       and     the    conditions     to    use    them.     (http://www.mcmc.gov.  my/what_we_do/spectrum/plan.asp).                  The    spectrum     plan    is  available     at  http://www.mcmc.gov.my/what_we_do/spectrum/plan.asp.   The Act requires the Malaysian Communications and Multimedia Commission to  develop     a  numbering      and   electronic   addressing    plan   setting  out   rules  about  matters relating to the use, transfer, assignment and portability of numbers and  electronic addresses (Section 179). In pursuant of this the Commission has issued  the   Numbering   and   Electronic   Addressing   Consultation   Paper   dated   26   April  2002.                                  

Finally, topic three deals with technical standards that has to be observed by the  service providers. Under the Communications and Multimedia Act 1998, it is an  offence    to   use  any   technical    equipment     or  systems    which    hinder    network  interoperability or compromise public safety (Sections 182 and 183).   The     Communications         and    Multimedia      Act    1998    allows    the    Malaysian  Communications and Multimedia Commission to designate one or more industry  forums and register certifying agencies or classes of certifying agencies (Section  186).    Under     the   Communications         and  Multimedia        (Technical    Standards)  Regulations   2000,   Regulation   27(1)   provides   that   “no   person   shall   undertake   or  conduct any activity in a designated skill area unless that person is certified”.   

8.4          CONSUMER REGULATION  
Do   you   know   what   consumer   regulation   is?   The   primary   purpose   of  consumer  regulation     is  consumer    protection.   Provisions    under    this  topic  are  quality   of  service,    required     applications     services,   resolution    of   consumer      disputes,  regulation on rates and universal service obligation. For the purpose of this Part,  the Commission designated a consumer forum which prepared a consumer code.  The General Consumer Code of Practice for the Communications and Multimedia  Industry      Malaysia     which     was    developed      by   the    Communications        and  Multimedia   Consumer   Forum   of   Malaysia   (CfM)   was   registered   on   17   October  2003.   The objective of the Code is to provide model procedures for:  
(a)    The adherence to consumer requirements;  
(b)    The handling of customer complaints and disputes;  
(c)    The   creation   of   an   inexpensive   mediation   or   process   other   than   the   court         and procedures for compensation of the customers in case of a breach of the         consumer code;  
(d)    The protection of consumer information;  
(e)    To endeavour to achieve the relevant national policy objectives of the Act;  
(f)    To   provide   benchmarks   for   the   communications   and   multimedia   service         providers for the benefit of consumers;  
(g)    To promote a high level of consumer confidence in service delivery from the         industry; and                                            

(h)    To provide guidelines for self-regulation among the industry (Section 5 of         the Consumer Code).   Other     than   the  code,   the  Commission       has  issued   various   determinations       on  mandatory standards for quality of service listed below:   (a)    Commission       Determination      on   the  Mandatory      Standards     for  Quality   of         Service (Broadband Access Service);   (b)    Commission       Determination      on   the  Mandatory      Standards     for  Quality   of         Service (Digital Leased Line Service);   (c)    Commission       Determination      on   the  Mandatory      Standards     for  Quality   of         Service (Public Payphone Service);   (d)    Commission       Determination      on   the  Mandatory      Standards     for  Quality   of         Service (Content Applications Services);   (e)    Commission       Determination      on   the  Mandatory      Standards     for  Quality   of         Service (Dial Up Internet Access Service);   (f)    Commission       Determination      on   the  Mandatory      Standards     for  Quality   of         Service (Public Cellular Service); and   (g)    Commission       Determination      on   the  Mandatory      Standards     for  Quality   of         Service (Public Switched Telephone Network Service).   The   Commission   has   also   published   a   guideline   on   complaints   handling   which  provides      for  the   process    for  complaints      handling.    According      to  the   rate  regulation,   Section   197   provides   that   rates   may   be   set   in   accordance   with   the  market rates. The Communications and Multimedia (Rates) Rules 2002 came into  effect 1 March 2002.   One important part of this section is the provision on universal service. Universal  service    is  an  obligation   imposed     by   the  government      on  service   providers    to  promote the widespread availability and usage of services throughout Malaysia  by   encouraging   the   installation   of   these   services   in   underserved   areas   and   for  underserved groups within the Community (Section 202). This service obligation  ensures basic services are available or accessible by the public regardless where  they are.   A   Report   on   a   Public   Inquiry   on   a   System   of   Universal   Service   Provision   was  issued by the Commission on 12th March, 2001 and in the report the method on  how   universal   service   was   to   be   implemented   was   laid   down   and   the   terms  „underserved areas‰ and „underserved groups‰ were defined.                                      

8.5           SOCIAL REGULATION  
Social   regulation   is   mainly   concerned  with   content   application   services.   Under  this part (Part IX), three types of content applications services is mentioned. They  are   content   applications   service,   closed content   applications   service   and   limited  content   applications   service.   A   closed   content   applications   service   is   exempted  from any provisions under Part IX (Section 207) and a limited content application  which   is   a   service   of   a   limited   appeal   due   to   its   limited   target   and   availability,  may   be   subject   to   a   class   licence   but   otherwise   exempted   from   any   provision  under     this  Part  (Section   209).  Section  211    of  the  CMA     provides    that  content  should     not  be   indecent,   obscene,    false menacing,      offensive   in  character   with  intent    to  annoy,    abuse,   threatens   and   harass.    The   content   code,   which    was  registered   on   1   September   2004   explains   further   the   prohibition   of   section   211.  The   content   code   is   available   at   http://www.cmcf.org.my   (Content   Forum)   or  http://www.mcmc.gov.my                (Malaysian      Communications          and     Multimedia  Commission).               

SELF-CHECK 8.1         
1.  Who   is   regulated   under   the   Communications   and   Multimedia   Act             1998?         
2.  How many license types are there under the Communications and             Multimedia Act 1998?         
3.  Name the regulatory authorities under the Act.            

ACTIVITY 8.1        Access the content code and discuss with your coursemates the prohibition       under Section 211 of the Communications and Multimedia Act 1998.                                            

The   Communications   and   Multimedia   Act   1998  regulates   three   traditionally      distinct industries.  
? The      Malaysian     Communications       and    Multimedia     Commission      is  the      regulatory authority responsible for this industry.  

? The Act is divided into five regulatory frameworks i.e. procedure, economic,      technical, consumer and social.   Individual Licence                             Voluntary Industry Code   Malaysian Communications and  Multimedia Commission