Ad agencies call for changes to rules
PETALING JAYA: After unsuccessful appeals by the Association of Accredited Advertising Agents Malaysia (4As) to the General Insurance Association of Malaysia (PIAM) and the Malaysian Takaful Association (MTA) for the removal of Clause 2.14 in their pitch terms and conditions, 4As is now taking the matter to a higher level.

This time, the association is appealing to both the chairpersons of PIAM and MTA to consider the removal of the contentious clause which is deemed unethical.

Clause 2.14 within the request for proposal (RFP) documentation from these associations reads: “All supporting materials and other documentation submitted with the response will become the property of the PIAM and MTA unless otherwise requested by the proposers at the time of submission.”

An RFP is a briefing document from an advertiser that is interested in procuring from advertising agencies a customised communications solution for a given assignment.

It is issued to advertising agencies for them to submit their detailed plans, strategies, creative ideas, designs and pricing proposals based on the specifications outlined in the document.

Khairudin Rahim, 4As chief executive officer, said the advertising industry deems the clause unfair as it would lead to what is effectively the take over of an agency’s ideas and work in an unethical, oppressive and highly prejudicial manner.

It would be tantamount to a demand for free ideas, Khairudin told StarBiz.

“Unless otherwise requested in writing and objected to by the advertising agency before the proposals are submitted, both associations through this clause are unethically demanding ownership and retention of intellectual property,” he added.

Khairudin said, earlier three written appeals for the removal of the clause from future RFP and pitch documents directed at advertising agencies were made to the heads of MTA and PIAM, but fell on deaf ears.

The appeals were made on Aug 9, Aug 29, and again on Oct 26 last year. With no forthcoming official response, the 4As is therefore left with the conclusion that Malaysia’s foremost takaful and general insurance trade bodies, despite knowing their demand is unethical, feel entitled and wish to continue making this their standard when dealing with advertising agencies, he added.

The stance contradicts their association’s stated goals of wanting to build trust, positively promote the image of, foster confidence in and raise professionalism within the takaful and general Insurance industry.

Khairudin said he hopes the chairmen of both the associations will address the situation and do what is right in a bid to remedy the trust deficit.

As of press time, PIAM and MTA could not be reached for comment.

PIAM and MTA last year issued an RFP for advertising agencies to submit proposals for a consumer education campaigns on the phased liberalisation of motor and fire insurance tariffs.

Khairudin reiterated that Clause 2.14 is oppressive and highly prejudicial to advertising agencies who are unsuccessful as they would not in any future bid or project rely on their intellectual property rights. Member agencies of the 4As have and will continue to decline pitch invitations which contains conditions and clauses similar to this.

“The inclusion of this clause by the PIAM and MTA is especially disappointing given the 4As repeated calls for advertisers to remove unfair and unethical intellectual property retention clauses from procurement documents.

“It is tantamount to a demand for free ideas, contradicting core business principles and global norms of business dealings with the creative industry,” he added.

The 4As Malaysia, formed in 1971, is the Malaysian industry’s foremost body representing and promoting the value of advertising agencies in the marketing communications industry to advertisers, media, suppliers, government and the public.

The organisation encompasses more than 50 homegrown and multinational member agencies and agency brands, involved in brand strategy and marketing communications.
Advertising & Media
PETALING JAYA: After unsuccessful appeals by the Association of Accredited Advertising Agents Malaysia (4As) to the General Insurance Association of Malaysia (PIAM) and the Malaysian Takaful Association (MTA) for the removal of Clause 2.14 in their pitch terms and conditions, 4As is now taking the matter to a higher level.