The Indonesian government just passed Government Regulation No. 56 of 2021 regarding Royalty Management of Copyrights of Songs and/or Music that came into force as of 31 March 2021. This regulation was enacted in order to provide protection and legal certainty for creators, copyright holders and related rights owners to the economic rights of songs and / or music as well as any person who makes commercial use of songs and / or music, notably to clarify what is meant by commercial public services which are subject to copyright royalties.

Optimising the management function of copyright royalties

This regulation was also enacted to optimise the management function of copyright royalties for the use of Works and Related Rights products in the field of songs and / or music in accordance with the provisions of Article 87, Article 89, and Article 90 of Law Number 28 Year 2014 concerning Copyright.

Collection of royalties

To obtain the economic rights, each Creator, Copyright Holder, Related Rights owner have to become a member of the Collective Management Organisation (“CMO”) in order to be able to collect fair compensation from users who utilise Copyright and Related Rights in the form of commercial public services. CMO then withdraws and collect from users and distribute royalties to creators, copyright holders, or related rights owners.

The CMO may collect royalties from public services that has commercial functions as mentioned below:

•  Seminar and commercial conferences;
• Restaurant, café, pub, bar, bistro, night club, and discotheque;
• Music concert;
• Aeroplane, bus, train and sea craft;
• Exhibition and Bazaar;
• Cinema;
• Ring back tone;
• Bank and offices;
• Stores;
• Recreation centre;
• TV station;
• Radio station;
• Hotel, hotel room, and hotel facilities; and
• Karaoke

 Data Centre accessible to the public

Further, the government is planning to build and manage a Data Centre for Songs and/or Music that can be accessed by public which will be based on System Information on Songs and/or Music (SILM). Therefore, the Data Centre is expected to raise awareness in copyrighted songs and/or music and optimise the collection of royalties from the commercial public services.

If you have any questions or require any additional information, please contact Endra Agung Prabawa and Ajeng Yesie Triewanty of Roosdiono & partners (a member of ZICO Law).

This alert is for general information only and is not a substitute for legal advice.