Maximizing the Economic Potential of the Indonesian Music Industry through Government Regulation Number 56 of 2021
The rapid development of the digital music industry has caused several impacts on musicians, songwriters, copyright holders, and related parties in terms of gaining royalty for their copyright works. One of the impacts is the royalty revenue of copyrighted works that have not been maximized.
Therefore, the Indonesian government, in this case, the Directorate General of Intellectual Property (DGIP) – Indonesian Ministry of Justice and Human Rights, needs to socialize Government Regulation Number 56 of 2021 concerning Management of Copyright Royalty in the Sectors of Songs and/or Music.
Government Regulation Number 56 of 2021 concerning Management of Copyright Royalty in the Sectors of Songs and/or Music is an implementing regulation from Law Number 28 of 2014 concerning Copyright. This Government Regulation stipulates in detail the use of commercial public services both in analog and digital form on the economic rights of the creators/copyright holders, performance actors, and producers.
Furthermore, this Government Regulation also regulates commercial public services which include: restaurants, cafes, pubs, bars, bistros, nightclubs, and discotheques; music concerts; airplanes, buses, trains, and ships; exhibitions and bazaars; hotels that use songs and/or music for commercial purposes to make a mandatory payment of musical royalties to the National Collective Management Organization (LMKN/NCMO) which further will be distributed to the creators/copyright holders and related right holders through the Collective Management Organization (LMK/CMO).
This Government Regulation also regulates the information of the data center of the songs and/or music on the hakcipta.dgip.go.id page. This data center is managed by DGIP and can be accessed by the NCMO, creators, rights holders, related rights holders, and commercial users.
Meanwhile, for micro, small and medium enterprises (MSMEs), this Government Regulation also stipulates the enactment of royalty tariff relief to be adjusted to the financial capacity of MSMEs actors.
Government Regulation Number 56 of 2021 is expected to be able to optimize the collection and distribution of royalties for the use of creations and related rights products in the sectors of songs and/or music so that the rights holders can obtain their economic benefits in the music industry.
On April 25, 2022, the Ministry Regulation Number 9 of 2022 has been enacted to implement Government Regulation Number 56 of 2021 concerning Management of Copyright Royalty in the Sectors of Songs and/or Music. The regulation stipulates the changes in the position and election procedure of NCMO commissioners for the creators and related rights.
The changes in the regulation are expected to improve the quality of royalty management in the sectors of songs and/or music to provide maximum benefits for the creators, copyright holders, and related rights holders. The collection of royalties from users is expected to be carried out professionally, accountably, and transparently.
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Source: www.dgip.go.id
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Nugra & Partners – Intellectual Property Consultant
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