Indonesia continues the discussion on the Royalties Management Regulation in the Literacy/Books Sector
In the current digital era, the development of the literacy sector is quite advanced. For instance, the public can easily enjoy or download literacy or books through digital media.
However, as a challenge, the literacy works can be easily pirated so that the authors and related parties do not receive royalties as they should. Not all authors can gain economic benefits from their literacy works. This is because the royalty’s collection system and appreciation for literacy works have not been well regulated by the state.
Therefore, the Directorate General of Intellectual Property (DGIP), Indonesian Ministry of Justice and Human Rights together with stakeholders re-discuss the Regulation Draft of the Minister of Justice and Human Rights (Permenkumham Draft) on the Royalties of Literacy Sector. There should be a clear legal basis for the management of royalties, especially in conducting the royalty collection and distribution from the duplicating of digital or virtual literacy works.
The DGIP is formulating the Permenkumham Draft on the Royalties of Literacy Sector to clarify the royalty management of the literacy works from Law Number 28 of 2014. The Permenkumham Draft has gone through several discussions, it is now in the process of harmonization with other applicable provisions.
This discussion is expected to be able to provide new input or ideas to the Permenkumham Draft so that this legal basis will not be an obstacle to educational, research, and science development.
As information, royalty management in Indonesia has a legal basis, namely Government Regulation Number 56 of 2021 concerning Management of Copyright Royalties in the Sector of Songs and/or Music. This regulation is an implementing regulation from Law Number 28 of 2014 concerning Copyright for strengthening the implementation of the economic rights protection of the creators/copyright holders and related-rights product owners.
Meanwhile, the government is currently formulating the regulation of literacy/books royalty collection through the National Collective Management Organization (NCMO/LMKN). The government is assisted by the Indonesian Publishers Association (IKAPI), Collective Management Organization in the Literacy/Books Sector (PRCI), and stakeholders in the literacy/books sector that conduct studies on new forms of book piracy on the e-commerce platform.
Other steps that must be taken are to improve the quality of regulations, namely revising the existing regulations, as well as delivering massive socialization through e-media, and coordinating with related ministries/institutions. The technical provisions under the law must be underlined, for instance, on how the Collective Management Organization (CMO) conducts the royalty collection by a suitable method.
Permenkumham Draft is also expected to be able to regulate literacy/books in the education sector. Article 44 Law Number 28 of 2014 concerning Copyright states that a person may use the literacy/books for educational purposes as long as it does not inflict financial loss for the creators/authors. Many people misinterpret Article 44 by duplicating literacy/books for educational purposes. However, several provisions must be regulated when a person/party duplicates literacy/books more than one copy so that the creators/authors can gain royalties from their works.
Collection and distribution of royalties are currently managed by PRCI. Permenkumham Draft is also expected to be able to adapt to the development of technology, namely by managing literacy/book works in digital forms: e-books, blogs, or applications.
However, the regulation of royalty collection and distribution in the literacy/books sector will certainly not be effective without public awareness of copyrighted works. The authors/creators will not gain economic benefits from the copyrighted works if the public doesn’t have adequate awareness of royalty payments.
Moreover, the government needs to increase the awareness of authors/creators to join CMO (PRCI) so that they can easily manage their royalty collection and distribution.
Meanwhile, The Federation of Indonesian Musicians Union (FESM) hopes that this Permenkumham Draft can clarify the existing articles. This effort is very important to clarify the provisions in the Copyright Law, especially regarding articles of exceptions and limitations. In line with the FESM, PRCI hopes that this Permenkumham Draft can benefit the authors/creators and publishers.
This Permenkumham Draft is expected to be able to respect and recognize the existence of authors/creators and protect their economic rights. Appreciation for creative works and protection of economic rights will encourage new works and creativity that leads to macro creativity.
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Source: www.dgip.go.id
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Nugra & Partners – Intellectual Property Consultant
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