Executive Summary

Key insights and market outlook

The Indonesian government has issued a new regulation requiring businesses to pay royalties for the use of music in commercial public spaces, such as restaurants, cafes, and hotels ¹

². This move aims to protect the economic rights of music creators, copyright holders, and related parties. The regulation, announced by the Director-General of Intellectual Property, Hermansyah Siregar, will be enforced through the National Collective Management Institution (LMKN) ¹².

Full Analysis

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Deep Dive Analysis

Indonesia Introduces New Royalty Payment Regulations for Commercial Music Use

Protecting Music Creators' Rights

The Indonesian government has taken a significant step towards protecting the rights of music creators and copyright holders with the introduction of a new regulation requiring businesses to pay royalties for the use of music in commercial public spaces ¹

². This move is expected to have a positive impact on the music industry, ensuring that creators and copyright holders receive fair compensation for their work.

Scope of the Regulation

The new regulation applies to all commercial public spaces, including restaurants, cafes, hotels, shopping centers, entertainment venues, and transportation modes ¹

². Any business that uses music to support their commercial activities will be required to pay royalties through the National Collective Management Institution (LMKN) ¹².

Enforcement and Compliance

The regulation will be enforced by the LMKN, which will be responsible for collecting and distributing royalties to music creators and copyright holders ¹

². Businesses that fail to comply with the regulation may face penalties and fines.

Impact on the Music Industry

The introduction of this regulation is expected to have a significant impact on the music industry in Indonesia ¹

². It will provide a new source of income for music creators and copyright holders, and will help to promote the development of the music industry in the country.

References