ACTION Responds To LMKN Commissioner's Statement Regarding Direct License

JAKARTA - The All-Indonesian Composite Association (AKSI) responded to Marcell Siahaan's statement as Commissioner of the National Collective Management Institute (LMKN) regarding the application of direct license in terms of song and music royalties.

Through an official Instagram account, ACTION said what Marcell Siahaan said was not true. The association consisting of the songwriters conveyed four points in their arguments.

"DIRECT LICENSING IS DIFFICULT. In the implementation that members of THE ACTION have done, it is even very easy. AND TRANSPARENCY. The creator immediately gets his rights, users know very well that the Creator really accepts his rights," wrote the Instagram account @aksibersatu on the first point of his argument, Friday, January 12.

Then at the third point, the ACTION does not agree if the direct license system can be used as a tool for strengthening' users with a royalty value made by each songwriter.

The Direct Licensing system proposed by ACTION is standardized so that the tariff is SERGAM, which is 10 percent of the Artist Fee/payment, divided by the number of songs (pro-even). If the song performed is 10 in one show, only 1 percent is paid by the artist. The artist is 100 million, the creator of the song is 1 million. Logic right?!," wrote ACTION.

Furthermore, in the third point, ACTION said that the percentage difference Marcell said could be misleading. They highlight the percentage based on production costs and ticket sales.

The difference is 2 percent and 10 percent. What @marcellsiahaans means is that it can be misleading, because it is different. The system run by @lmkn_id for the withdrawal of LIVE PERFORMANCE royalties is 2 percent of the budget for production or ticket sales. If the budget for event production is 500 million, the 2 percent is 10 million. But how do we know event organizers are transparent in providing production budgets? Or ticket sales? It's very easy to manipulate," the point reads.

Dan apakah LMKN selama ini check bagaimana besar budget produksi para penyelenggara? NOTATAN : Selama bertahun-tahun sistem yang dijalan LMKN ini TIDAK BERJALAN. Banyak Pembuasan lagu (hits) mendapat 0 Rupiah dari sistem ini, lanjutnya.

AKSI also questioned LMKN's ability to ensure that the system run so that it is fulfilled by music concert organizers, especially prosecution if there are organizers who do not pay royalties properly and correctly.

So far, the Direct Licensing system run by ACTION members independently has been running smoothly and has brought good changes, although the 10x system as mentioned at point 2 has not been implemented. With the DDL (Digital Direct Licensing) system which will be implemented soon, of course, it will be much better," concluded ACTION in its fourth point of argument.