The Creative Economy Proposes Music License System Update, Blank License Accompanied By Direct License

The Ministry of Creative Economy (Kemenekraf) together with the Ministry of Law (Kemenkum) are reviewing policy reform related to copyright protection, especially regarding licensing and royalty payments.

Through a press release on Monday, April 28, it was stated that one of the important findings of the study that had been carried out was the existence of an arrangement that greatly opened the width of the space for multiple interpretations which resulted in unclear regulations in its application.

In some cases, it has even created various confusion among art actors, especially those in the field of music in recent times.

Responding to this, the Director of Creative Economy Music, Mohammad Amin, has proposed an update to the music licensing system by implementing a hybrid scheme, namely implementing a blendet license system side by side with the direct license system.

Both use digital technology-based systems through verified digital platforms, so that the royalty management process guarantees accuracy, transparency, and accountability.

Blanket license system can be applied for licenses for the use of recording works or phonograms or videograms, while direct licenses are applied in a volatile manner for live performance or music concerts.

In addition, the Ministry of Creative Economy also encourages the digitization of royalty management by the Collective Management Institute (LMK), so that it is expected to create a system that is transparent, accurate, accountable, and reliable, as is the standard that must exist in digital technology-based systems.

This system is expected to ensure more effectiveness and efficiency in the application of the licensing system, because it can eliminate or reduce the number of middlemans (intermediaries) who have the potential to reduce the income of art actors.

The Ministry of Creative Economy also expressed its willingness to help formulate a license system and a fairer, transparent, and accountable royalty payment system.

With this new policy, Kemenekraf hopes that the Indonesian music industry ecosystem will become healthier, more transparent, developing, and provide decent and fair incentives for creative economy actors.