Lack Of Transparency And Accountability, The Largest Anxiety Of Retail Business Pays For Music Royalties

The dynamics about music royalties that occurred in Indonesia not only had an impact on singers and songwriters, but also other parties such as music business players to the further, retail businesses. Hotels, restaurants, cafes and cinemas also feel unrest regarding the royalty payments imposed by LMK-LMK.

In recent months, a number of business owners have been afraid to play songs in their place. Even those who enter the public domain cannot be played for free. Many questions arise from the business side.

This happened because the withdrawal of music royalties from related LMK allegedly used a license plate system. This means that entrepreneurs pay licenses to play all songs, which do not accurately pay for any songs that are played.

"So actually business people don't mind paying royalties, but transparency and accountability must be fulfilled. So far, they have paid only for the sake of a piece of paper in the form of a license, and the license itself cannot immediately increase income or support more efficient music management in business places," said Jerry Chen, CEO of USEA Global in a discussion session around royalties with a number of media, November 17.

USEA Global itself is a global audio technology company that provides a cloud-based centralized music management platform, with the ability to regulate music playback, scheduling, promos, and track songs in real-time to ensure a consistent and legal audio experience across business outlets.

Jerry also highlighted the transparency of the withdrawal of musical works that are in the realm of public domains, which are categorized as unclaimed royalty. As is widely reported, the figure of IDR 24 billion in this category is recorded, whose management is not openly explained.

"It's like we're forced to eat something we don't like and pay for it. The 8 percent unclaimed royalty is said to be for empowering and optimizing music programs. Then, where is 98 percent? We never know," he added.

As a service provider that helps business actors manage royalty payments, USEA Global hopes that there will be more discussion rooms around royalties involving business people. They, as one of the largest royalty contributors, need to socialize rights and obligations, as well as transparency which is the cause of the trust issue between the two parties.