Read New Talk! Royalty Play Song Has Been Arranged Since Long Ago, Here's What It Says

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JAKARTA - Government Regulation (PP) Number 56 of 2021 concerning the Management of Song and/or Music Copyright Royalties signed by President Joko Widodo was widely discussed recently.

In fact, Director General of Intellectual Property of the Ministry of Law and Human Rights Freddy Harris said, the imposition of royalties for everyone who uses songs or music commercially and or in public services has been regulated since long ago.

These royalties are granted to the copyright owner of the song and music, as well as the owner of related rights such as the producer of the song.

"This REGULATION actually confirms Articles 87, 88, and 89 of the Copyright Law (Law No. 28 of 2014). There is an LMKN (National Collective Management Agency) that attracts such royalties," Freddy said in a virtual discussion, Friday, April 9.

Then, the amount of royalty tariff is also still following the Decree of the Minister of Law and Human Rights (Kepmenkumham) Number HKI.2.OT.03.01-02 year 2016.

However, there is a possibility of a change in the amount of the new royalty rate with a number of considerations. Because, a number of activity managers charged royalties of the song considers the amount of the tariff too expensive.

"Therefore, sectors such as karaoke owners, restaurants, hotels, cafes, please just negotiate. If agreed, the ministerial regulations will be changed," he said.

Here are the current rates:

1. Royalty rate for organizing seminars and commercial conferences is Rp500,000 per day.

2. Restaurant and café royalty rates are determined based on each seat per year at a price of Rp60,000 for creator royalties and related rights royalties.

3. The royalty rate of pubs, bars and bistros is determined every square meter per year at a rate of Rp180,000 per square meter per year for creator royalties as well as related rights royalties.

4. Karif nightclub and discotheque royalties are determined per square meter per year, with the amount of Rp250,000 per square meter per year for creator royalties, as well as Rp180,000 per square meter per year for related rights royalties.

5. The amount for music concert royalties is 2 percent of gross ticket sales and 1 percent of free tickets.

6. The amount for free music concert royalties is 2 percent of music production costs.

7. The amount for royalties on aircraft, buses, trains, and ships is the number of passengers multiplied by 0.25 percent of the lowest ticket price multiplied by the duration of music multiplied by the percentage of the level of music usage.

8. Exhibition and bazaar Rp1.5 million per day

9. Cinema Rp3.6 million per screen per year

10. Call waiting tone Rp100,000 per phone call each year

11. Banks and offices Rp6 thousand per square meter every year12. Count for owners of supermarkets, supermarkets, malls, shops, distributions, beauty salons, fitness centers, sports arenas and showrooms count:

• The first 500 square meters of space is charged Rp4,000/meter for songwriter royalties and Rp4,000/meter for related rights royalties

• The next 500 square meters will be charged Rp 3,500/meter for songwriter royalties and Rp 3,500/meter for related rights royalties

• The next 1,000 square meters are charged Rp 3,000/meter for songwriter royalties and Rp 3,000/meter for related rights royalties

• The next 3,000 square meters are charged Rp 2,500/meter for songwriter royalties and Rp 2,500/meter for related rights royalties

• The next 5,000 square meters are charged Rp 2,000/meter for songwriter royalties and Rp 2,000/meter for related rights royalties

• The next 5,000 square meters will be charged Rp 1,500/meter for songwriter royalties and Rp 1,500/meter for related rights royalties

13. Leisure centres 1.3 percent of ticket prices multiplied by the number of visitors within 300 days multiplied by the percentage of music usage

14. Free indoor recreation center Rp6 million per year

15. For hotel owners and hotel facilities the amount of royalties is

• The number of rooms 1-50 is subject to a royalty rate of RP2 million/year

• The number of rooms 51-100 is subject to a royalty rate of RP4 million/year

• The number of rooms 101-150 is subject to a royalty rate of RP6 million/year

• The number of rooms 151-200 is subject to a royalty rate of Rp8 million/year

• The number of rooms above 201 is subject to a royalty rate of RP12 million/year

16. Resorts, exclusive hotels and boutique hotels are subject to a lump sum royalty rate per year of RP1.6 million.

17. For Karaoke Business the amount count is as follows:

• Karaoke without room (hall) IDR20,000 per room/day

• Family karaoke IDR12,000 per room/day

• Karaoke Exclusive IDR50,000 per room/day with a calculation of 50 percent for copyright and 50 percent for related rights.

•Karaoke cube calculation for copyright and related rights each Rp300 thousand per cube / year.

18. Calculation of radio broadcasting institutions that is 1.15 percent of advertising revenue or subscription dues in the previous year.

19. For non-commercial radio and RRI is subject to royalty fee of Rp 2 million per year.

20. Calculation of television broadcasting institutions that is 1.15 percent of advertising revenue or subscription dues in the previous year. With the record, payments to television broadcasters are divided into 3

categories are:

A. Music television is subject to a 100 percent royalty rate.

B. Information television and entertainment are subject to a 50 percent royalty rate.

c. Television news and sports are subject to a 20 percent royalty rate.

21. For non-commercial local televisions are charged a royalty rate of Rp10 million per year. With a share count of Rp 6 million for copyright and Rp 4 million for related rights.