DJKI Affirms No Creator Permit To Play Songs While Paying Royalties Through LMKN

Ir. Razilu, Director General of Intellectual Property (Instagram @razilu_official)

JAKARTA - The Directorate General of Intellectual Property (DJKI) of the Ministry of Law stated that direct permission from the creator or copyright holder is not needed when it comes to performing rights.

It was stated that Law no. 28 of 2014 concerning Copyright (UUHC) has regulated that every use of songs for commercial purposes obtains permission from the creator or copyright holder, but to facilitate licensing, the Law has mandated to form a National Collective Management Institute (LMKN) as a one-door intermediary.

Based on article 23 paragraph (5) and article 87 UUHC, business actors or users of Public Services are Commercial, it is enough to pay one-time royalties centrally, which are then distributed to creators and owners of related rights (singers, musicians, producers of phonograms) through the Collective Management Institute (LMK).

"The obligation to pay royalties has been strictly regulated in Government Regulation Number 56 of 2021 concerning Royalty Management. Article 9 paragraph (1) explains that anyone who uses songs or music in public services is commercial, must apply for a license through LMKN," said Razilu as Director General of Intellectual Property, citing DJKI's official website, Thursday, June 19.

"This applies to various forms of song utilization, ranging from those played in restaurants, cafes, pubs, discotheques, to music concerts," he continued.

The royalties that must be paid have also been clearly determined in the Decree of the Minister of Law and Human Rights Number HKI.2.OT.03.01-02 of 2016.

In a music show, royalties that must be paid are 2% of gross ticket sales and an additional 1% of free tickets, or 2% of production costs for ticketless concerts.

It was also emphasized that the responsibility of payment lies with the organizers of the event or the owner of the place of business, not the singer or musician unless they also act as organizers.

By paying royalties to LMKN, a direct permit from the creator or copyright holder is no longer required, because legally the right has been fulfilled. This provides clarity, convenience, and legal certainty for business actors.

If there is a dispute in the royalty payment process, settlements can be reached through mediation as stipulated in Article 95 paragraph (4) of the Copyright Law. This procedure is provided so that all parties can resolve differences fairly and without prolonged conflict, "concluded Razilu.