Call Label And Publisher Fix Unreasonable Song Tariffs, LMKN Asks Authority To Withdraw Synchronization Royalties

Record label illustration (unsplash)

JAKARTA - The National Collective Management Institute (LMKN) stated that there were problems in collecting royalties related to the adaptation, arrangement, or transformation of song/music works.

The problem was revealed by the LMKN Commissioner, Ahmad Ali Fahmi, during a Public Hearing Meeting (RDPU) with the Legislation Body (Baleg) of the DPR RI regarding the Copyright Bill last week.

Fahmi said problems often arise when it comes to synchronization rights, which often do not concern the public.

He gave an example of where synchronization problems occur when someone creates video content which then involves a song without permission from the Creator.

"Unknowingly he has violated exclusive rights rather than Creators to synchronize. Then this video was announced and then questioned by the Copyright holder," Fahmi said, citing YouTube TVR Parliament, Tuesday, December 2.

Fahmi continued, regarding synchronization rights, LMKN could not withdraw royalties, but by a publisher or label.

"The problem is that these publishers or labels then apply rates that are completely out of order," said Fahmi again.

According to Fahmi, there are fundamental differences in the withdrawal of royalties made by LMKN with a public or label.

LMKN withdraws royalties based on previously agreed rates, which are then contained in the regulations. Meanwhile, the publisher and label determine the rates for using songs unilaterally.

"For example, we used a song for only one minute, suddenly we were billed hundreds of millions and even 1 to 2 billion. Well, this creates a commotion," said Fahmi.

In order to strengthen institutional substance while preventing practices that are considered unfair, Fahmi suggested that the revision of the Copyright Law stipulate that the withdrawal of synchronization royalties could be carried out by LMKN.

"Because technically LMKN also has sufficient ability or capability if indeed we have to apply a synchronization license, so there are no more problems when in the field," he added.

In addition, Kawendra Lukistian as a member of the Legislative Council of the Republic of Indonesia highlighted the importance of the state's presence in the matter.

"It seems that the state must be present to bridge all of this, making it clear the position of a copyright circulating in Indonesia, which is being screened in Indonesia, which utilizes the Indonesian market, and those in Indonesian territory," said Kawendra.

He mentioned the importance of socializing the tariff for the use of song/music works. "Don't let it not be socialized, (later) friends who work are caught in a trap, as if they have been caught in a Batman trap, suddenly get tens of billions of demands," he said.

Kawendra also admitted that he received complaints from one of the creative economy players who did not get the right socialization in the use of song/music works, so he had to deal with royalty problems.

"So there must be a clear position, we will pull the position of the song first," he said. So, how do we pull the common thread, all the songs that are circulating, playing, using the Indonesian market, being in Indonesian territory, even songs from outside, there must be a clear position. Is it all the object of LMKN? Or like what? To be clear.

"It's better if my advice is, what kind of technical details will we include later. Just say if you ask permission to use one song in one of the visual productions, the fare is a lot of rupiah. If he forgets to register, he will be fined three times. For example, that's not a burden. It doesn't suddenly become 200 times like the demands made by certain publishers," concluded Kawendra.