Copyright Law Revision Feared to Hamper Innovation and Digital Economic Growth

Illustration of rejection of the revision of the Job Creation Law (AI)

JAKARTA - The plan to revise the Copyright Law is considered to have the potential to create new challenges for the creative industry and the digital ecosystem if it is not formulated carefully. A number of academics and creative economic actors remind that strengthening copyright protection must maintain a balance with the needs of innovation, collaboration, and digital economic growth.

The academic of the University of Putra Indonesia YPTK Padang, Devi Syukri Azhari, assessed that the purpose of revising the Copyright Law to provide stronger protection for creators is indeed worthy of appreciation. However, according to him, a number of provisions that are too strict can actually increase business costs and hinder the development of the creative sector.

"First of all, it must be admitted that the intention behind the revision of the Copyright Law is a good thing. Nevertheless, in practice in the field, exclusive rights have the potential to limit the dissemination and modification of works so that the cost of using research, software, or educational materials becomes high. As a result, the innovation of local creative economic actors can be hampered," said Devi in his statement, Tuesday, June 16.

According to him, one of the most likely impacts is the increase in compliance costs for companies, digital platforms, MSMEs, startups, and independent creators. More complex provisions related to licenses, content use, and royalty payments have the potential to add to operational burdens, especially for small business actors who have limited resources.

This condition is feared to narrow the growth space for creative economic actors who have been one of the driving forces of Indonesia's digital economy.

In addition, the development of artificial intelligence or Artificial Intelligence (AI) technology is also considered to require clear legal certainty in the revision of regulations. The lack of clarity regarding the limits of the use of copyrighted works for AI development has the potential to create uncertainty for investors and technology companies.

As a result, a number of business actors may choose to postpone investments or business expansion until there is clarity regarding the obligations and legal risks that must be borne.

Devi assessed that the modern digital industry today is very dependent on the practice of legal reuse, adaptation, transformation, and distribution of content. Therefore, the fair use space needs to be kept in mind so as not to hinder creativity and innovation.

"If the reasonable or fair use space is too limited, the cost of producing content and developing digital products can increase significantly," he said.

Similar impacts can also be felt in the education, research, and technology development sectors. If access to copyrighted materials becomes more expensive or difficult to obtain, the cost of research and human resource development can increase.

In the long term, this condition is feared to slow down the transfer of knowledge and reduce the rate of national innovation which is the foundation of digital economic growth.

For MSMEs and startups, additional administrative obligations can also be an obstacle to entering the market. New business actors who do not have adequate legal and financial capacity have the potential to have difficulty meeting various license and compliance requirements.

This situation is considered to reduce the dynamics of competition and increase the chances of market concentration, where large companies are easier to meet the requirements than small and medium-sized businesses.

From the consumer side, the increase in licensing, production, and compliance costs also has the potential to drive up the price of digital services, software, and other creative products. If it occurs widely, this condition can affect people's purchasing power and reduce consumption of domestic creative products.

Therefore, Devi encourages the discussion of the revision of the Copyright Law to be carried out openly and to involve all stakeholders, including creative industry players, digital platforms, academics, and the creator community.

"This is something we didn't expect. We hope that the revision of the Copyright Law will really be carried out through a thorough and not rushed public consultation," he said.

According to him, effective copyright protection not only depends on stricter regulations, but also requires increased digital literacy, strengthening collaboration between stakeholders, and the use of technology to support a copyright protection system that is adaptive to the development of time.

With a balanced approach, the revision of the Copyright Law is expected to be able to protect the rights of creators while maintaining the climate of innovation, the growth of the creative industry, and the sustainability of the national digital ecosystem.