Pioneering Progress: Indonesia Champions Global Royalty Governance Proposal at WIPO

Indonesia’s proposal to the World Intellectual Property Organization (WIPO) to develop international legislation on royalty management has been formally included in the agenda of the 47th session of the Standing Committee on Copyright and Related Rights (SCCR). 

Spearheaded by the Ministry of Law, this proposal is a cross-ministerial collaboration involving the Ministry of Foreign Affairs, the Ministry of Culture, and the Ministry of Creative Economy. It represents Indonesia’s effort to promote justice for authors and right holders, ensuring they receive fair economic benefits from their works in the digital era. More than just policy, it aims to dismantle longstanding structural inequalities embedded within the global intellectual property system.

Titled The Indonesian Proposal for a Legally Binding Instrument on the Governance of Copyright Royalty in the Digital Environment, the proposal outlines key frameworks including music royalty governance and protection of publishers’ rights over journalistic content. It encourages the adoption of an international legal framework that is fair, transparent, inclusive, and sustainable – anchored with three pillars: global royalty governance, a user-based distribution system, and the strengthening of cross-border collective management institutions.

According to the Minister of Law, Supratman Andi Agtas, this proposal will not conflict with the legal frameworks already in place in other countries. On the contrary, he believes that the proposal will support a fair royalty distribution among the WIPO member states.

Specific to the music industry, Indonesia’s ongoing reform of Collective Management Organizations (LMK) and the National Collective Management Organization (LMKN) has further bolstered its leadership in this initiative. The proposal specifically seeks to ensure rightful royalties for authors, musicians, composers, and related rights holders, driving growth in the Indonesian national music industry. This progress has encouraged active dialogue and collaboration with various stakeholders across the industry.

Notably, support for this proposal came from one of the largest music streaming service companies, Spotify. In a formal letter to the Ministry of Law, Spotify praised the government’s commitment to maintaining a transparent, accountable, and fair royalty governance system, pledging ongoing support to strengthen royalty collection and distribution in Indonesia.

As Indonesia assumes a leading role in shaping global standards for copyright royalty governance, it becomes increasingly important for authors, rights holders, and users of intellectual property to understand the evolving landscape. Thus, it is crucial that we actively support and oversee the adoption of this proposal, ensuring that Indonesia can become a pioneer in improving the global royalty governance system, with an implementation that is equally strong and effective.(JPK/ADR/AAH-su)