LMKN’s Desire for a One-Stop Integrated Service for Music Concert Licensing

Following the success of implementing integrated public performing rights royalties collection, the National Collective Management Organization / Lembaga Manajemen Kolektif Nasional (“LMKN”) plans to implement a One-Stop integrated service for licensing of musical works used in arts events, including music concerts, to maximise the collection of performing rights royalties in Indonesia.

Based on the study conducted by LMKN, there is currently a lack of compliance among music concert promoters to pay public performing rights royalties through LMKN. Consequently, the collected royalties are relatively minuscule when, in reality, the amount could be exponential. Accordingly, the LMKN believes there is a need to issue a Joint Ministerial Decree from the Ministry of Law and Human Rights and the Indonesian Police to remedy the situation.

The proposed Joint Ministerial Decree will likely stipulate obligations and requirements to manage licenses for music concert promoters, including obtaining a recommendation from LMKN in relation to the obligation of royalties payment before The Police issue a crowd permit.

As quoted from the LMKN’s website http://www.lmkn.id, the LMKN supported the government’s plan to form a One-Stop integrated service for obtaining licenses for sports and arts events, including organizing music concerts. The LMKN has long recommended this One-Stop integrated service program, claiming it will hopefully increase effectiveness, efficiency, and transparency in licensing music concerts and sporting events. This has also been stated by the LMKN to the Ministry of Youth and Sport of the Republic of Indonesia, as the institution appointed to include LMKN as part of the One-Stop integrated service for sports and arts events program.

Specific for arts events, especially public performance of musical works for commercial purposes, the organizers that are using copyrighted songs and/or music are required by law to pay public performing rights royalties to the LMKN, as the only institution authorized to organize the collection and distribution of public performing rights royalties of songs and/or music in Indonesia.

Dharma Oratmangun, the chairman of LMKN, stated that in 2023, LMKN changed its royalties collecting system for live events from manual collection to online collection.

“Moving forward, we have a sensitivity and song’s intonation [detection technology] tool that will help in the process of collecting royalties, so that with this sensitivity [tool], we can find how many times a song is being performed and whom the ownership of the songs belongs to.” said Dharma in a meeting with the official of the Directorate General of Intellectual Property of the Ministry of Law and Human Rights / Direktorat Jenderal Kekayaan Intelektual Kementerian Hukum dan Hak Asasi Manusia (“DJKI”) recently.

Moreover, DJKI, along with LMKN, is going to conduct socializations with stakeholders regarding the importance of royalties’ collection and distribution. DJKI will also provide education to the public on the consequences of not fulfilling the obligation to pay royalties, including sanctions and enforcement for such non-compliance. (ADR-BSY/su).