One Door System of Collecting the Music Royalties in Indonesia

Indonesian Directorate General of Intellectual Property (Indonesian IP Office) and National Collective Management Organization (NCMO) along with 8 (eight) Collective Management Organizations (CMOs) such as KCI, WAMI, RAI, SELMI, PAPPRI, ARDI, ARMINDO and SMI agreed on “Deklarasi Bali” in Bali on April 26, 2019.

One of the reasons that caused the creation of “Deklarasi Bali” was the issue regarding the confusion related to which institution between NCMO and CMOs be authorized to collect the music royalties from users. In this case, through the “Deklarasi Bali”, NCMO and CMOs have agreed that collecting the music royalties will use one door system through NCMO as the only institution that is authorized to collect, assemble, and distribute the music royalties from users who use the copyright works for commercial purpose which in accordance with the mandate of Article 89 of Copyright Law No. 28 of 2016.

Furthermore, the purpose of creating “Deklarasi Bali” is not only to appoint the right institution to collect the royalties but also to increase the welfare of the Author or copyright’s holder. In Indonesia, the potential of income coming from music royalties is promising. However, since the collecting management of music royalties was disorganized, the Authors, copyright’s holders and the owners of related rights could not get the income at the maximum result. Hopefully, through this “Deklarasi Bali”, the maximum potential of music royalties can be achieved and distributed to all stakeholders by NCMO in accordance with Article 87 of Copyright Law No. 28 of 2016.

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