Govt. Issues Official List of 20+ Commercial Services Subject to Mandatory Music Royalty Payments: From Hospitality to Streaming Services

In 2021, the government issued Regulation of the Government No. 56 of 2021 (“ Regulation 56/2021 ”), [1] which has been serving as a legal framework that outlines various aspects relating to the management of song and/or music copyright royalties (i.e. compensation for the use of the economic rights associated with a creation or related rights product that is paid to the relevant creator or related rights owner) (“ Royalties Management ”). [2] The framework of Regulation 56/2021 was subsequently further clarified through the issuance of Regulation of the Minister of Law and Human Rights No. 9 of 2022 on the Implementing Regulation to Regulation 56/2021 (“ Regulation 9/2022 ”), [3] which further detailed the role of the National Collective Management Agency (Lembaga Manajemen Kolektif Nasional– “ LMKN ”) and Collective Management Agencies (Lembaga Manajemen Kolektif– “ LMK ”) as regards the aforementioned Royalties Management. [4]