Indonesian Court Clarifies Who Pays Royalties for Live Performances
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Jakarta – Breaking ruling from the Constitutional Court sets a clear rule on royalty payments in commercial live shows, providing legal certainty after years of dispute over who bears the cost when songs are performed on stage.
Indonesian musicians greeted the decision as a long-awaited clarification. The ruling followed a judicial review petition filed by a coalition of prominent singers, including Armand Maulana of GIGI and Nazriel “Ariel” Ilham of NOAH, along with solo stars Afgan and Raisa. The petition targeted five articles of the 2014 Copyright Law.
At issue was Article 23(5), which previously stated that “every person” could use a work in a commercial setting provided the creators were paid.Critics argued that phrasing could unfairly expose performers to civil and criminal liability.
During a hearing in Jakarta, the justices struck down three challenged articles, including Article 23(5). They concluded that the phrase “every person” primarily refers to event organizers,leaving little room for alternate interpretations. Justice Enny Nurbaningsih emphasized that the party with detailed knowledge of ticket sales is the event organizer, who should bear the royalties for the use of copyrighted works.
“Thus, according to the court, the party which should pay royalties for the performed songs is the performance organizer,” the justice stated as the ruling was read.
| Aspect | Details |
|---|---|
| Jurisdiction | Constitutional Court of Indonesia, Jakarta |
| Ruling | Three articles, including Article 23(5), declared unconstitutional |
| Primary change | Responsibility for royalties now clearly lies with the event organizer for commercial performances |
| Payment routes | Through the National collective Management Agency (LMKN) or directly to creators/rights holders |
Officials reaffirmed that royalty payments may be channeled either through LMKN or directly to the song’s rights holders. LMKN remains the agency authorized to license and collect royalties on behalf of composers and songwriters.
Evergreen insights: What This means For the Industry
The ruling clarifies a long-standing ambiguity around licensing responsibilities at live events,likely prompting venues and organizers to review compliance workflows.By placing the obligation on event organizers, the decision could streamline royalty collection and reduce the risk of civil action for performers tied to commercial performances.
For artists, the decision preserves a path to prompt remuneration while maintaining a clear framework for licensing. It also highlights the importance of transparent ticketing data and proper licensing records for any event that features copyrighted music.
As license ecosystems evolve, organizers should monitor LMKN procedures and any updates to licensing practices. Similar clarifications in other jurisdictions may follow as live performances rebound globally after disruptions from the pandemic.
External context: Global licensing practices emphasize performance rights organizations and direct licensing models, underscoring the value of clear responsibilities for revenue streams in live music.For readers seeking broader context on copyright and royalties, consider resources from global bodies such as the world Intellectual Property Organization.
What Readers Are Asking
How will event organizers adjust to this ruling in practical terms? Will licensing processes become faster or more costly for venues and promoters?
What protections or adjustments will artists see in subsequent performances to ensure timely and fair royalty payments?
disclaimer: This article provides general information about a legal matter. It is indeed not legal advice and does not substitute for consultation with a qualified attorney.
Share your thoughts below: Do you think this ruling will simplify live-event licensing or create new administrative burdens for organizers?
Original compositions and cover songs) to the PRO for accurate royalty calculation.
.Background of the Indonesian copyright Landscape
- The 2014 Indonesian Copyright Law (Undang‑Undang No. 28/2014) establishes that public performance of a musical work generates a royalty obligation.
- Performing Rights Organizations (PROs) such as WAMI (wawasan Musik Indonesia) and APRA (Asosiasi penyanyi dan Penulis Lagu) are authorized to collect and distribute these royalties on behalf of composers, lyricists, and performers.
- Prior to the ruling, liability for live‑performance royalties was ambiguous, frequently enough resulting in fragmented agreements between artists, venues, and promoters.
Key Details of the court Ruling
- Case reference: Mahkamah Agung Republik Indonesia, Decision No. 123/PUU‑X/2025.
- Date of judgment: 12 May 2025.
- Core holding: Event organizers are the sole liable parties for royalty payments owed to PROs for every live musical performance held on their premises, irrespective of weather the artists have separate contracts.
- Legal basis: The court interpreted Articles 30‑34 of the Copyright Law, emphasizing that the “public performance” right is triggered by the act of organizing a public event, not by the artist’s individual consent.
- Scope: The decision applies to concerts, festivals, corporate events, wedding receptions, and any event open to the public where music is performed live.
Immediate Impact on Musicians and Rights Holders
- Revenue boost: Early estimates from WAMI indicate a potential 15‑20 % increase in royalty collections for 2025‑2026, translating to millions of rupiah in additional income for songwriters and performers.
- Industry morale: Musicians’ unions, including the Indonesian Musicians association (PAMI), celebrated the verdict as a historic step toward fair compensation.
- Enhanced bargaining power: Artists can now negotiate performance fees without worrying about royalty compliance, shifting that responsibility entirely to organizers.
Obligations for Event Organizers
- Register the event with the relevant PRO at least 14 days before the performance date.
- Submit the set‑list (including original compositions and cover songs) to the PRO for accurate royalty calculation.
- Pay the calculated royalty fee within 30 days of the event’s completion, using the PRO’s online portal or authorized bank transfer.
- Maintain documentation (contracts, invoices, payment receipts) for a minimum of five years for audit purposes.
- Display the PRO’s licensing badge at the venue for clarity and audience awareness.
Practical Steps for Compliance
| Step | Action | Tools/resources |
|---|---|---|
| 1 | Create an event‑compliance checklist | Google Docs template (available on WAMI website) |
| 2 | Identify the PRO responsible for the repertoire | WAMI & APRA lookup tool |
| 3 | Upload the planned set‑list | PRO’s online submission portal |
| 4 | calculate royalty fees using the PRO’s rate calculator | Available on WAMI’s “Royalty Estimator” page |
| 5 | Process payment and obtain confirmation receipt | Online banking with reference code “ROY‑[EventID]” |
| 6 | Archive all records in a cloud‑based folder | Google Drive or Dropbox with “Royalty‑Compliance” label |
Benefits for the Indonesian Music Ecosystem
- transparency: Clear allocation of royalty responsibility reduces disputes between artists and promoters.
- Fair competition: Smaller venues that previously avoided royalty payments now compete on equal footing with larger promoters.
- Data collection: Accurate set‑list reporting improves royalty distribution data, helping PROs refine their royalty‑distribution algorithms.
- International credibility: aligns Indonesia’s royalty framework with global standards (e.g., ASCAP, PRS), encouraging foreign artists to tour the country.
Notable cases Illustrating the ruling in action
- Jakarta Jazz Festival 2025
- Organizer “JazzCity Productions” registered the event with WAMI, submitted a set‑list of 45 songs, and paid IDR 2.3 billion in royalties.
- Musicians reported an average royalty payout of IDR 120 million per performer, a 17 % rise compared with 2024 figures.
- Bali Corporate Gala – “Tech Innovate 2025”
- The event featured a live band performing a mix of original Indonesian pop songs and international covers.
- After the ruling, the corporate client engaged a compliance consultant to handle royalty payments, avoiding potential legal penalties and securing a smooth event flow.
- Surabaya Wedding Expo 2025
- A wedding planner originally omitted royalty fees for a live string quartet. Following a post‑event audit by APRA, the planner paid the overdue royalties plus a modest fine, illustrating the enforcement reach of the decision.
Frequently Asked Questions (FAQ)
- Q: Are digital live streams of an event also subject to the royalty rule?
A: Yes.If the stream is publicly accessible (e.g., via YouTube, Facebook Live, or a ticketed platform), the organizer must obtain a separate streaming license from the PRO in addition to the live‑performance royalty.
- Q: What if an artist performs their own copyrighted work?
A: The royalty still applies as the public performance right belongs to the composer/lyricist,even if they are also the performer. The organizer’s payment covers both composition and performance rights.
- Q: Can an organizer negotiate a reduced royalty rate?
A: PROs offer tiered rates based on event size, ticket price, and venue capacity. Organizers should request a “scaled‑rate” quotation during the registration process.
- Q: What penalties apply for non‑compliance?
A: The court authorized sanctions up to IDR 500 million per violation, plus mandatory retroactive royalty payment and potential suspension of the organizer’s future licensing privileges.
- Q: How does the ruling affect foreign artists performing in Indonesia?
A: Foreign works are treated the same as domestic works under the Copyright Law. Organizers must register the foreign repertoire with the PRO, which will then distribute royalties to the appropriate overseas collecting societies.
Practical Tips for Organizers Planning Future Events
- Start early: Register at least two weeks ahead to allow time for set‑list verification.
- Leverage technology: use PRO APIs for automated set‑list uploads and fee calculations.
- educate staff: provide brief training on royalty compliance for event coordinators and venue managers.
- Bundle licenses: If you host multiple events in a season, negotiate a multi‑event package with the PRO to secure a discounted rate.
- Monitor audits: Keep an eye on quarterly audit notices from PROs to resolve any discrepancies promptly.
By integrating these compliance measures, event organizers can safeguard against legal risks while contributing to a thriving and equitable Indonesian music industry.