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]