In accordance with the enactment of Law No. 28 of 2014 on Copyright (the Copyright Act), the Ministry of Justice and Human Rights (MoLHR) has issued Regulation No. 29 of 2014 on Guidelines for Application and Issuance of Permits Operational and Evaluation Collecting Management Society (Regulation No. 29).
Copyright law urged authors, copyright holders, and the players become members of collecting societies to administer and collect royalties from commercial use of their copyrights and neighboring rights of the community, said Daru Lukiantono, a ip law consultant at Hadiputranto, Hadinoto & Partners in Jakarta. “Copyright law shows that collecting societies should be non-profit in nature and operating license from MoLHR to meet specific requirements.” it will affect trademark registration Indonesia as well.
In general, Rule 29 specifies further the issue of the establishment, issuance of operational license, and evaluation of public gathering, said Wiku Anindito, associate legal counsel at the firm ip.
To obtain operational licenses, collecting societies must (i) in the form of non-profit legal entity Indonesia; (Ii) obtain the authorization of the author, the copyright holder or the players to gather, collect and distribute royalties; (Iii) represent at least 200 songwriters or 50 members of the cast or other copyright holders (eg, book author); (Iv) have a clear goal and the ability to gather, collect and distribute royalties.
“In addition to meeting the above requirements, collecting societies must submit a written application for a license to MoLHR by attaching supporting documents, such as the Deed of Incorporation and the Articles of Association, a letter of authorization from their members, a list of members and works that they manage,” added Artna Btari, associate in the firm. “After reviewing the application, within 14 working days from the date of filing, MoLHR will issue the operating license if all requirements are met.”
Copyright law requires the establishment of two National Collecting Society (NCS) with one representing the interests of authors, and others who represent the interests of owners of neighboring rights (eg artists). Both people must be the parent organization for local collecting society in the field of songs and musical works, Lukiantono said. “In addition to collecting and managing royalties for its members, NCS community has an obligation to establish a code of conduct for its members; supervise its members; provide recommendations to MoLHR for sanctions against violations of ethics by their members; provide recommendations to MoLHR on licenses that they coordinate public collection; establish guidelines, procedures, and systems in distributing and calculating royalties; mediating behavior for each copyright and neighboring rights disputes, and provide reports to MoLHR. “
As MoLHR will conduct an evaluation of each society collects and NCS least once a year, each collecting society and NCS should prepare performance and financial statements audited by a public accountant at least once a year. Audited reports must be submitted to MoLHR within 14 days after the audit is performed, and the results must be published in national print media or electronic media, Anindito said. “MoLHR may revoke the operating license of a public gathering or NCS if the form of legal entity turned into a profit-oriented entity; it does not distribute royalties to its members; can no longer meet the minimum requirements of members; it is not coordinated with the same collecting society or NCS in setting the amount of the royalties; it did not provide audited reports as required; it did not announce the audited reports; using more than 20% of the operational budget after the first five years and / or use of more than 30% of the operational budget in the first five years, the funds collected from the total of royalties collected annually.”