How Law and Business Work

in Indonesian Music Industry

By: Anggie Prihanggini

 General Knowledge

A.COPYRIGHTS
Creator / Author / Composer

Song Work

Economics and Moral Rights

Economics and Moral Rights Time Period

Violation of Copyrights

B.NEIGHBOURING RIGHTS
1. PERFORMER

a. Economics and Moral Rights

b. Economic and Moral Rights Time Period

c. Violation of Performer Rights

2. PHONOGRAM PRODUCER

a. Economic Rights

b. Economics Rights Time Period

c. Violation of Phonogram Producer Rights

3. BROADCASTING ORGANIZATION

a. Economic Rights

b. Economic Rights Time Period

c. Violation of Broadcasting Organization Rights

C. NCMO and CMO

D. THE USE OF SONG WORK AND NEIGHBOURING RIGHTS PRODUCT

1. The Use of Song Work in a Recording Product

2. The Use of Neighbouring Rights Product

E. TRANSFER, TRANSACTION, LDD (CHAIN OF TITLE)

1. Assignment and Article 18/30 Law of 28/2014

2. Engagement and Work for Hire (Pasal 36 dan 37)

3. Take-down Rights, Enforcement Rights and Reporting

4. The Chain of Title, Perfection and Recordation, Announcement and

Claim, and Statute of Limitation

5. Transaction and LDD (Chain of Title)

General Knowledge

Copyright is the exclusive right of the creator (here is Composer) that arises automatical-
ly based on declarative principles after a work is realized in a tangible form without re-
ducing restrictions in accordance with the provisions of laws and regulations.

The Creator (here is Composer) is one or several people who individually or together pro-
duce a creation that is unique and personal.

Creation (here is Song/Song Work) is any creative work in the fields of science, art, and
literature that is produced on inspiration, ability, thought, imagination, dexterity, skill, or
expertise that is expressed in a tangible form.

Copyright owner/holder is the Composer as the owner of the Copyright, the party who
receives the right legally from the Composer, or another party who further receives the
right from the party who receives the right legally.

Neighbouring/Related Rights are rights related to Copyright which are exclusive rights for
Performers, Phonogram Producers, or Broadcasting Organisations.

Performer is a person or persons who individually or jointly display and demonstrate a

work (here means Song)

A Phonogram Producer is a person or legal entity that first records and has the responsibili-
ty to carry out recording or sound recording, both recording performances and recording
other sounds or sounds.

Broadcasting Organizations are broadcasting providers, both public broadcasting organi-

zations, private broadcasting organizations community broadcasting organizations sub-
scription broadcasting organizations do their duties, functions and responsibilities in ac-
cordance with the provisions of the laws and regulations.

Reproduction is the process, act, or method of duplicating one copy of a Work (here
means Song Work) and/or phonogram or more in any way and in any form, permanently
or temporarily.

Fixation is the recording of audible sound, recording of images or both, which can be
seen, heard, reproduced, or communicated through any device.

Phonogram is a fixation of performance sound or other sound, or representation of sound,

which is not included in the form of fixation incorporated in cinematography or other au-
diovisual Works.

Broadcasting is the transmission of a Work or Neighbouring Rights product wire- lessly so

that it can be received by everyone in a location far from where the transmission origi-
nates.

A License is a written permission granted by a Copyright Holder or Neighbouring Rights

Owner to another party to exercise economic rights over their Works or Neighbouring
Rights products under certain conditions.

Royalty is a reward for the use of Economic Rights of a Work or Neighbouring Rights
Product received by the composer or owner of the related rights.

Collective Management Organization is an organization in the form of a non-profit legal

entity which is authorized by the Composer, Copyright Holder, and/or Neighbouring
Rights owner to manage their economic rights in the form of collecting and distributing
royalties.

Piracy is the illegal copying of Works and/or Neighbouring Rights products and the wide
distribution of the goods resulting from the reproduction in order to obtain economic bene-
fits.

Commercial Use is the use of Works and/or Neighbouring Rights products with the aim of
obtaining economic benefits from various sources or for a fee.

Compensation is the payment of a sum of money charged to the perpetrators of the in-
fringement of the economic rights of the Composer, Copyright Holder and/or Neighbour-
ing Rights owner based on a court decision in a civil or criminal case which has perma-
nent legal force for the losses suffered by the Composer, Copyright Holder and/or
Neighbouring Rights Owner.

A. Copyrights

Economics and Moral Rights of Composer

a. Economics Rights

1. Publishing of Creation;

2. Reproduction of Creation in any forms;

3. Translation of the creation;

4. Adaptation, Arrangement or transformation of the Creation;

5. Distribution of the creation or its copy;

6. Performance of the Creation;

7. Publication of Creation;

8. Transmission of the creation; and

9. Lease of the Creation.

b. Moral Rights

1. Whether to write or not list their name on any copy of creation in regards to the
usage of their creation to Public.

2. To utilize their aliases.

3. To modify their creation in accordance with Public’s order and norms.

4. To modify the title and sub title of the creation.

5. To preserve and defend their rights in event that the creation are distort ed, mu-
tilated, modified or against any action that deemed to damage their honor
and reputation.

Song Work

Creation (here means Song Work) any creative work in the fields of science, art, and liter-
ature that is produced on inspiration, ability, thought, imagination, dexterity, skill, or ex-
pertise that is expressed in a tangible form.

Economics and Moral Rights Time Period

The works of Book, and/or any other written works, song and/or musical work with or
without lyrics/text that are transferred by sold flat agreement and/or indefinite transfer are
to be reverted to the original author when the agreement reaches the period of 25 (twenty
five) years.

The Protection of Composer’s Economic Rights shall endures for a term consisting of the
life of the Composer and 70 (seventy) years after the Composer’s death, commencing
from 1st January of the year following the event.

Violation of Copyrights

B. Neighbouring Rights
1. Performer

Economics and Moral Rights

a. Economic Rights

1. Broadcast or transmission of the performance of the Performer;

2. Fixation of the performance that yet to be fixated;

3. Reproduction of the their Performance Fixation in any method and form;

4. Distribution of their Performance Fixation or its copies;

5. Lease of their Performance Fixation or its copy to the Public; and

6. Provision of their Performance Fixation to general Public Access.

b. Moral Rights

1. Their name to be listed as performer unless agreed and expressly stated other-
wise; and

2. To prohibit any distortion, mutilation and modification of creation; or to prohibit

any action that deemed to damage their honor and reputation, unless
agreed and expressly stated otherwise.

Economics and Moral Rights Time Period

a. Economics Rights Time Period

Performer, valid for 50 (fifty) years since the performance is fixed in Phonogram or audiovi-
sual;

The validity period of the protection of economic rights as referred to in paragraph

(1)is effective as of January 1 of the following year.

b. Moral Rights Time Period

The validity period of the moral rights as referred to in Article 57 applies mutatis mutandis
to the moral rights of Performers.

Violation of Performer Rights

2. Producer
Economics Rights
1. Reproduction of Phonogram in any means and forms as applicable by Laws
and technology;

2. Distribution of Original Phonogram or its copies;

3. Public Lease of Phonogram copy; and

4. Provision of Phonogram with or without cable for General Public Access.

Economics Rights Time Period

Phonogram Producer, valid for 50 (fifty) years since the Phonogram is fixed.

The validity period of the protection of economic rights is effective as of January 1 of the
following year.

Violation of Producer Rights

3. Broadcasting Organization
Economics Rights
The economic rights of the Broadcasting organizations include the right to imple-

ment it themselves, grant permits, or prohibit other parties to:

1. Broadcast rebroadcasting;

2. Broadcast communications;

3. Broadcast fixation;

4. Broadcast Fixation duplicating.

Everyone is prohibited from carrying out commercial purposes on Broadcasting Organiza-

tions.

Economics Rights Time Period

Broadcasting Institution, valid for 20 (twenty) years since the broadcast work was first
broadcast.

The validity period of the protection of economic rights as referred to in paragraph

(1) is effective as of January 1 of the following year.

Violation of Broadcasting Organization Rights

Any person who intentionally and without rights violates the Economic Rights for Commer-
cial Use, shall be sentenced to a maximum imprisonment of 4 (four) years and/or a maxi-
mum fine of Rp. 1,000,000,000.00 (one billion rupiah).

Anyone who commits with the intention of Piracy shall be punished with imprison- ment for
a maximum of 10 (ten) years and/or a maximum fine of Rp.

4,000,000,000.00 (four billion rupiahs). ).

C. NCMO and CMO

National Collective Management Organization is a government aid agency formed by the Min-
ister based on the Law of Copyrights that own the authority to withdraw, collect and distribute
royalties and manage interests of Economic Rights of the Composer, Copyright holder and
Neighbouring Rights owner in songs and/or music. The practice in Indonesia, NCMO appoints
CMO to collect royalties from users and distributes to its members.

Collective Management Organization is an organization in the form of a non-profit legal enti-

ty which is authorized by the Composer, Copyright Holder, and/or Neigh- bouring Rights
owner to manage their economic rights in the form of collecting and distributing royalties.

The mechanism of royalty distribution managed by the CMO is:

1. Composer registers himself to be a member with his song work

2. User pays based on the invoice to CMO

3. User submits lists of songs used

4. Composer receives royalty based on CMO’s distribution schedule

THE ROLE OF COLLECTIVE MANAGEMENT ORGANIZATION (CMO) ON ECONOMIC

RIGHTS OF COMPOSERS AND NEIGHBOURING RIGHTS OWNERS

In Indonesia, there are approximately 8 (eight) established CMOs for Copyright and
Neighbouring Right Owner.

CMO was formed to protect the Economic Rights of Composers and Neighbouring Rights
Owners on the use of Song/Music Copyright Works and Neighbouring Rights Products in
the field of Songs/Music in commercial public services or commonly referred to as “Per-
forming Rights”.

Forms of commercial public services are:

- Seminar and commercial conference;

- Restaurants, cafes, pubs, bars, bistros, and clubs;

- Music concerts;

- Transportation;

- Exhibitions dan bazaars;

- Cinema;

- Call waiting tone;

- Bank and office;

- Stores

- Recreation centers;

 - Television Broadcaster;

- Radio Broadcaster;

- Hotel, hotel room, dan hotel facilities;

- Karaoke

Thus, every person and/or legal entity who wants to use the copyrighted works of songs
and/or Neighbouring Rights Products is able to use them commercially by obtaining li-
cense and/or paying royalties to CMO.

In order to obtain Economic Rights in the use of commercial public services, the Com-
poser and/or Copyright Holder and Neighbouring Rights Owner must become members
of the CMO.

CMO will collect royalties on songs belonging to its members and those who are not yet
members.

D. THE USE SONG OF WORK AND NEIGHBOURING RIGHTS PRODUCT

The explanation below only focuses on Song Work and Neighbouring Right Product relat-
ed to song.

As previously explained, the Composer and/or Copyright Holder owns the Copy- right for
every use of their Copyrighted Work that is used by others, as well as the Phonogram
Producers and Performers who have the Neighbouring Rights for each use of the Neigh-
bouring Rights Products used by others.

Copyright arises when the Song Work has been realized in real form. In practice, the real-
ization of a song work is done by fixation and/or phonogram so that it can produce a
Recording Product.

Be mindful of the fact that the granting of license to use songs in Indonesia is usu- ally
given separately, as explained below:

THE USE OF SONG WORK:

1. Master Recording

Composer/ Copy- To:

right Holder Giving the
Sound Recording of Song Work;
license to:
Phonogram
Producer/
Performer

MASTER
RECORDING

ROYALTY

a. Reproduction

b. Distribution

c. Lease

d. Provision

There are Economic Rights of parties in Master Recording that shall be considered:

1. Composer and/or Copyright Holder Economy Rights;

2. Performer Economic Rights;

3. Phonogram Producer Economy Rights.

Although recording and/or registration does not eliminate Economic Rights, in order to
obtain and maintain the Economic Rights of Composer and/or Copy- right Owner, Per-
former, and Phonogram Producer, these parties should register the Song Work and/or
Sound Recording with institutions appointed by the government, one of which is
CMO.

In addition, in practice of every production of a Master Recording to identify a Master

Recording, the Producer always fills in metadata before distributing a Master Record-
ing, which at least includes the following data:

- Song Title

- Name of Singer / Performer

- Name of Composer

- Name of Phonogram Producer

- Song / Music Release Date

- ISRC (International Standard Recording Code)

- ISWC (International Standard Work Code)

With the metadata, anyone is able to search for the composer/owner of the song
work, the performer, and the owner of the master recording (Phonogram Producer),
especially with the ISRC and ISWC which are international in nature, to strengthen the
identity of a Song Work and Master Recording, not only in Indonesia but also outside
Indonesia.

Producers can exploit the Master Recording either with and/or without Video, in which
case the exploitation is aimed at obtaining economic value from the Master Recording.
In general, in Indonesia a Song Work Use License for the production of a Master
Recording is accompanied by a limited synchronization license only for the benefit of
the Master Recording, namely video clips and/or lyric videos from the Master Record-
ing and it is not allowed to include the brand of any product in the video.

Producer is able to implement the Economic Rights of a Master Recording by:

a. Phonogram Reproduction.

Phonogram reproduction can be done in physical format (cassette, CD, VCD,

DVD) also in Digital Format (Ringbacktone, Digital Store Platform).

b. Phonogram Distribution

c. Lease to public as Phonogram copy

d. Wired or wireless Phonogram provision that can be access publicly.

For every exploitation made to the Master Recording, the Composer is entitled to re-
ceive Royalties

2. Music Program (live streaming and Video on Demand (VoD))

Covid-19 has impacted music industry in Indonesia. When everyone was not able to
leave the house to enjoy live music and/or concerts, actors in the entertainment world,
especially Event Organizers, were looking for ways so that the ecosystem in the music
industry could survive, by presenting a new way to en- joy music. They strived for
making a virtual concert with a concept similar to a conventional concert, and also a
concert that was presented in the form of live streaming through digital platforms, one
of which was through YouTube.

What license needed by concert organizers in the practice of Indonesia Live Streaming
related to song work usage?

In practice in Indonesia, every Live Streaming concert organizer must obtain license
from the Composer, this license is usually called the "Synchronization License".

Why Synchronization? Because the organizers do the synchronization between the

picture and the sound to be displayed in Live Streaming. In general, the Composer/
Copyright Holder only grants synchronization license for 1 (one) Live Streaming and
the organizer is not allowed to re-upload the Live Streaming (VoD) results. But if the
organizer wishes to upload the Live Streaming (VoD) results then usually the organizer
will be charged an additional fee for its synchronization fee.

Be mindful, the license granted in this case is different from the granting of li- cense in
the production of Master Recording, so the recordings from Live

Streaming cannot be exploited and/or reproduced for distribution through other me-
dia.

3. Synchronization in Advertising, Movies and Soap Operas

A Production House usually requires a Song to support its visual work. In this case,
PH will be charged a Synchronization Fee for every use of a Song used in a visual
work.

a. Advertising

Generally in Indonesia, for every use of a Song in an Advertisement, the Compos-

er/Copyright Holder will charge a synchronization fee whose amount is adjusted to
the interests of the user (for example whether to replace the lyrics of the song ac-
cording to the needs of the advertisement), and the syn- chronization fee is affect-
ed by the length of the Agreement. Usually for ad- vertisements with a given period
of 1-2 years, after the time period expires, PH may not use advertisements con-
taining the copyrighted work in question.

b. Movies, Soap Operas and FTV

The Composer will charge a synchronization fee to PH, but if the Movie, Soap
Opera and/or FTV will be printed in physical form (VCD, DVD) then usually the
 Composer/Copyright Holder will charge a mechanical fee (both advance royalties
and/or royalties from each product sold).

THE USE OF NEIGHBOURING RIGHTS PRODUCT

Neighbouring Rights Products are all works of Neighbouring Rights owners in the form of
performance works, recording works or broadcast works.

In this case, Neighbouring Rights Products are products related to Songs/Music.

Not much different from the use of Song Copyright Works, Master Recording can also be
used by Other Parties other than Neighbouring Rights Owners for commercial purposes.

In general, in Indonesia for several uses, the license to use Sound Recording is separated
from the license to use the copyrighted work, for example:

To use sound recording for synchronization in Movies, the user must obtain license from the
composer and producer separately.

Likewise, for the distribution of sound recordings on DSPs such as JOOX, Spotify, etc.,
even though the platform owner has cooperated with the producer as the owner of the
sound recording, the platform owner must also enter into an agreement with the composer/
copyright holder for the intended distribution.

DISTRIBUTION OF ROYALTY AND/OR COMPENSATION TO COMPOSERS AND/OR

COPYRIGHT HOLDERS, PERFORMERS AND PHONOGRAM PRO- DUCERS FOR
THE USE OF COPYRIGHT WORKS OF SONG AND/OR SOUND RECORDING WORK

A. COMPOSER/ COPYRIGHT HOLDER

COMPOSER/
COPYRIGHT
HOLDER

MECHANICAL RIGHTS PERFORMING

RIGHTS RIGHTS
Phonogram Producer,
Platform Owner, PH CMO
B. PERFORMER

PERFORMER

PERFORMING
MECHANICAL RIGHTS
RIGHTS
Phonogram Producer
CMO

C. PHONOGRAM PRODUCER

PHONOGRAM
PRODUCER

MECHANICAL RIGHTS PERFORMING

Distribution Partner
RIGHTS

(operator telecommunication, ag-

CMO
gregator, platform)
E. TRANSFER, TRANSACTION, LDD (CHAIN OF TITLE)

TRANSACTION OF COPYRIGHT AND NEIGHBOURING RIGHTS

The use of Song Work and Neighbouring Rights Products have been explained above.
Thus, this section will be focusing on Transactions on Copyrights and Neighbouring Rights.

The transactions referred to in this section are activities done and made possible by Law
No. 28/2014 regarding the transfer of:

1. Composer’s Copyright of Song / Music;’s

2. Performer’s Neighbouring Right of Neighbouring Rights Product;

3. Phonogram Producer’s Neighbouring Rights of Neighbouring Rights Product.

As mentioned earlier, that the Composer owns the Copyright for every song that is created.
Meanwhile, Performer and Phonogram Producer own Neighbouring Rights of Neighbour-
ing Rights Product.

The transfer in this section means a process of transferring, changing and/or replacing the
Rights to a Song Work and Neighbouring Rights Products owned by the original owner to
another party in its entirety, so that the original or initial owner does not have any rights af-
ter the transfer occurs.

Law No. 18 of 2014 has regulated the Transfer of a Copyright of the Composer and Neigh-
bouring Rights of the Performer and the Phonogram Producer.

 1. COMPOSER’S COPYRIGHT TRANSFER OF SONG WORK

Copyright consists of Moral Rights and Economic Rights.

Thus, the overall Copyright Transfer of a Song Work cannot be done according to Law
No. 28/2014.

What about the practices that often occur in Indonesia regarding the transfer of
Copyright?

As is known, both in Indonesia and outside Indonesia, the collection of royalties for the
implementation of the Composer’s Economic Rights to the Song Work cannot be
cannot be done entirety by the Composer himself. The Composer needs another party
to obtain his Economic Rights either through the Publisher Company or the CMO.

Thus, in order to get better results on their Economic Rights, the Composer usually
cooperates with the Publisher Company and becomes a member of the CMO.

Publisher Companies and CMOs in Law No. 28/2014 are referred to as Copyright
Holders, because they receive the power and/or rights from the Composer to conduct
the administrative function of managing the Composer's Economic Rights for the use
of Song Work.

 COPYRIGHT To manage Economic Rights of

COMPOSER
HOLDER the Composer’s Song Work

CMO

To manage Economic Rights of Com-

poser’s Song Work for commercial Pub-
lic Service such as:

1. Performance of Creation;

2. Publication of Creation;

3. Communication of Creation.

The management of Economic Rights conducted by the Publisher and CMO is often
considered as a transfer of Copyright in its entirety, but in fact it is only a transfer of
part of the copyright owned by the Composer to the Publisher and/or CMO.

2. PERFORMER’S NEIGHBOURING RIGHTS TRANSFER OF NEIGHBOURING

RIGHTS PRODUCT

Neighbouring Rights owned by performer consist of Moral Rights and Economic

Rights.

Based on this, the conclusion is that Performer’s Neighbouring Rights cannot be trans-
ferred in its entirety.

The practice in Indonesia, performer usually works together with other parties to make
Neighbouring Rights Product.
a. Recording Work with Phonogram Producer

PHONOGRAM
PERFORMER
PRODUCER

a. Reproduction
SOUND b. Distribution
RECORDING
c. Lease

d. Provision

In this Cooperation, Sound Recording is generally owned by the Phonogram Pro-

ducer, so that the Phonogram Producer has the right to exploit Sound Recording in
various formats and media, and for the exploitation done by the Phonogram Pro-
ducer on Sound Recording, the Producer has an obligation to provide compensa-
tion and/or revenue sharing to Performer.

b. Shows broadcast by Broadcasting Organization

BROADCASTING
PERFORMER ORGANIZATION

1. Re-Broadcasting

2. Broadcast Communication
BROADCAST
WORK 3. Broadcast Fixation

4. Broadcast Fixation Duplicating

Here, Broadcast Works are the property of the Broadcasting Organization, and for
the performances performed by the Performer.
c. Live Show / Concert without Broadcasting or Communication

PERFORMER PROMOTOR

Here, for the performance of the Performer, only fixation done for the Promoter's
documentation which is not used for broadcasting and/or commercial communica-
tion.

d. Fixed Show for Communication Use

PRODUCTION
PERFORMER
HOUSE

Here, the performer's performance is fixed for Communication use, usually the fixa-
tion results will be uploaded by PH on a digital platform such as Youtube.

3. PHONOGRAM PRODUCER’S NEIGHBOURING RIGHTS TRANSFER OF NEIGHBOURING

RIGHTS PRODUCT

Neighbouring Rights owned by Phonogram Producer are Economic Rights.

Based on UUHC 28/2014, the Phonogram Producer can transfer the Economic Rights
on Sound Recording in its entirety to another party.
4. Broadcasting Organization’s Neighbouring Rights Transfer of Neighbouring
Rights Product

Economic Rights:

a. Rebroadcast
BROADCASTING BROADCAST
ORGANIZATION WORKS b. Communication
c. Fixation
d. Fixation Reproduction

Economic RIghts transfer of Neighbouring Rights Product

(Article 29/Paragraph 16)

e. Inheritance

f. Grant

g. Benefaction

h. Written Agreement
NEW OWNER

i. Other reasons considered in accordance with the pro-

visions of law

Based on UUHC 28/2014, the Broadcasting Organization can transfer the Economic
Rights on Broadcast Works in its entirety to another party.

PHONOGRAM PRODUCER’S ECONOMIC RIGHTS TRANSFER OF SOUND

RECORDING

Previously explained that the Phonogram Producer may transfer the Economic RIghts
to his Sound Recording in its entirety to another Party. However, be mindful that in a
Sound Recording there are rights other than the rights owned by the Producer, which
are Moral Rights and Economic Rights of the Composer and Performer.

These are several things need considering in terms of transferring Economic Rights of
Sound Recording:

1. Metadata of Sound Recording

As explained previously, in general, every producer has metadata on their Sound

Recording. In the Metadata the identity of Sound Recording can be seen, especial-
ly the date when Sound Recording was first announced. The announcement date is
important, considering that Economic Rights begin to arise at the time of the first
announcement.

2. Agreement with Composer/Copyright Holder

This is considered important as the Composer has Moral Rights and Economic
Rights in every use of his Song Work. Here, it is necessary to know what rights and
obligations the Producer has to the Composer for the Sound Recording to be
transferred.

3. Agreement with Performer

Similar to the Composer, the Performer also has Moral and economic Rights in
each Sound Recording, so that in each transfer it must be clear what rights and
obligations the Producer has to the Performer.

4. Agreement with Other Parties Related to Sound Recording Distribution

The new owner has the right to know to whom and through what distribution of
Sound Recording is done before the transfer occurs. Thus, that the new owner is
able to find out who has distributed Sound Recording to avoid disputes or double
claims in the future.

5. Agreement with CMO

One of the Economic Rights of the Phonogram Producer is obtained through the
CMO. Thus, checking the agreement with the CMO becomes one of the important
things in terms of transfer, unless the Phonogram Producer has not previously been
registered as a member of the CMO.

In addition, performing data matching between the metadata owned by the record
producer and the metadata owned by the CMO can be done. This can be useful for
strengthening proof of ownership of a Sound Recording.

6. Agreement or membership in a record company association

The practice in Indonesia, Associations usually work as intermediaries between

Phonogram Producers and other parties who want to use sound recordings on
 their own platforms or media. These parties usually come from outside Indonesia.
Mostly associations act as intermediaries to make agreements and receive pay-
ments for use sound recording.

Similar to the CMO, with an agreement between the Phonogram Producer and the
Association, it is possible to match the metadata owned by the Association.

7. Receipt

Receipt to Performer and Composer is needed as a validity whether or not Phono-

gram Producer has done his right of Sound Recording exploitation to Performer
and Composer. This is to avoid conflict related to payment to Performer and Com-
poser.

8. Others

Currently, almost all Phonogram Producers distribute digitally, one of which is You-
tube. Each party who distributes through Youtube either directly or through an ag-
gregator usually uses a system that functions to store data on sound recordings,
search the income earned from using sound recordings, search the status of their
sound recordings (whether there are other parties who use them without license or
not (whether there are other parties who acknowledge ownership of the sound
recording that makes conflict of ownership with other parties).

Searching through this system is very helpful to recognize when there is a conflict
of ownership with other parties over a sound recording.

WORK FOR HIRE

In music industry, Work For Hire used to avoid royalty and/or payment of compensation to
the Composer and/or Performer, and/or to be able to transfer the Copyright of the Com-
poser and/or the Neighbouring Rights of the Performer.

Is Work for Hire able to be implemented in an agreement related to Song and/or Music?

As previously explained, based on Law No. 28/2014

Article 18 UUHC 28/2014 Article 30 UUHC 28/2014

Book creations, and/or all Works of Performers in the

other written works, songs
and/or music with or without
text which are transferred in a
sale agreement and/or trans-
fer without a time limit, the
Copyright is transferred back
to the Author when the
agreement reaches a term of
25 ( twenty five years)
form of songs and/or mu-
sic whose economic rights
are transferred and/or
sold, ownership of eco-
nomic rights is transferred
back to Per- formers after
a period of 25 (twenty five)
years.
Based on the Articles of UUHC 28/2014, it is clear that every Song Work and Performance
Work in form of songs/music if there is a sale agreement then Copyright or Neighbouring
Rights shall return to the Composer or Performer after 25 (twenty five) years.