Indonesia’s Criminal Copyright Royalty Cases
Following the landmark Mie Gacoan case, concerning a restaurant that failed to pay music royalties, oversight of commercial copyright use has intensified. Within weeks, Vidio.com reported a 78-year-old café owner for broadcasting an English Premier League (EPL) match without authorization. These cases show that copyright infringement, even at a small scale, has consequences.
In this post we explore the legal implications, risks, and takeaways for businesses operating in Indonesia, with a focus on intellectual property (IP) compliance.
A First-of-Its-Kind Enforcement
At the centre of these two cases lies the criminal provisions in Chapter XVII of Indonesia’s Copyright Law No. 28 of 2014.
- The Mie Gacoan case involved unauthorized public performance of copyrighted music in restaurants without royalty payment to the National Collective Management Agency (LMKN), despite the obligation to do so under Government Regulation No. 56/2021.
- The Klaten café case, reported by Vidio.com, revolved around the unauthorized public broadcast of an EPL match-protected under exclusive broadcasting rights.
Both cases highlight that:
- Commercial benefit-not just intent-defines infringement. Even “accidental” public broadcasting in a business venue can qualify as a violation.
- Penalties are significant: up to four years’ imprisonment and IDR 1 billion in fines.
- Criminal liability extends to individuals, including corporate directors and business owners.
Businesses should note that rightsholders, especially in music, film, and sports, are now actively monitoring for infringements, and even small violations could lead to criminal action. For IP owners and media companies, the government’s support for criminal enforcement shows stronger protection for copyright.
For businesses using music to enhance customer experience, be sure to treat royalty payments as a standard operating cost.
Insights and Takeaways
From a commercial and legal strategy perspective, these cases offers several points:
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Copyright enforcement is moving from reactive to proactive |
The Mie Gacoan and Vidio.com cases show that national agencies (LMKN, SELMI) are ready to pursue violations proactively. |
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Public awareness & education lag behind enforcement |
As The Jakarta Post noted, critics argue that the lack of transparency and limited education around royalty rules have caused widespread confusion. Businesses often do not understand when a use qualifies as “commercial.” |
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Corporate accountability is expanding |
Directors and owners can be prosecuted personally. This pushes companies to integrate IP compliance into corporate governance. |
What Should Businesses Do Now?
To mitigate risks, companies should take these steps:
- Conduct an IP audit: Review all music and media used in your commercial spaces.
- Engage with LMKN or the relevant LMKs to ensure you have the proper licenses, especially for music played in public spaces.
- Document compliance in case of audits or inspections.
- Train staff to recognize and respect IP obligations.
- Seek legal advice: If you’re unsure about your obligations, consult an IP specialist.
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