National Collective Management Organization (LMKN) is established based on the Law No. 28.2014 on Copyrights. This law is to prioritize national interests and pays attention to the balance between the interests of the Author, the Copyright Holder, or the Related Right Owner and the public. In accordance with the law, National CMO is a non-profit institution of legal entity authorized by the author, copyright holder, and/or related rights owner to manage his/her economic right by collecting and distributing royalties.
The Task of LMKN
The function of LMKN is to make coordination and monitor the collecting of royalties by CMOs. Public places or activities using music like cafe, karaoke, and art performance eventually have to pay royalties which is regulated by this organization. This organization is expected to collect, manage, and then distribute royalties to the author and related right owner. By the establishment of LMKN, it is expected the rights of authors especially economic right can be sufficiently obtained.
Copyright and Related Right user exploiting economic rights pay royalties to the Author, Copyright holder, or related right owner, through Collective Management Organization
Operational Permit of LMKN
The Collective Management Organization as referred to in Article 87 section (1) is obligated to submit Application for operational permit to the Minister with the following requirements
- Being a non-profit Indonesian legal entity.
- being authorized by the Author, Copyright Holder, or Related Rights owners to collect, and distribute royalties;
- having mandate givers as members for at least 200 (two hundred) Authors for Collective Management Organizations in the field of songs and/or music that represent the interests of authors and at least 50 (fifty) for Collective Management Organizations representing Related Rights owners and/or other Copyright objects
- having the objective to collect and distribute Royalties; and
- being able to collect and distribute royalties to Authors, Copyright Holders or Related Rights owners.
Collective management institutions that do not have operational permits from the Minister as referred to in paragraph (1) are prohibited from attracting, collecting, and distributing Royalties.