Centralized management of copyright royalties: A case study on the National Collective Management Organization for songs and music in Indonesia

Abstract This paper tries to examine the role and function of the National Collective Management Organization (NCMO) and Collective Management Organizations (CMOs) for songs and music authors along with their related rights based on the existing law and implementing regulations in Indonesia. The discussion specifically revolves around controversies, challenges, advantages, and disadvantages that occurred from the centralized management system in songs and music conducted by NCMO to ease the royalties payment process for commercial users. The research was made by analyzing qualitative data on the laws and their implementing regulations in Indonesia, and also formal reports, it is supported by in‐depth observation and interviews with selected sources in the fields. Results show that to perform its task as the centralized management body for royalties of copyrights in Indonesia, the NCMO has to transform the way they operate. There are three practicable and acceptable options of transformation which all shall require a structural change, transparency, and reasonable operational costs shared in terms of NCMO's and CMOs' operation. It must also involve improvement in consistency to NCMO, CMOs, and other related agencies to act as trustee bodies.