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Music License Agreement Template for Indonesia

A Music License Agreement under Indonesian law is a legally binding contract that governs the terms and conditions under which musical works can be used by a licensee. This agreement complies with Indonesian Copyright Law (Law No. 28 of 2014) and related regulations, establishing clear parameters for music usage rights, territorial restrictions, royalty payments, and reporting requirements. The document addresses both traditional and digital uses of music, incorporating provisions for various distribution channels while ensuring compliance with Indonesia's intellectual property framework and electronic transaction laws.

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What is a Music License Agreement?

A Music License Agreement is essential for businesses and individuals seeking to legally use musical works in Indonesia. This document is typically used when a party needs to obtain rights to use copyrighted music for various purposes, such as commercial broadcasting, public performance, digital streaming, or incorporation into other media. The agreement must comply with Indonesian Copyright Law (Law No. 28 of 2014) and related regulations, including Government Regulation No. 56 of 2021 regarding royalty management. It establishes clear terms for usage rights, territorial scope, payment structures, and reporting obligations while protecting both the licensor's intellectual property rights and the licensee's commercial interests. The document is particularly important given Indonesia's strict enforcement of copyright laws and the growing digital entertainment market in Southeast Asia.

What sections should be included in a Music License Agreement?

1. Parties: Identification of the Licensor (rights holder) and Licensee, including full legal names and addresses

2. Background: Context of the agreement, confirmation of ownership/authority to license the musical works

3. Definitions: Key terms including 'Musical Works', 'Territory', 'License Period', 'Royalties', and other relevant terminology

4. Grant of Rights: Specific rights being licensed, including reproduction, distribution, public performance, and modification rights

5. Territory and Duration: Geographic scope of the license and term length

6. License Fees and Royalties: Payment terms, royalty rates, calculation methods, and payment schedule

7. Reporting and Auditing: Requirements for usage reporting and rights holder's audit privileges

8. Warranties and Representations: Parties' warranties regarding rights ownership, authority to contract, and non-infringement

9. Protection of Rights: Obligations regarding copyright notices, protection measures, and infringement reporting

10. Termination: Grounds for termination, notice requirements, and post-termination obligations

11. General Provisions: Standard clauses including notices, assignment, entire agreement, and governing law

What sections are optional to include in a Music License Agreement?

1. Sub-licensing Rights: Include when the Licensee is permitted to grant sub-licenses to third parties

2. Digital Rights Management: Include for digital distribution, specifying technical protection measures

3. Minimum Guarantee: Include when there's a minimum payment guarantee regardless of actual usage

4. Creative Control: Include when the Licensor requires approval rights over use of the music

5. Marketing and Promotion: Include when specific marketing obligations or restrictions apply

6. Collection Society Arrangements: Include when involving relationships with collecting societies

7. Synchronization Rights: Include when licensing music for audio-visual productions

8. Moral Rights: Include specific provisions regarding moral rights under Indonesian law

What schedules should be included in a Music License Agreement?

1. Schedule A - Licensed Musical Works: Complete list of musical works covered by the agreement, including composers and recording details

2. Schedule B - Royalty Rates: Detailed breakdown of royalty rates for different types of usage

3. Schedule C - Reporting Format: Template for usage reporting and royalty calculations

4. Schedule D - Territory Restrictions: Detailed breakdown of territorial limitations or specific territory-based terms

5. Schedule E - Technical Specifications: Technical requirements for digital delivery or usage of the musical works

6. Appendix 1 - Copyright Registrations: Details of copyright registrations for the licensed works under Indonesian law

7. Appendix 2 - Approved Usage Examples: Samples or examples of approved uses of the licensed music

Authors

Alex Denne

Advisor @ 蜜桃传媒AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Indonesia

Document Type

Music Agreement

Cost

Free to use

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