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Director of Mie Gacoan Bali Becomes a Suspect, Music Copyright Case Serves as a Serious Warning for the F&B Industry

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Director of Mie Gacoan Bali Becomes a Suspect, Music Copyright Case Serves as a Serious Warning for the F&B Industry (Credit: instagram.com/mie.gacoan)

Kapanlagi.com - The copyright infringement case involving the Director of Mie Gacoan Bali has become a national spotlight. I Gusti Ayu Sasih Ira has officially been named a suspect after the Indonesian Music Licensing Center (SELMI) reported allegations of using musical works at Mie Gacoan outlets without paying royalties.

SELMI had previously taken persuasive steps by sending a warning letter and inviting mediation. However, Mie Gacoan reportedly ignored these peaceful efforts.

This case then escalated to the legal realm and received full support from the National Collective Management Institute (LMKN). According to an official statement from LMKN, this case is an important step in enforcing copyright protection, especially in the culinary industry, which often neglects the obligation to pay royalties for music played publicly.

1. Impose a Deterrent Effect

"This serves as a deterrent effect for negligent business operators," said the Chairman of LMKN, Dharma Oratmangun, as quoted by Kompas.com. He also emphasized that royalties are not merely a burden, but a form of appreciation for the works of musicians.

It is important to understand that public music performances, such as in restaurants, cafes, shopping centers, or bars, have legal consequences. According to Law Number 28 of 2014 on Copyright, business owners are required to pay royalties to the music creators whose works are used commercially.

Meanwhile, listening to music for personal consumption at home or in a car does not constitute a violation. However, if music is used to create a business atmosphere or public entertainment, permission and royalty payments are mandatory.

2. Needs to be Reevaluated

Business practitioner and professor at the University of Indonesia, Prof. Rhenald Kasali, also responded to this case. He stated that the calculation of royalties has been considered burdensome, especially for small and medium-sized enterprises.

“The calculation used is the number of seats multiplied by Rp120,000 per year per outlet. If there are 50 seats, that means one outlet has to pay Rp6 million per year. Imagine if you have 10 outlets,” said Rhenald Kasali, as quoted by Detik Finance.

He believes this approach needs to be reevaluated because not all seats are filled every day, and the music played is often not the choice of the visitors.

3. Difficult Economic Conditions

The issue of royalty burdens is also related to the purchasing power of the community and operational costs. Food and beverage (F&B) business operators must set aside funds for royalties, even though they are also struggling with fluctuations in raw material prices, a decline in customers, and inflation.

The domino effect of this royalty obligation can lead to menu price increases, which in turn puts more pressure on businesses. Some business operators question the transparency of the royalty fund flow and the basis for the calculations used.

Another major issue is the lack of education. LMKN is considered not to have been effective in socializing the obligation to pay royalties to business operators, especially in the rapidly growing F&B sector. Many business owners are even unaware that playing music without permission can lead to criminal charges.

4. Awareness of Copyright

However, LMKN chose to take legal action first rather than a systematic education approach. This has sparked mixed reactions from the public and business associations.

This case highlights the importance of copyright awareness in the digital age. The general public and industry players need to understand that music is an intellectual work protected by law. Just like using pirated software or movies, playing music without permission in public spaces is a legal violation.

The lesson from the Gacoan Bali case is hoped to open a dialogue between business owners, the government, and royalty management institutions, in order to create a fair and transparent system for all parties.

(kpl/tdr)

Disclaimer: This translation from Bahasa Indonesia to English has been generated by Artificial Intelligence.
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