A recent case involving a popular noodle restaurant reported to the police for playing songs without paying royalties has drawn national attention. The company’s director for the Bali region has even been named a suspect. This incident serves as a serious reminder for business owners—especially those in the culinary, entertainment, and hospitality sectors—that copyright regulations on music are not mere formalities, but a legal obligation. Here’s what the law says about playing music in restaurants, and what business owners can do to comply.
The law on playing music in restaurants
Under Law No. 28 of 2014 on Copyright, any public performance of music without the copyright holder’s permission or without paying royalties can lead to criminal penalties of up to 4 years in prison and fines of up to Rp1 billion. In addition to criminal sanctions, copyright holders are also entitled to pursue civil claims for damages.
This means that if a restaurant, café, barbershop, or even a hotel plays music without a proper license, they could face serious legal consequences. Using personal streaming services like Spotify or YouTube is not sufficient, as their licenses only cover personal use, not commercial purposes.
What should business owners do?
To avoid legal risks and maintain a positive reputation, there are several important steps business owners should take:
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Pay official royalties
Register your business with a Collective Management Organization (CMO) such as SELMI, KCI, or WAMI. These organizations represent copyright holders to manage royalty payments and issue proper licenses for business use. -
Use royalty-free music
As an alternative, businesses can opt for royalty-free music or music specifically licensed for commercial spaces. Many platforms now offer extensive catalogs of royalty-free tracks for an affordable subscription fee. -
Keep contracts and payment records
Store all documents related to royalty payments and licensing agreements carefully. These records are crucial in case of inspections or legal disputes. -
Establish internal SOPs
Ensure staff are aware that only licensed music may be played in public areas. A clear Standard Operating Procedure (SOP) will help prevent unintentional violations. -
Renew licenses regularly
Most music licenses are valid for one year. Be sure to renew your license before it expires to avoid legal complications.
Why is this important?
Compliance with copyright laws is not just about avoiding fines or prison sentences. It’s also a way for business owners to show respect for the work of musicians, composers, and songwriters whose creations enhance customer experiences. Furthermore, copyright management organizations are becoming more proactive in conducting inspections, making the risk of violations even greater for non-compliant businesses.
Conclusion: The legal side of playing music in restaurants
Playing music in restaurants or other business venues can indeed create a pleasant atmosphere for customers. However, the legal aspect should never be taken lightly. By paying royalties or using royalty-free music, business owners not only steer clear of legal trouble but also contribute to supporting Indonesia’s creative industry.
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