Regulatory Challenges of Digital Direct Licensing on Royalty in Indonesia’s Copyright Regime

Abstract

This article reviews the evolution of digital technology has transformed royalty distribution mechanisms within Indonesia’s copyright ecosystem. The emergence of the Digital Direct License (DDL) system represents a paradigm shift, enabling copyright holders to receive royalties directly through digital platforms—bypassing the traditional role of Collective Management Organizations (LMKs) and the National Collective Management Organization (LMK Nasional). This shift has sparked significant legal debate, raising concerns over the erosion of institutional authority and potential legal uncertainties. This study explores the legal implications of DDL implementation on the operational integrity using a normative juridical method. The results show that without proactive legal reinforcement, the adoption of DDL risks undermining copyright law enforcement, disrupting institutional functions, and fostering unauthorized royalty flows. The study calls for strategic legal recalibration to safeguard collective rights management and mitigate emerging legal ambiguities.

Keywords: Digital Direct License, Copyright Law, Collective Management, Royalty

DOI: 10.7176/JLPG/148-04

Publication date: June 28^th 2025