Ownership and transfer

Eligible owners

Who is the owner of a copyrighted work?

Unless proven otherwise, the owner of a copyrighted work (creator) is any person whose name is:

  • mentioned in the work;
  • stated as the creator of a work;
  • mentioned in the copyright recordation letter issued by the Directorate General of Intellectual Property; or
  • stated in the General Record of Copyright as the creator.
Employee and contractor work

May an employer own a copyrighted work made by an employee?

Yes, an employer may own a copyrighted work made by an employee. However, such ownership is not automatic by virtue of the employment relationship as the Copyright Law mandates that the creator of a work (in this case, the employee) will be the automatic owner of the copyrighted work created by him or her, unless agreed otherwise between the employer and the employee. Usually the agreement regarding the transfer of ownership of a copyrighted work from an employee to the employer is stipulated in the relevant employment agreement between them or the company regulation.

In relation to the procedure for copyright recordation, a copy of the transfer of the copyright ownership is required if the applicant for the copyright recordation is not the creator. As such, it is advisable to have the agreement in writing.

May a hiring party own a copyrighted work made by an independent contractor?

Yes, a hiring party may own a copyrighted work made by an independent contractor. The arrangement for such ownership is the same as the arrangement between an employer and employee, in that such ownership is not automatic by virtue of the employment relationship as the Copyright Law mandates that the creator of a work (in this case, the employee) will be the automatic owner of the copyrighted work created by him or her, unless agreed otherwise between the employer and the employee. Usually the agreement regarding the transfer of ownership of a copyrighted work from an employee to the employer is stipulated in the relevant employment agreement between them or the company regulation. It is advisable for the agreement to be in writing.

Joint and collective ownership

May a copyrighted work be co-owned?

Yes, a copyrighted work may be co-owned.

If a work comprises separate parts created by two persons or more, the person who will be regarded as the creator is the person who leads and oversees the completion of the entire creation. However, if there is no such person, then the person who compiles the entire creation will be regarded as the creator without diminishing other people’s copyright over each separate part of such creation.

Co-ownership of a copyright may also happen by virtue of a partial assignment of the economic right from the copyright holder to any other party (or parties).

Transfer of rights

May rights be transferred? If so, what rules and procedures apply?

Yes, ownership rights over a copyrighted work are transferable, either in part or whole, by way of inheritance, grant, endowment, will, written agreement, or any other means as provided under the prevailing laws and regulations. However, a creator or copyright holder may not assign or transfer the same copyright twice to a different person or entity.

In addition, the Copyright Law stipulates that copyright over books and other literary works, songs and music (with or without lyrics) that has been assigned or transferred by virtue of an outright buyout agreement (sold flat), or timeless assignment, shall be returned to the creator or original copyright holder when the relevant arrangement has reached 25 years. That will also apply to the performers’ economic right over the songs and music in which he or she performed.

As for the procedures, the transfer or assignment of copyright can be recorded with the Directorate General of Intellectual Property (DGIP) to the extent that the relevant copyright is already recorded with the DGIP. The recordation of such transfer or assignment may only be conducted if the entire rights are transferred to the transferee. The application for recordation of a transfer or assignment must be submitted to the DGIP. While the Copyright Law does not provide any time frame for the recordation of a transfer or assignment of copyright, in practice, it usually takes around three to six months. 

Licensing

May rights be licensed? If so, what rules and procedures apply?

Yes. A copyright holder or neighbouring rights holder is authorised to grant a licence to use his or her work when the protection period of the relevant work is still effective.

With regard to the licensing of copyright, please note that there is a requirement to record a copyright licence at the Directorate General of Intellectual Property (DGIP).

The application for recordation of a licence agreement can be filed either manually or electronically by attaching the following documents:

  • a copy of the licence agreement;
  • proof of ownership of the copyright or related rights;
  • a power of attorney, if the application is filed through a proxy;
  • receipt of the payment receipt of the official fee.

Under the regulation, the DGIP will then review the application within five business days after the application is deemed to be complete. If the DGIP considers the application to be complete, it will issue a notice of licence agreement recordation within two business days. The DGIP will also record the licence agreement in the General Registrar and announce such recordation in the Official Gazette.

In practice, the DGIP may take up to one year to complete the recordation of a licence agreement.

Are there compulsory licences? What are they?

Yes, compulsory licences are stipulated under the Copyright Law. However, a compulsory licence is limited to the licence to translate and duplicate works in the field of science and literature for educational or scientific purposes, as well as for research and development.

The application for a compulsory licence shall be submitted to and granted based on the approval of the Directorate General of Intellectual Property (DGIP). Upon receiving such application, the DGIP may:

  1. require the copyright holder to translate or duplicate the relevant work by himself or herself in the territory of the Republic of Indonesia and within a specified period;
  2. require the copyright holder to grant authorisation to other parties to translate or duplicate the relevant work in the territory of the Republic of Indonesia within a specified period in the event that the copyright holder is unable to conduct such action himself or herself; or
  3. appoint other parties to translate or duplicate the relevant work in the event that the copyright holder is unable to carry out the actions as mentioned in point 2.

A compulsory licence shall only be granted if three years has passed from the announcement of the relevant work and no translation or duplication of such work has been made in the territory of the Republic of Indonesia.

Are licences administered by performing rights societies? How?

Yes, pursuant to the Copyright Law, a creator, copyright holder or neighbouring rights holder must be a member of a collective management institution in order to collect their economic right and receive fair compensation from any party that uses his or her copyright and neighbouring right in a commercial manner.

Moreover, specifically for the management of royalty from songs and music, there are two national management institutions that have been formed to represent the interest of the creators and the neighbouring rights holders. These national management institutions are authorised to charge, collect and distribute royalties from the commercial users.

Termination

Is there any provision for the termination of transfers of rights?

There are no specific provisions for the termination of the transfer of right under the Copyright Law. However, there is a time limitation for copyright over books and other literary works, songs and music (with or without lyrics) that has been transferred by virtue of an outright buyout agreement or timeless assignment. The Copyright Law stipulates that a copyright over books and other literary works, songs and music (with or without lyrics) that has been assigned or transferred by virtue of an outright buyout agreement (sold flat), or timeless assignment, shall be returned to the creator or original copyright holder when the relevant arrangement has reached 25 years. The same will also apply to the performers’ economic right over songs and music in which he or she performed.

Recordal

Can documents evidencing transfers and other transactions be recorded with a government agency?

Yes. The Directorate General of Intellectual Property (DGIP) organises the recordation of assignment of copyright and neighbouring rights products. However, before applying for recordation of a copyright assignment, the applicant must first record the relevant copyrighted work with the DGIP, as one of the requirements for the recordation of copyright assignment is proof of ownership of the relevant copyright in the form of a copy of the copyright recordation letter issued by the DGIP.

Law stated date

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