Debate over music royalty system resurfaces<\/p>\n
By Johannes Simbolon<\/p>\n
JAKARTA (JP): Good news! The song You Came into My Life, which
\nwas co-written by Indonesian songwriters Titiek Puspa and James
\nF. Sundah and Scorpions members Rudolf Schenker and Klaus Meine,
\nwill be available to international audiences soon.<\/p>\n
The song is one of 10 on the German rock band's newest album,
\nPure Instinct, which is to be released worldwide on May 20.<\/p>\n
\"They are already famous in Europe. People there keep asking
\nabout them 'Who are Titiek Puspa and James F. Sundah?'\" said
\nRudolf Schenker at a recent press conference to promote the new
\nalbum at Holiday Inn Crowne Plaza.<\/p>\n
Titiek and James signed a contract on royalties with the BMG
\npublishing company in March in Jakarta.<\/p>\n
It is a major landmark for the Indonesian pop music industry.
\nFirstly, it marks the entrance of Indonesian musicians in the
\ninternational market. Many Indonesian musicians have had overseas
\nsuccess before, like winning international singing contests, but
\nnone can compare with You Came into My Life in terms of reaching
\ninternational audiences. The name of Scorpions undeniably counts.<\/p>\n
Secondly, the occurrence has also reawakened the debate over
\nthe royalty system in Indonesia's music industry.<\/p>\n
You Came into My Life is one of over 40 songs composed by top
\ncomposers from Europe, the U.S, and Asia during the Pacific
\nHarmony in October and November, 1995 in Bali.<\/p>\n
The songwriter gathering not only aimed at providing
\nIndonesian composers the opportunity to meet world-class
\ncomposers, to learn from them and compose melodies which have the
\npotential of becoming international hits with them, but also
\npromoted the application of royalties in Indonesia.<\/p>\n
The melodies composed during the gathering were to be recorded
\nand released by international firms, with the songwriters
\nreceiving royalties according to the royalty system applied
\ninternationally.<\/p>\n
Then the composers in the Bali gathering called on local music
\ncompanies to apply the royalty system, otherwise they would turn
\ntheir backs on them.<\/p>\n
The system followed by Indonesian music companies has long
\nbeen dismissed as unfair. It has made recording companies
\naffluent but left composers, who are the backbone of the
\nindustry, in poverty.<\/p>\n
Rights<\/p>\n
Two rights are covered in the international system: performing
\nrights and mechanical rights. A performing right is the right of
\na composer to receive a royalty from anyone who performs his or
\nher song for commercial purposes by singing it or playing a
\nrecording of the song in public. A mechanical right is the right
\nof a composer to receive royalties from the reproduction of his
\nor her songs in the form of cassettes, compact discs, laser
\ndiscs, mini discs, CD Rom, etc.<\/p>\n
In Indonesia, performing rights have been well applied since
\nthe establishment of the Indonesian Creativity Foundation in
\n1990. The agency serves to collect a \"music fee\" from music users
\nand pay composers. In the beginning, few were willing to
\nacknowledge performing rights and pay a fee to the agency. Now,
\nit collects a lot of money each year.<\/p>\n
Mechanical rights have yet to be applied properly. Thus far,
\nlocal music companies prefer the flat-rate system to the royalty
\nsystem. The amount of payment is based on deals between recording
\ncompanies and composers instead of on the number of cassettes or
\ndiscs sold. In most instances, recording companies get their way
\nin negotiations. Desperate for cash and to have their songs
\nproduced, composers can't help but accept any deal offered by
\ntheir recording companies.<\/p>\n
The agreement between James, Titiek and BMG illustrates how
\nmechanical rights work under the royalty system.<\/p>\n
James told The Jakarta Post that royalties from his mechanical
\nrights for Pure Instinct varies from country to country. In
\nEuropean countries, for example, the royalty is between 6 percent
\nto 10 percent of the price of each cassette, CD, laser disc, mini
\ndisc and CD Rom sold. In the U.S., the royalty is between 6
\npercent to 11 percent, and in Asia it is up to 12 percent.<\/p>\n
The composers of You Came into My Life will share the
\nroyalties with the composers of the other nine songs on the
\nalbum. Thus, You Came into My Life will net only a 10th of the
\ntotal royalty. Next, since the song was co-composed by James,
\nTitiek and the two Scorpions' members, each of them will get one
\nfourth of the royalty from the song.<\/p>\n
How will James and Titiek monitor album sales and collect
\ntheir royalties? Their producer, BMG, will do it on their behalf.
\nThe agency will send them the sales results as well as a royalty
\nevery three months. It will charge James and Titiek 30 percent of
\nthe royalty as a service fee.<\/p>\n
\"Usually, a producer charges up to 50 percent. BMG will charge
\nonly 30 percent this time as a good gesture to Indonesian
\nmusicians. They might find many potential composers who they want
\nto sign up,\" said James.<\/p>\n
If each cassette cost US$10 and the royalty is 8 percent then
\nthe royalty totals 80 cents, meaning each of the 10 songs will
\nearn the composers 8 cents. Since You Came into My Life was co-
\nwritten by four persons, the royalty for James and Titiek is 2
\ncents each. After a 30 percent commission for BMG, each of them
\nwill receive 1.4 cents per cassette.<\/p>\n
The sum appears small, but if Pure Instinct sells 20 million
\ncopies as previous Scorpions albums have, James and Titiek will
\nreceive a big sum.<\/p>\n
An equal royalty payment for all songs is called a pro rata
\nsystem. Under the flat-rate system, there is no equal payment.
\nThe amount a composer receives depends on his or her popularity.
\nA composer who has just had a hit will be offered millions of
\nrupiah for his next new song, which will then be released in a
\ncomposition of lagu jagoan or top songs. The amount little-known
\ncomposers are paid can be as little as Rp 50,000 ($21.50) per
\nsong, and their songs will be included on the cassettes or discs
\nas lagu bandit (literally \"bandit song\") or supplementary songs.<\/p>\n
Reluctance<\/p>\n
One plus point in the royalty system is that it gives
\ncomposers the assurance that they can make a living from
\nsongwriting. They can seriously pursue their careers and
\nbe earnest about writing good songs. The public can expect the
\nproduction of quality songs.<\/p>\n
Under the flat-rate system, the career of a songwriter is
\nmarked with uncertainty. A beginner whose song suddenly hits the
\ncharts is unable to reap the benefits of such a hit since the
\nrecording company obtained the rights to the song cheaply. A
\ncomposer who has just had a hit will be offered big money by the
\ncompanies for any new song, but once the composer has a flop, the
\nrate of payment will instantly drop. As a result, perturbed by a
\nlack of income, song writers are often unable to concentrate on
\ntheir work and fail to produce good songs. It is no wonder the
\nIndonesian pop music industry rarely produces quality songs.<\/p>\n
Who is to blame? The recording companies, say songwriters.
\nThey say the companies are unwilling to apply the royalty system
\nfor fear that their profits will decrease. In response, recording
\ncompanies say the royalty system cannot be applied because not
\nall musicians like it.<\/p>\n
\"Under the royalty system, a famous composer would receive the
\nsame amount of royalty as an unknown composer. Are famous
\ncomposers in this country ready for that?\" Arnel Affandi, general
\nmanager of the Indonesian Recording Industry Association, once
\ntold the Post.<\/p>\n
Arnel says the application of the royalty system is also
\nhindered by the lack of knowledge about royalties on the part of
\npeople working in the local music industry, including composers,
\nsingers and recording company owners. In 1990, he sent a
\nquestionnaire on royalties to 500 musicians and recording
\ncompanies.<\/p>\n
\"As it turned out, only one person knew exactly what a royalty
\nwas. He is singer Acil Bimbo, a law graduate,\" said Arnel.<\/p>\n
Obviously some people, either musicians or recording
\nindustries, are reluctant to apply the royalty system. But, BMG's
\noffer of a discounted producer's fee to Indonesian songwriters is
\na clear message that international music industries are ready to
\nset foot in Indonesia. Indonesians will thank them if they help
\npromote local musicians. However, many people fear international
\nmusic industries will make contracts with all of the composers
\nhere and gradually gain control over the Indonesian music
\nbusiness, which is worth a profit of Rp 1 trillion yearly. Under
\nthe royalty system, Indonesian composers and singers would sing
\nIndonesian songs and earn huge profits.<\/p>\n
Thus, there is no choice any longer but to prepare everyone in
\nthe music industry for the royalty system. Otherwise, the local
\nmusic industry will lose in the incoming free competition.<\/p>",
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