LMKN and USEA sign MoU to develop digital Background Music licensing ecosystem
Jakarta (ANTARA) - The National Collective Management Agency (LMKN) and USEA Pte. Ltd., part of the U-NEXT HOLDINGS group, signed a Memorandum of Understanding (MoU) to explore cooperation in developing the digital Background Music (BGM) licensing ecosystem in Indonesia.
Chairperson of LMKN, the Related Rights Owners, Marcell Siahaan, said the signing of the MoU marks the first step towards promoting a more modern, transparent, and technology-based commercial music licensing system in Indonesia.
“USEA and LMKN agree to explore various development aspects, ranging from digital licence administration, reporting of music usage, pilot project implementation, industry involvement, to technical discussions on strengthening the national music royalty ecosystem,” Marcell Siahaan said in a press release received in Jakarta on Friday.
Marcell stated that the collaboration places USEA as a trusted technology partner to support the development of the music ecosystem, while continuing to respect LMKN’s authority as the official body managing national music royalties.
To date, he said, the management of licence and administration of music in many business premises is still done manually at outlet level, with the broad geographic spread of Indonesia and the growth of the business sector in various regions presenting challenges.
Therefore, the development of a digital ecosystem is seen as a more efficient and integrated solution.
The system to be explored will support business licence registration, calculation of licence fees, payment administration, issue and renewal of licence certificates, music monitoring, reporting of music usage, royalty reporting, and ecosystem analysis.
“This cooperation opens up opportunities for using music monitoring technology and audio recognition to support more accurate and credible reporting of music usage in commercial spaces,” said Suyud Margono.
According to Jerry Chen, USEA wishes to contribute as a trusted technology partner for LMKN, with support from the innovation and next-generation technology capabilities of U-NEXT HOLDINGS.
‘We believe the future of music licensing is not only about administration and compliance. It is also about how music can be managed strategically to support business, strengthen brand identity, enhance customer communication, and create a consistent experience across many locations,’ said Jerry Chen.
Meanwhile, M. Noor Korompot, also a Commissioner of LMKN, added that the collaboration is expected to strengthen the modernization of the music licensing system and royalty distribution in Indonesia, so that it is more adaptable to technological developments and industry needs.