McDonald's to pay music royalties

McDonald's Indonesia, a franchisee of the American fast food restaurant, has signed a cooperation agreement with Yayasan Karya Cipta Indonesia (YKCI) to pay the copy rights for all songs played in their 24 outlets in Indonesia.

YKCI is a foundation which has successfully required over 250 entertainment establishments and restaurants to pay the copy rights royalties for both local and foreign songs.

The royalty payment is based on the 1982 and 1987 Copy Rights Law which states that every song played commercially must receive formal approval from the composer.

Bambang N. Rachmadi, chairman of McDonald's Indonesia (MI), said that MI was obliged to support music through royalty payments.

The agreement was signed on Tuesday by Bambang and the chairman of YKCI, Enteng Tanamal, at the McDonald's in CitraLand Mall.(mas)