Since 2022, many old songs from previous decades have unexpectedly regained popularity. Prayojana Sudarsa explores how reversionary rights provide musicians with a second chance to profit from the works they’ve created.

Before diving into master recording ownership, let’s look at the resurgence of older songs in recent years. Take 2019, for example, when “Berharap Tak Berpisah” by Reza Artamevia, originally released in 2002, became an anthem in nightclubs across Indonesia. Similarly, some early 2000s songs by Melly Goeslaw found a second life on platforms like TikTok.

“Wow, Reza and Melly must have made a fortune since their songs went viral!” That’s what many people might assume. However, reality paints a less rosy picture. Many musicians still struggle to make a living from their recorded works. For instance, Denny Chasmala, who wrote “Berharap Tak Berpisah,” still cannot survive on royalties alone. He even had to sell his belongings when the pandemic hit in 2020.

Even though music royalties are regulated under the Copyright Law and its implementing regulations were issued in 2021, there are still many challenges in the Indonesian music industry, from upstream to downstream. At the downstream level, the collection and distribution of royalties are often delayed. Upstream, there’s a lack of balance in agreements between music labels and musicians.

One example of an imbalanced agreement is when music labels, usually the financiers of recordings (and owners of master recordings), offer a “buyout” system to musicians. This means musicians receive a payment when signing the agreement but give up all future earnings from the recording. If the song or album becomes a hit later—like the viral cases of Reza and Melly—the songwriters or musicians don’t receive any additional income. According to several senior musicians, when a song or album became a hit in the 70s–90s, they didn’t earn royalties but instead might receive a movable asset like a car as a “bonus.”

The buyout practice was common in contracts between labels and musicians, especially from the 70s to 90s, and likely continues today. Because of this, the 2014 Copyright Law introduced a provision for reversionary rights. This allows musicians to renegotiate with labels or master owners if they previously signed a buyout agreement or if their contract lacks a time limit.

With reversionary rights, labels and musicians can come to the table and re-evaluate the value of copyrights based on how the recording has evolved. For instance, if a song goes viral on social media in its 20th year, that phenomenon can be a factor in renegotiating with the label when the master recording hits its 25th year.

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