Balihow – The rising trend of direct licensing among songwriters is allegedly rooted in their disappointment with Collective Management Organizations (CMOs).
Ariel, the vocalist of NOAH, shared his thoughts on this matter in an Instagram post, as reported on Monday, March 24, 2025.
Read also: Ariel NOAH Admits Inability to Implement Direct Licensing and Need for CMOs
Ariel NOAH suspects that songwriters are turning to the direct licensing system due to dissatisfaction with the operational mechanisms of CMOs in distributing their economic rights.
“I assume direct licensing arises from the disappointment of songwriters towards CMOs, which are supposed to execute their economic rights,” said Ariel NOAH.
Read also: Reasons Ariel NOAH Disagrees with Royalty Payments via Direct Licensing Mechanism
Ariel NOAH pointed out several aspects that seem to be sources of disappointment for song owners.
“From reports that are considered insufficiently detailed, to mechanisms that feel primitive, non-digital, not easy, and so on,” Ariel stated.
Read also: When Ariel NOAH Speaks About Direct Licensing for Music Royalties…
Ariel added that distrust in CMOs is a major factor driving songwriters to choose the direct licensing route.
“I think this is where the initiative for direct licensing, as exemplified now, comes from. Or, permission is agreed upon and transacted directly with the songwriter without going through the CMO mechanism, based on disappointment and distrust towards CMOs,” Ariel continued.
Read also: Ahmad Dhani to Ariel NOAH Regarding Song Licensing: Don’t Be So Wealthy
Ariel NOAH also mentioned the planned revision of the Copyright Law, which is expected to provide a fairer solution for all parties.
“As we know, the Copyright Law will soon be revised. Hopefully, all parties will be involved, and a fair solution for everyone will be found,” Ariel NOAH concluded.
Read also: Ahmad Dhani’s Message to Ariel NOAH and Others Regarding Royalties: Don’t Be Whiny, Learn from the Housewives
What is Direct Licensing?
Direct licensing is a direct licensing system between the songwriter and the party wishing to use their work, without going through a CMO.
In this system, the transaction of permission to use the song is carried out directly between the two parties, so that the songwriter has full control over their copyright.
Read also: Ariel NOAH Responds to Ahmad Dhani Who Calls the Copyright Law Judicial Review to the Constitutional Court Childish
This direct licensing phenomenon is in the spotlight in the Indonesian music industry, especially for songwriters who feel that the existing royalty distribution system is still not transparent and efficient.
With the planned revision of copyright regulations, many parties hope that the best solution can be found for the welfare of songwriters and the music industry ecosystem as a whole.
Ringkasan
Ariel NOAH suggests that the increasing adoption of direct licensing by songwriters stems from their dissatisfaction with Collective Management Organizations (CMOs). He believes that distrust arises from issues such as insufficiently detailed reports and outdated mechanisms used by CMOs in distributing economic rights.
This direct licensing approach allows songwriters to transact directly with parties wishing to use their work, bypassing CMOs and giving them greater control over their copyrights. The anticipated revision of the Copyright Law is expected to address these concerns and potentially provide a fairer solution for all stakeholders in the music industry.