What Is a Blanket in Music? Understanding Blanket Licenses and Music Royalties

What is a blanket in music? in music law practice, the term blanket usually refers to a blanket license. It is a collective license that allows a business to play or use multiple songs at once under a single management system, without having to ask permission from each songwriter individually.

This type of license is commonly used by hotels, restaurants, cafés, entertainment venues, and other public spaces where music is part of the business operation.

Why Is a Blanket License Needed?

The issue is actually quite simple:
a lot of music is played, and a lot of creators are involved.

If every song had to be licensed one by one, the system would be impractical. That’s where a blanket license comes in. With a single license:

• Music users don’t have to manage permissions song by song

• Songwriters still receive their economic rights

• Copyright management becomes more practical and centralized

In short, one license covers many works.

Blanket License vs. Royalties: Different but Connected

A blanket license is not the same as a royalty.

A blanket license is the permission to use music, while royalties are the economic compensation paid for that use. Royalties are collected through the blanket licensing system and then distributed to songwriters and rights holders by authorized collective management organizations.

Who Manages Blanket Licenses in Indonesia?

In Indonesia, music royalty management is handled through the National Collective Management Organization (LMKN) in coordination with Collective Management Organizations (LMK).

LMKN is responsible for collecting and distributing royalties from the commercial use of music, including royalties generated through blanket licensing schemes.

Why Is the Blanket License Often Questioned?

As reported by VOI.id, the Indonesian Hotel and Restaurant Association (PHRI) has raised concerns about blanket licensing practices, particularly regarding:

• How royalties are collected

• The basis for tariff calculation

• Transparency in royalty distribution

What is being questioned is how the system is implemented, not the concept of the blanket license itself.

Legal Basis for Blanket Licenses

Blanket licenses are grounded in:

• Law No. 28 of 2014 on Copyright, especially provisions on the economic rights of creators

• Implementing regulations governing royalty management by collective management organizations

From a legal standpoint, playing music in public spaces for business purposes qualifies as commercial use.

So, what is a blanket in music?

A blanket in music refers to a collective licensing mechanism that allows music to be used broadly in commercial activities, while also serving as a structured way to collect royalties for songwriters.

The focus is not on individual songs, but on legal permission to use an entire music catalog within a single, lawful system.