What is a Blanket Licence? The Legal Framework for Commercial Use of Music

What is a blanket licence? A blanket licence is a legal authorisation to use songs and/or music for commercial purposes under a single, comprehensive licensing scheme, without having to obtain separate permission from each songwriter, performer, or record producer.

This licence applies to the use of music in commercial public spaces, such as cafés, hotels, shopping centres, offices, and other business premises where music forms part of daily operations.

Why is a blanket licence necessary?

In practice, many business owners are not aware that playing music in a commercial setting is still considered commercial use, even when the music is only used as background sound.

From a copyright law perspective, this type of use still triggers licensing obligations. A blanket licence is intended to provide legal certainty while also simplifying the process of obtaining permission to use music in commercial spaces.

Legal basis in Indonesia

In Indonesia, the blanket licence forms part of the national system for managing music royalties. Its legal basis includes:

• Law No. 28 of 2014 on Copyright

• Regulation of the Minister of Law and Human Rights No. 27 of 2025, which governs the use of songs and/or music in both analog and digital formats

The collection and distribution of royalties are handled through Lembaga Manajemen Kolektif Nasional (LMKN) in cooperation with Collective Management Organisations (CMOs), based on data relating to music usage in commercial public spaces.

How does a blanket licence work?

In general, the mechanism operates as follows:

1. A business uses music in a commercial public space

2. The system determines royalty obligations based on the type and characteristics of the business.

3. Businesses pay royalties under a blanket licence scheme.

4. The system then distributes royalties to songwriters, performers, and record producers

This system allows businesses to avoid managing licences on a song-by-song basis while still meeting their legal obligations.

Practical issues in implementation

In practice, the application of blanket licences continues to raise discussion, particularly regarding the adjustment of tariffs across different business sectors. Not all businesses rely on music to the same extent, which has led to calls for a more proportionate system—one that remains fair to rights holders without overlooking the realities faced by business operators.

So, what is a blanket licence?

A blanket licence is a legal mechanism that regulates the lawful use of music in commercial spaces. A clear understanding of this concept helps businesses comply with copyright law and manage legal risk effectively

Sources & legal references

• Law No. 28 of 2014 on Copyright

• Regulation of the Minister of Law and Human Rights No. 27 of 2025