In February 2024, Indonesia's Constitutional Court expanded the scope of "business premises" under Article 10 of the Copyright Law (Law No. 28 of 2014) to include digital service platforms which facilitate user-generated content ("UGC"). This landmark decision arose from a case where copyright holders, including a publishing company and recording artists, petitioned against inadequate protection from UGC platforms allowing unauthorised use of copyrighted material. The Court ruled that UGC platforms must now actively prevent copyright infringement, aligning with existing Safe Harbour Policy but imposing stricter responsibilities. Specifically, the amended Article 10 prohibits UGC platforms from facilitating the sale or reproduction of copyrighted goods without rights holders' consent, reflecting a shift towards enhanced regulatory oversight in the digital space.
Moreover, the Court's decision impacts Article 114 of the Copyright Law, which penalises entities managing business premises for copyright infringements. While petitioners sought further revisions to ensure fairness in liability distinctions between UGC platforms and users, the Court emphasised enforcing Article 114 in conjunction with the amended Article 10 to uphold copyright protection.
This decision highlights the evolving legal landscape for digital services in Indonesia, and serves as a prompt for UGC platforms to implement robust content moderation systems and cooperate closely with authorities to curb copyright violations effectively. As Indonesia navigates these regulatory adjustments, UGC platform operators face heightened compliance demands and operational adjustments to mitigate legal risks and uphold copyright integrity amidst evolving digital regulations.
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