IP Licensing for Restaurants & Theme Parks: An Investment or a Burden? - AFFA IPR

IP Licensing for Restaurants & Theme Parks: An Investment or a Burden?

Intellectual Property

Indonesian laws regulate the granting of Exclusive Rights over Trademarks, Industrial Designs, or Copyrights, where only the owner and/or creator have the right to derive economic benefits from the Intellectual Property (IP). Therefore, it can be concluded that any restaurant, venue, or theme park wishing to utilize such IP must obtain permission. But how does it work in practice?   However, it is still common to find restaurants and venues utilizing well-known IP elements such as characters from popular animations, superheroes, or movie themes without official permission from the owner. For example, themed restaurants inspired by popular movies or series that use their names and menu concepts, or amusement parks displaying statues of characters without a license. While these may appear attractive and draw visitors, such actions violate the Exclusive Rights of IP owners and may lead to legal lawsuits.   The Importance of Licensing IP Usage   Such violations harm IP owners and create an unhealthy business environment. Entrepreneurs who disregard Intellectual Property Rights neglect the significant investments made by IP owners in creating their works, from the creative process to marketing efforts.   So, what’s the solution? It’s as simple as contacting the IP owner and obtaining usage rights formalized in a Licensing Agreement. This ensures legal usage of the IP and helps determine if another party in Indonesia has already been granted a license, potentially allowing further collaboration for authorization.   You might also want to read: Indonesia’s IP Odyssey: Unraveling the Ins and Outs of IP License Agreement Recordal   By obtaining a license, you can get the following three key benefits:   Avoiding Legal Risks Licensing protects businesses from lawsuits that may result in hefty fines or even closure. Enhancing Credibility Official licensing demonstrates a commitment to ethical business practices and respect for others’ rights. Building Long-Term Partnerships IP owners often support the marketing of licensed businesses, providing strategic advantages for expanding into international markets. You could even become the trusted partner for operating this business in Indonesia.   The Public’s Role in Respecting IP   Besides business operators, the public also plays a crucial role in safeguarding Intellectual Property Rights. As consumers, we should be more critical when choosing places to visit. If you encounter a restaurant, venue, or theme park using a well-known IP without authorization, consider the following:   Avoid Visiting Supporting businesses that violate IP rights only worsens the problem. Report Violations You can report violations to the relevant authorities or directly to the IP owner to initiate legal action.   The easiest way to verify whether a venue has a formal collaboration with the IP owner is by checking for the © “IP Owner’s Name” label on its publication. Because obtaining such authorization often involves significant effort and cost, businesses are likely to display this label. Not only does it reflect official usage, but it also serves as a badge of pride that their business has earned the trust of a major IP name. Licensed businesses also freely promote such partnerships without fear of secrecy.   Criminal Sanctions for Unauthorized IP Usage   Running a business that uses IP without permission in Indonesia may result in criminal penalties, depending on the type of violation:   Trademark Infringement Anyone who unlawfully uses a trademark identical to a registered one belonging to another party for similar goods and/or services may be subject to: Imprisonment: Up to 5 years. Fine: Up to IDR 2 billion. Copyright Infringement Anyone who unlawfully and/or without permission from the creator or copyright holder distributes a work or its copies for commercial purposes may be subject to: Imprisonment: Up to 4 years. Fine: Up to IDR 1 billion.   For more severe violations, such as piracy, penalties may include imprisonment of up to 10 years and/or fines of up to IDR 4 billion. Furthermore, should you need help obtaining a license for well-known IPs, including drafting proper licensing agreements, feel free to contact us via email at [email protected].

The Billion-Stream Christmas Song: Mariah Carey's Seasonal Success - AFFA IPR

The Billion-Stream Christmas Song: Mariah Carey’s Seasonal Success

Intellectual Property, Copyright1 Comment

As December begins and the holiday season approaches, Mariah Carey’s iconic song, “All I Want for Christmas Is You,” can be heard almost everywhere. The festive atmosphere, from radios, cafes, hotels, offices, and shopping malls, seems incomplete without this song. If you’re a musician, songwriter, or singer, you might wonder how much royalty Mariah Carey earns annually from this song. But is it as massive as we imagine?   “All I Want for Christmas Is You” was first released in 1994 as part of Mariah Carey’s Christmas album, Merry Christmas. The song was co-written by Mariah and Walter Afanasieff, a seasoned musician, songwriter, and producer who collaborated with top artists of the era, such as Celine Dion, Boyz II Men, and Natalie Cole. However, the song initially only peaked at number twelve on the Billboard US Hot 100 Airplay chart.   The Journey to Becoming a $100 Million Royalty Song   Although it didn’t perform exceptionally well in the United States, the song skyrocketed in popularity in Europe, Japan, Singapore, Australia, and New Zealand, becoming the most-played holiday song annually. In 2001, Mariah released a remix of her Greatest Hits album. From then on, the demand for the song surged, with the original version consistently topping the charts every December from 2005 to 2008, 2019, and beyond.   According to the Associated Press, since 1994, the song has generated an estimated $100 million in royalties. This is primarily thanks to the surge in plays from streaming platforms like Spotify and YouTube, making it more accessible to listeners worldwide.   Passive Income of Up to $3 Million Per Year   As the songwriter and singer, it’s no surprise that Mariah is one of the biggest royalty earners from this song. However, she’s not the only one receiving royalties. The song has sold over 3.6 million digital copies in the United States since its release. It’s the most popular Christmas song in Europe, mainly the UK, with over 1.2 million downloads and 100 million streams. In Asia, the song ranks top on karaoke platforms and remains one of the most frequently sung Western songs.   Radio airplay and physical record sales also continue to generate royalties for the parties involved with the song. They include:   Songwriters Walter Afanasieff, the song’s co-writer, is entitled to a share of the songwriting royalties.  Record Label The song is under Columbia Records, part of Sony Music Entertainment. As the company that produces, markets, and protects the master recording, the label receives royalties from distribution and licensing agreements.  Music Producers In addition to Mariah Carey, Walter Afanasieff also acted as the song’s producer, earning royalties for the master recording.  Related Rights Supporting musicians like Dan Shea and backing vocalists (Kelly Price, Melonie Daniels, and Shanrae Price) who contributed to the recording are also entitled to royalties, as stipulated in their recording contracts.     “All I Want for Christmas Is You,” celebrating its 30th anniversary this year, shows how a single song can provide extraordinary long-term income for singers, songwriters, and other musicians. However, such income sources would not be well-managed without proper licensing agreements that regulate royalty distribution.   Thus, ensure that all your creations are appropriately documented and managed with solid licensing agreements to maximize their benefits—not just now but for decades to come. Should you need more information on Copyright recordation and licensing agreements domestically and internationally, please contact us at [email protected].