A Review of the Principle of Freedom of Contract and Copyright Protection: A Juridical Analysis of Constitutional Court Decision No. 63/PUU-XIX/2021 concerning Full Flat-Pay (Outright Sale) Agreements in the Music Industry

Abstract

This study aimed to examine the application of the principle of freedom of contract and copyright protection in full flat-fee agreements within the Indonesian music industry, as well as to analyze the legal implications of Constitutional Court Decision No. 63/PUU-XIX/2021 on such contractual practices. The study addressed three main issues: the regulation of the principle of freedom of contract under Indonesian civil law, the concept of copyright protection within the Indonesian legal framework, and the juridical reasoning adopted by the Constitutional Court in the aforementioned decision. This research employed a normative juridical legal research method using both a statutory approach and a case approach. The analysis was based on primary, secondary, and tertiary legal materials, which were examined using qualitative legal analysis. The findings indicate that the principle of freedom of contract under Indonesian civil law is not absolute but is subject to statutory limitations, public interest considerations, and the principles of justice and good faith. In practice, full flat-fee agreements often create an imbalance in bargaining power between authors and participants in the music industry, potentially disadvantaging copyright holders. Indonesian positive law, particularly Law No. 28 of 2014 on Copyright, provides legal protection for authors, including the recognition of the reversionary right as a mechanism to safeguard creators' interests. Furthermore, Constitutional Court Decision No. 63/PUU-XIX/2021 affirms that full flat-fee agreements remain legally valid, provided that they do not contravene the principles of justice and copyright protection. The decision underscores the importance of maintaining a balance between contractual freedom and the protection of the weaker party while providing greater legal certainty and guidance for contractual practices within the music industry. Accordingly, the decision contributes to the development of a more equitable and balanced legal framework for all parties involved.