This article is Part 3 of our three-part series examining the most significant developments under Indonesia’s proposed Copyright Bill. In this final installment, we turn to the Bill’s formal recognition of smart contracts as legally valid instruments for the licensing and transfer of copyright

3. Smart Contracts as Recognized Intellectual Property (“IP”) Licensing Instruments

The draft Bill also explicitly recognizes smart contracts (a self-execute program on distributed ledger technology) as valid instruments for licensing and/or transferring copyrights.

According to the Copyright Bill, smart contracts could apply to perpetual transfers, automatic licenses, and sale agreements involving creative works such as text, music, and other artistic outputs.

Key insights:

• Smart contracts may enhance transparency, efficiency, and traceability in IP transactions, particularly where automated royalty distribution or usage-based licensing is involved.
• The Bill alludes to the possibility of automated transfers triggered by specific events (such as the death of a creator), although no detailed framework is provided.
• The Bill also hints at “automatic” licensing transfers possibly triggered by certain events (such as the creator’s demise), though it remains unclear how smart contracts must be registered or formalized with the Ministry of Law (as required for certain IP instruments).

Practical implications for businesses:

• Questions around cross-jurisdictional enforcement, data privacy, and platform liability for automated license execution remain unresolved.
• IP owners may benefit from developing capabilities to negotiate and implement blockchain-based licensing mechanisms.

What Comes Next

Indonesia’s new Copyright Bill represents a meaningful step toward modernizing the country’s intellectual property framework in response to technological innovation and evolving creative markets. By addressing AI-assisted creations, automated licensing mechanisms, and long-standing gaps in creator protection such as Artist’s Resale Rights, the Bill signals a broader effort to align copyright law with contemporary modes of creation and exploitation.

For businesses and creators, these developments present both opportunities and areas requiring careful attention. While the Bill opens pathways for greater legal recognition, enforcement, and economic participation, it also leaves several interpretative and operational questions to be resolved through implementing regulations, judicial practice, and market standards. Early engagement with the evolving framework, including reviewing licensing structures, documenting human involvement in AI-assisted works, and monitoring enforcement mechanisms, may help stakeholders navigate the transition more effectively.

As the legislative process continues, ongoing dialogue between regulators, creators, technology providers, and market participants will be essential in shaping a copyright regime that supports innovation while safeguarding legitimate rights.

If you wish to explore how smart contract–based licensing and automated copyright transfers may affect your business model, licensing strategy, or compliance obligations, please reach out to us at mail@bagusenrico.com.

This concludes our three-part series on Indonesia’s proposed Copyright Bill. Across AI-assisted creations, Artist’s Resale Rights, and smart contract–enabled licensing, the Bill reflects a broader effort to align Indonesia’s copyright framework with contemporary technological and market realities.