Legal Analysis of Royalties as Joint Marital Property and Their Distribution After Divorce

Abstract

Royalties are compensation granted to holders of intellectual property rights. Payments are generally made periodically, calculated based on a percentage of revenue or the frequency of use of the work. To date, no specific regulations explicitly govern royalties as part of marital joint property. The lack of clarity in legislation creates uncertainty in determining the status and distribution mechanism of royalties in divorce cases. This study aims to examine whether royalties generated from copyrighted works during marriage can be categorized as joint property and how they should be distributed after divorce. The research method used is normative, focusing on legal studies through written norms and rules found in various laws, legal doctrines, and court decisions. The research also adopts a statute approach and a case approach. Data collection techniques include observation, literature review, and document analysis, with qualitative data analysis. The study results indicate that, in the case of Inara Rusli and Virgoun, royalties cannot be classified as joint property if there is no agreement or tangible evidence of the spouse’s contribution to the creation of the work, as stipulated in Article 16(1) of the Copyright Law and Article 35(1) of Law No. 1 of 1974 on Marriage. Furthermore, the ruling in case No. 166/PDT.G/2023/PA.JB, which established a 50%-50% royalty division, is considered disproportionate, as the court did not take into account the mechanism of copyright transfer as stated in Article 16(1) of the Copyright Law or the possibility of differing distribution as regulated in Article 91(3) of the Compilation of Islamic Law.