Exclusive Rights of Broadcasting Program included in Copyrights which is stipulated in neighboring rights on Article 42 Indonesia Copyrights Act 2002. A Broadcaster that holds Exclusive Rights shall have a privilege for a sport program.
There are two important issues pertaining to Exclusive Rights ; the ownership of Exclusive Rights and the Exclusive Agreement between league and channel television which excluded the other operators.
Sport Association prefer to sell the exclusive rights collectively, because can maximize the profit particularly the marketing of the game itself. Moreover the revenue of exclusive rights will be used for the activities of Association and also the grass root program in order to maintain the competition among the clubs.
Exclusive Rights Holders
According to Manual Liga Indonesia 2006 ( Indonesia League Manual 2006 ) subsection the Contribution of Badan Liga Indonesia ( Indonesia League Body ) – Participants of Competition Paragraph 4 states that Club has right according to local television broadcast, as long as there’s no national live broadcast. The conclusion, Badan Liga Indonesia (BLI) which part of Indonesia Football Association has an authority to organize the soccer games in Indonesia particularly the exclusive rights of sport program.
Moreover, BLI gives compensation Rp. 20.000.000, – to the Clubs which their game have been broadcasted nationally by broadcasters for each game. The question is whether the amount of compensation fair for the club as the organizer of the game.
Semarang Football Club a few months ago through its manager has protested with live broadcast because from 7 games that his club has participated, 6 games has broadcasted nationally, including home play games. The exclusive right of this competition has given to one of broadcasters in Indonesia. Moreover, PSIS had lost amount of money from tickets sale because of live on air. Semarang Football Club only got profit Rp 50.000.000,-. Meanwhile usually Semarang Footbal club can get Rp.200.000.000,- up to Rp 300.000.000,- each game.In Europe, the Association can lay down ‘the closed time’ in special circumstances which the game will be closed for media until the target of tickets has been sold. The juridical approach the Closed time pertinent to Article 46 EUFA Statute jo Article 71 FIFA Statute.
Article 46 EUFA Statute : “UEFA dan Member Assosiations shall the exclusive rights to authorize audiovisual and sound broadcasting transmission, as well as any other use and dissemination by picture and sound, either live or recorded, in whole or as excerpts of matches which come within their jurisdiction.”The closed time can give protection to the event organizer pertaining to ticket sale.
Restriction of Exclusive Rights
Collective Marketing will lead to oligopoly agreement which can cause the monopoly practice. Collective marketing will restrict the competition particularly reduce the amount of suppliers in industry compare to the clubs itself do the marketing. In Indonesia oligopoly agreement is incompatible with Article 4 Competition Act 1999.
BLI usually invite the broadcasters to submit proposal pertaining to sport games. The question is whether transparency in the bidding process of sport programs by BLI. In fact, the exclusive holder is always the same broadcaster from time to time.
The exclusive rights should be restricted in order to give a chance to the other broadcasters pertinent to sport programs therefore there’s no monopoly of information.
For example in Europe, the Exclusive Rights not only comply with the internal soccer organization but also Television Without Frontiers Directive and the General Competition Law Framework.
Article 3 (a) TWF Directive regulates that each member of EU shall make the specific list including major sport events which can be viewed by public free television. The restriction is to maintain balance between the viewers and public interest to get information particularly the sport major events through free television. For example Italy, that stipulated sport major events as follow : Summer and Winter Olympic Games, the Football World Cup Final, the EUFA Championship final and the Giro d’Italia.
Moreover, the Exclusive Rights must comply the General Competition Law framework particularly Article 81 (1). The exemption of exclusive rights will be permitted as long as proportional and based on public interest.
The restriction of Exclusive Rights of EU based on the amount of games on one season, amount of the games or the geographic market. In France the exclusive rights agreement between France Football Association and the broadcaster can’t be exceed 5 years.
Therefore, the exclusive rights in Indonesia shall be regulated fairly in order maintain the competition on sport industry itself and also the broadcasting industry.