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HomeTopicsArts and CultureCosta Rica Lawmaker Challenges ACAM Over Music Royalty Fees

Costa Rica Lawmaker Challenges ACAM Over Music Royalty Fees

A ruling-party lawmaker has opened a public challenge against ACAM, the association that collects music copyright payments in Costa Rica, raising questions that matter directly to bars, restaurants, hotels, cafés and small businesses that play music for customers. José Miguel Villalobos Umaña, a deputy from Pueblo Soberano, questioned how the Asociación de Compositores y Autores Musicales de Costa Rica sets its fees and distributes the money it collects from commercial establishments that use protected music.

The dispute puts a long-running business complaint back into the political spotlight: many companies, including expat-owned restaurants, beach bars and tourism businesses, are required to pay music royalties if they play protected music in spaces open to the public.

Villalobos made the comments during his political control time in the Legislative Assembly. He questioned whether ACAM can accurately know how often specific artists’ music is played inside businesses and argued that collected money should be distributed in proportion to the actual use of the works.

He also said he wants the Assembly to open an investigative commission into ACAM’s operations. His criticism was unusually direct, warning that ACAM should “get ready” because he intends to scrutinize the group. ACAM responded with a statement from its president, Arnoldo Castillo Villalobos, rejecting the lawmaker’s claims and defending the association’s role in Costa Rica’s copyright system.

The association said it is false to suggest that ACAM collects fees without knowing how to distribute the money. Castillo said ACAM uses registration systems, monitoring, use reports, repertoire lists, information from music users, digital platforms and approved distribution rules to allocate royalties.

ACAM also said it is a nonprofit association with externally audited financial statements and is subject to oversight by the Intellectual Property Registry, part of the National Registry under the Ministry of Justice and Peace. “The music is not free,” Castillo said, arguing that when a commercial activity uses music to create atmosphere, attract customers or strengthen a business, the people who created that music should be paid.

ACAM says it represents about 5,000 Costa Rican authors, composers and publishers, and manages rights for millions of creators worldwide through reciprocal agreements with similar organizations. For business owners, the most important point is that nothing has changed yet. Villalobos’ challenge does not suspend the existing licensing system, and ACAM’s fees remain in place unless the law, regulations or court rulings change.

ACAM’s own guidance says a business must obtain a license when protected music is used in a commercial location. The association says the cost depends on factors such as the type of business, the intensity of music use, capacity, amenities and the minimum salary used as a reference.

That means a small café using background music, a hotel bar with live music, a restaurant playing playlists, or a business using radio or television in a public area may still need to check whether it falls under ACAM’s licensing rules.

The debate is not new. Previous legislative proposals have tried to narrow royalty obligations for businesses that use music mainly as background atmosphere rather than as the core of their business. Supporters of those changes have argued that micro and small businesses face an extra cost even when music is only incidental.

But Costa Rica’s copyright framework gives collective management organizations a recognized role in collecting and distributing payments for public use of protected works. Legal opinions and court rulings have repeatedly treated public use of music in commercial settings as something that can require authorization and payment.

The new political pressure could still matter. If the Assembly opens an investigation, ACAM may face demands for clearer explanations of its rate structure, distribution formulas and oversight. If lawmakers move toward a reform bill, the fight could become a larger debate over how to balance creator rights with the operating costs of small businesses.

For now, business owners should treat the controversy as a warning to review their own situation rather than as a reason to stop paying. Those using music in customer-facing spaces should ask for a written explanation of any fee calculation, keep payment receipts, and seek legal or accounting advice before ignoring a royalty notice.

The issue is likely to draw attention beyond the music industry because it reaches into everyday commerce. In Costa Rica’s tourism towns, where restaurants, bars, hotels and shops often rely on music as part of the customer experience, any change to ACAM’s fees could affect thousands of small operators.

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Steven Hodel
Steven Hodel
Steven Hodel is the Tennis Correspondent for The Tico Times, covering the ATP and WTA tours and Latin American players from his base in Costa Rica. Reach him at steve@ticotimes.net or on X at @theticotimes.
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