The aim of this research is to know how is the realization of royalty collected by SELMI as a Collective Management Organization (CMO). Royalty is the payment which has been given to copyright owner. Collective Management Organization (CMO) plays an important role in the collecting of performing royalties, for the benefits of both the author or copyright holder as well as the music industry. Collection of royalties are based on the license agreement which are made and approved by parties such as copyright holders and users of commercial music as stipulated in Act No. 28 Year 2014 on Copyright. The procedures of collecting royalties by Collective Management Organization (CMO) are done according to the license agreement made by both parties. In this respect, CMO represent copyright holders to collect royalties and distribute them to copyright holders. In case of copyright dispute arise, there is any alternative dispute resolution available to find a solution beneficial for both parties. However there are still many cases that use court as a dispute resolution. In the case of intellectual property rights suvh as copyright, there is a special institution called BAM HKI established to be used as a forum to resolves any disputes relating to intellectual property rights. Therefore, the dispute resolution outside the court as through the Abiration and Alternative Dispute Resolution, the process of settlement will be easier and relatively cheaper in cost.