About Artist's Resale Right
What is Artist’s Resale Right (Droit de Suite)?
- Artist’s Resale Right (Droit de Suite) was introduced in the UK in February 2006 under EC Directive 2001/84.
- Artist’s Resale Right is a new intellectual property right in European law, and will entitle authors of original works of art, to a percentage of the sale price whenever one of their works is resold on the commercial art market.
Why and how was this legislation implemented?
- Artist’s Resale Right is considered by many to be an important piece of legislation that has finally given artists a right that has been enjoyed by writers and composers elsewhere in Europe for years. Whilst they regularly collected royalties every time their work was reproduced or performed, artists rarely benefited from works which dramatically increased in value and sometimes resold for far more than their original price.
- This legislation is intended to rectify this situation and provide artists a deserved portion of the potential profit.
- For many years the European Union has been lobbying to unify Droit de Suite within European Economic Area. As early as 1996, the Commission presented a proposal on how best to do so. The UK’s animosity to this legislation was vehement enough to prevent unanimous approval until the summer of 2001, when a conciliation committee dealt with the matter.
- The implementation term was fixed at 4 years and the law finally came into effect in February of 2006.
What works of art are eligible for ARR?
- Artist’s Resale Right will only apply to sales of works which are covered by standard copyright laws. At the moment these laws specify that an artist must be alive in order to collect ARR. As of 2010 (or possibly 2012) it is likely that the beneficiaries of artists who have been dead for less than 70 years (in the UK) will be eligible to collect ARR royalties. It is, therefore, advisable to take this into account when preparing for the future.
- Most tangible works of graphic or plastic art such as paintings, drawings, engravings, prints, lithographs, photographs, collages, tapestries, and items of ceramic or glassware are considered eligible.
- A copy of a work is not regarded as an eligible work unless the copy is one of a limited number which has been created by the author or under his authority.
Who receives ARR royalties?
- Because ARR is designed to benefit living artists, as much money as possible should go directly to them. Collecting societies should only keep as much money as is necessary to cover basic administrative costs. ACS is a not for profit, Community Interest Company, which has been responsible for lowering the rate of commission to 15%. It will do everything it can to keep costs down so that the maximum amount can be returned to its’ member artists.
- The resale right applies only to sales following the initial transfer of ownership by the author. If a work was never owned by the author, it can never have been initially transferred, and is not, therefore, subject to Artist’s Resale Right.
- Resale Right is not assignable and can only be transferred upon death to the next of kin or a charitable association (once derogation has been implemented).
- In the case of a work of joint authorship, the resale right shall belong to the authors as owners in common,
How are royalties calculated?
- Royalties are calculated based on a sliding scale of percentages, which has been formally established by the European Union. This table is clearly displayed throughout our website.
- No single resale royalty payment can exceed € 12, 500.
- Artist’s Resale Right is VAT exempt.
What is a Collecting Society?
- A collecting society is a legally incorporated body, overseen by Companies House, which has been authorised to collect Artist’s Resale Right (Droit de Suite) on behalf of eligible artists.
- There are currently three operational collecting societies in the United Kingdom: Artists’ Collecting Society (ACS), Design and Artists Copyright Society (DACS), and Artists’ Rights Administration (ARA). ARA only collects on behalf of Russian artists whose work is sold in the UK.
- The artist maintains the right to choose which collecting society he would like to administer his ARR. A dealer or a gallery owner can advise, but it is up to the artist to make the final decision.
- It is not possible to be a member of more than one collecting society.
- ARR can only be managed by an official collecting society and not by individuals.
- If an artist accidentally signs up with more than one collecting society, he is automatically a member of the first society that he joined. However, if he wishes to alter his decision, he must notify all parties involved (in writing) to inform them of his decision over who he would like to mandate.
- NB. This can cause some complications as there may be up to a three month notification period before the new collecting society can begin administering royalties for the artist. (Please consult the details of your agreement). Therefore, it is advantageous for the artist to make an informed decision about which collecting society he would like to work with from the outset.
Please find more information on the Statutory Instrument at the Patent Office's website.
Please click here for more general information on Droite De Suite
Sources include The Patent Office’s Statutory Instrument & European Visual Arts Organisation
