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Artists' resale royalty right legislation or Droit de Suite

Droit de Suite will be implemented in the UK from 1st January 2006. It does not directly affect writers as explained in the 'comments' below but is an issue writers should be aware of. 

This information is lifted from UK government documents

Who will be affected by this?

You will only be affected by Droit de Suite if:

You sell (definition below) an original work of art (definition below);
At the time you sell such a work of art the artist or creator is still alive.

From 2010 the right will apply to the works of dead artists up to 70 years after death.

What is an original work of art?

The EU directive states:

An 'original work of art' means works of graphic or plastic art such as pictures, collages, paintings, drawings, engravings, prints, lithographs, sculptures, tapestries, ceramics, glassware and photographs, provided they are made by the artist himself or are copies considered to be original works of art. (Plastic art is taken to mean forms such as sculpture)

The government is still deciding whether to follow this definition or that used in existing UK copyright legislation. Paintings, drawings and sculpture are included within the definition. However, the new law may apply to other forms of art.

When is a sale not a sale?

The royalty applies to all re-sales, i.e. all sales that follow the first transfer of ownership by the artist. It does not therefore apply to the first sale by the artist to the dealer.

How much Droit de Suite will be payable?

The levy is calculated on the sale price, not on profit, as follows:

No droit de suite is payable on:

Re-sales for less than €3,000
Sales where the seller has acquired the work directly from the artist and resells it within 3 years for less than €10,000

Rates for all other sales:

4% for the portion of the sale price up to €50,000
then add 3% for the portion of the sale price between €50,000 & €200,000
then add 1% for the portion of the sale price between €200,000 & €350,000
then add 0.5% for the portion of the sale price between €350,000 & €500,000
then add 0.25% for the portion of the sale price between €500,000 & €2,000,000

The portion of the sale price above €2,000,000 will not incur the levy because the total amount of Droit de suite payable cannot exceed €12,500.

Comment

This has sparked several debates, summarised below.

The argument for droit de suite goes that records and books are copies of the original work so the artist obtains a royalty with each copy sold. However, a work of art is unique and the artist does not enjoy the benefit of further trades of their creation.
Under these rules, writers and musicians do not get an extra royalty when their works are sold onto another person.
Some argue that the creator of an objet d’art already has it easy when it comes to enforcing their copyrights. Painters and sculptors are better placed than most other creators of intellectual property because their work is manifest in a unique, physical object.
There is no charge on second hand cars for the creative work of the maker and the architect does not get another fee when a house they designed is sold.

Copyright information 

The relevant UK office

Intellectual Property and Innovation Directorate
Room 3B38
The Patent Office
Concept House
Cardiff Road
Newport
NP10 8QQ

email: droitdesuite@patent.gov.uk

The UK based web sites.

http://www.patent.gov.uk/copy/notices/2001/resale.htm

http://www.vaga.co.uk/index.php?main_section=16&textentryid=73

http://www.publications.parliament.uk/pa/cm199899/cmselect/cmeuleg/34-v/3405.htm

http://www.artscouncil.org.uk/publications/publication_detail.php?sid=17&id=179

http://www.rics.org/Property/Artsandantiques/Droit%20de%20Suite.html

http://www.artquest.org.uk/artlaw/droitdesuite/ukartistresaleright.htm

http://www.artquest.org.uk/funding/advice/droitdesuite.htm

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