The Artists Resale Right (ARR) also known as droit de suite (Right to Follow), has been in operation in Ireland for more than three years now. The regulations introduced in June 2006 entitle living artists to receive a royalty each time their work is resold by an auction house, gallery or art dealer.
Artists in most other European Union states have been able to benefit from the ARR for many years. Ireland and the United Kingdom were an exception as the right was not provided for by legislation. An EU Directive was passed in 2001 which obliged all EU states to introduce the right, along broadly similar lines, by 2006. Currently the right is in place in Ireland under temporary regulations with full implementation still to come.
The EU Directive on the Artists Resale Right
The EU Directive arose out of concerns that there were distortions in the EU art market arising from the inconsistent ways in which the resale right was being applied in Member States and also from the fact that four member states did not have the resale right in place at all. The European Commission proposed the Directive to harmonise droit de suite in 1996 and, despite huge opposition from the UK, it was adopted by the Council in July 2001. EU Directive 2001/84/EC came into effect across the European Union from 1 January 2006.
Each time an artists’ work is resold by an art dealer or auction house the artist is due a certain percentage of the resale price, known as the royalty. The royalty that the artist receives is based on a sliding scale, which is laid out in the following table:
4 % for the portion of the sale price up to
€ 50,000
3 % for the portion of the sale price from
€ 50,000.01 to € 200,000
1 % for the portion of the sale price from
€ 200,000.01 to € 350,000
0.5 % for the portion of the sale price from
€ 350,000.01 to € 500,000
0.25 % for the portion of the sale price exceeding
€ 500,000
The amount of royalty may not exceed
€ 12,500
Source: Article 4 of EU Directive 2001/84/EC
Timescale for implementation
In Ireland the law came into force on the 13th June 2006, so far as living artists are concerned and may be introduced as late as 2012 for the heirs of artists who have died less than 70 years previously. The option to delay the right for deceased artists is highly unusual and was included in the Directive to appease the UK art market profession, which have fiercely lobbied against the resale right. Only countries which have not had the resale right previously can chose to avail of this option.
Inalienability of the resale right
The artist’s resale right is ‘inalienable’, meaning that it can never be transferred away by the artist. This protects artists from the vulnerable position that many writers and performers find themselves in when a publisher or production company demands that they assign their copyright or waive their moral rights in a work.
Works of art to which the resale right relates
‘Original works of art’ is the term used by the Directive to describe the works that will attract the resale right. The Directive goes on to explain that this would include ‘graphic or plastic art such as pictures, collages, paintings, drawings, engraving, 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’.
Threshold
Member States can elect to set a minimum resale price that will attract the royalty payment, but this cannot be more than €3,000. Currently the threshold is €3,000 in Ireland, which discriminates against younger and less well established artists whose works sell for less than the threshold.
Payment of the royalty
It is only sales involving an ‘art market professional’ such as an agent or auction house which will be eligible for resale royalties. The seller will be the payer of the royalty but Member States may elect to require the purchaser or dealer also to have that responsibility.
Persons entitled to receive royalties
Artists will be entitled to the royalty payment, or their heirs for 70 years after death. However, Member States may elect to legislate for a collecting society to manage the royalties, collecting and distributing them on behalf of artists. Collective management is the most common international approach and the most likely one to be adopted in Ireland.
Right to obtain information
Artists, or their elected representative, will be entitled to require any market professional (sellers, buyers, intermediaries, salesrooms, art galleries and art dealers) to provide information needed to secure payment of royalties. This right to information will last for up to three years after the resale.
The Intellectual Property Unit (IPU) of the Department of Enterprise, Trade and Employment has the responsibility for drafting the Irish legislation. The IPU have a considerable amount of freedom in how they implement certain elements of the Directive. The ways in which the IPU interpret the Directive may have a significant impact on the benefit of the resale right for Irish artists.
You can download the IVARO Artists Resale Right Information Sheet here: ARR Factsheet
Artists Resale Right
The Artists Resale Right (ARR) also known as droit de suite (Right to Follow), has been in operation in Ireland for more than three years now. The regulations introduced in June 2006 entitle living artists to receive a royalty each time their work is resold by an auction house, gallery or art dealer.
Artists in most other European Union states have been able to benefit from the ARR for many years. Ireland and the United Kingdom were an exception as the right was not provided for by legislation. An EU Directive was passed in 2001 which obliged all EU states to introduce the right, along broadly similar lines, by 2006. Currently the right is in place in Ireland under temporary regulations with full implementation still to come.
The EU Directive on the Artists Resale Right
The EU Directive arose out of concerns that there were distortions in the EU art market arising from the inconsistent ways in which the resale right was being applied in Member States and also from the fact that four member states did not have the resale right in place at all. The European Commission proposed the Directive to harmonise droit de suite in 1996 and, despite huge opposition from the UK, it was adopted by the Council in July 2001. EU Directive 2001/84/EC came into effect across the European Union from 1 January 2006.
Each time an artists’ work is resold by an art dealer or auction house the artist is due a certain percentage of the resale price, known as the royalty. The royalty that the artist receives is based on a sliding scale, which is laid out in the following table:
Source: Article 4 of EU Directive 2001/84/EC
Timescale for implementation
In Ireland the law came into force on the 13th June 2006, so far as living artists are concerned and may be introduced as late as 2012 for the heirs of artists who have died less than 70 years previously. The option to delay the right for deceased artists is highly unusual and was included in the Directive to appease the UK art market profession, which have fiercely lobbied against the resale right. Only countries which have not had the resale right previously can chose to avail of this option.
Inalienability of the resale right
The artist’s resale right is ‘inalienable’, meaning that it can never be transferred away by the artist. This protects artists from the vulnerable position that many writers and performers find themselves in when a publisher or production company demands that they assign their copyright or waive their moral rights in a work.
Works of art to which the resale right relates
‘Original works of art’ is the term used by the Directive to describe the works that will attract the resale right. The Directive goes on to explain that this would include ‘graphic or plastic art such as pictures, collages, paintings, drawings, engraving, 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’.
Threshold
Member States can elect to set a minimum resale price that will attract the royalty payment, but this cannot be more than €3,000. Currently the threshold is €3,000 in Ireland, which discriminates against younger and less well established artists whose works sell for less than the threshold.
Payment of the royalty
It is only sales involving an ‘art market professional’ such as an agent or auction house which will be eligible for resale royalties. The seller will be the payer of the royalty but Member States may elect to require the purchaser or dealer also to have that responsibility.
Persons entitled to receive royalties
Artists will be entitled to the royalty payment, or their heirs for 70 years after death. However, Member States may elect to legislate for a collecting society to manage the royalties, collecting and distributing them on behalf of artists. Collective management is the most common international approach and the most likely one to be adopted in Ireland.
Right to obtain information
Artists, or their elected representative, will be entitled to require any market professional (sellers, buyers, intermediaries, salesrooms, art galleries and art dealers) to provide information needed to secure payment of royalties. This right to information will last for up to three years after the resale.
The Intellectual Property Unit (IPU) of the Department of Enterprise, Trade and Employment has the responsibility for drafting the Irish legislation. The IPU have a considerable amount of freedom in how they implement certain elements of the Directive. The ways in which the IPU interpret the Directive may have a significant impact on the benefit of the resale right for Irish artists.
You can download the IVARO Artists Resale Right Information Sheet here: ARR Factsheet