Artist's resale right

Definition

The artist's resale right is a legal provision that grants artists the right to receive a percentage of the sale price whenever their artwork is resold. This right ensures that artists benefit financially from the increasing value of their work over time, acknowledging their ongoing contribution to the art market. It is an important mechanism for supporting artists economically, particularly in a system where they often rely on initial sales for income.

5 Must Know Facts For Your Next Test

1. The artist's resale right was established in various jurisdictions, most notably in the European Union through Directive 2001/84/EC.
2. The percentage typically awarded to artists from resale ranges from 2% to 7%, depending on the sale price and local laws.
3. This right is often limited to certain types of artworks, such as paintings, sculptures, and other unique pieces, and may not apply to prints or mass-produced works.
4. Resale rights are enforceable primarily through auction houses and galleries, which are responsible for paying artists their share upon a resale transaction.
5. Some countries have specific thresholds below which resale rights do not apply, meaning smaller sales may not trigger payment obligations.

Review Questions

• How does the artist's resale right contribute to an artist's financial stability in the art market?
  • The artist's resale right contributes to an artist's financial stability by allowing them to earn a percentage of future sales of their work. This means that as their art gains value over time, they benefit directly from that increase rather than relying solely on initial sales. This ongoing financial support is crucial for many artists, enabling them to invest in their careers and sustain their creative endeavors.
• Discuss the implications of the artist's resale right on galleries and auction houses involved in the sale of artwork.
  • The artist's resale right imposes obligations on galleries and auction houses to calculate and distribute royalties to artists whenever a piece is resold. This can affect pricing strategies and commission structures since these institutions must factor in additional costs associated with complying with resale rights. The requirement also encourages galleries and auction houses to maintain transparent records of sales, which can enhance overall trust within the art market.
• Evaluate the effectiveness of the artist's resale right in promoting fair compensation for artists in comparison to traditional royalty systems.
  • The effectiveness of the artist's resale right in promoting fair compensation for artists is significant when compared to traditional royalty systems that often apply to music or publishing. Unlike these systems that may involve complex licensing agreements, resale rights provide direct financial benefits linked to actual market transactions of art. However, challenges remain in enforcement and awareness among buyers, potentially limiting its impact. Overall, while it helps recognize the ongoing value of an artist's work, the practical application can vary widely based on local laws and market conditions.

Related terms

Royalties: Payments made to an artist or creator for the ongoing use of their work, usually calculated as a percentage of sales.

Copyright: A legal right that grants the creator of original works exclusive rights to their use and distribution, typically for a limited time.

Art Market: The economic sector involving the buying and selling of artworks, where prices can fluctuate based on demand, rarity, and artist reputation.