California Resale Royalty Act

Definition

The California Resale Royalty Act is a law that entitles artists to receive a percentage of the sale price when their artworks are resold. This act aims to support artists financially by ensuring they benefit from the appreciation of their works in the resale market, which often does not involve the original creator.

5 Must Know Facts For Your Next Test

1. The California Resale Royalty Act was enacted in 1976, allowing artists to earn a 5% royalty on the resale price of their artworks.
2. This act applies specifically to original works of art, including paintings, sculptures, and photographs, but excludes prints and multiples unless they are signed by the artist.
3. The royalty is payable by art dealers or auction houses when a work sells for over $1,000, ensuring that only significant transactions trigger this obligation.
4. The act has faced challenges in court regarding its constitutionality, particularly concerning the potential infringement on free speech and commerce rights.
5. The resale royalty is intended to help artists sustain a living and is part of a broader movement to improve the economic conditions for artists within the art market.

Review Questions

• How does the California Resale Royalty Act empower artists in relation to the resale market?
  • The California Resale Royalty Act empowers artists by ensuring they receive a 5% royalty on the sale price whenever their artwork is resold. This means that artists can benefit financially from increases in the value of their work over time, which is especially important as art can significantly appreciate after its initial sale. By linking artists directly to the financial success of their creations in the resale market, it helps secure a more stable income for creators.
• Discuss how the California Resale Royalty Act interacts with existing copyright laws and what implications this has for artists.
  • The California Resale Royalty Act complements existing copyright laws by providing an additional income stream specifically tied to the resale of artworks. While copyright gives artists control over reproduction and distribution of their works, it does not provide any financial benefit from subsequent sales. The resale royalty adds a layer of financial security, allowing artists to gain from future sales without losing control over their original rights. This interaction highlights how different legal frameworks can work together to protect and promote artists’ interests.
• Evaluate the potential impacts of the California Resale Royalty Act on the broader art market and artist community.
  • The California Resale Royalty Act could significantly influence the broader art market by encouraging a more equitable distribution of wealth within the industry. As artists receive a percentage from resales, it may incentivize buyers to support living artists rather than only investing in deceased ones, fostering a culture that values contemporary creation. Additionally, this act could inspire similar legislation in other states or countries, leading to a larger movement advocating for artist rights and fair compensation across various art markets globally.

Related terms

Royalty: A payment made to an artist or creator based on sales or usage of their work, providing ongoing income from the exploitation of their intellectual property.

Copyright:

A legal right that grants the creator of original works exclusive rights to their use and distribution, usually for a limited time, with the intention of enabling creators to receive compensation for their intellectual investment.

Visual Artists Rights Act (VARA): A federal law that protects the rights of visual artists in the United States, allowing them to claim authorship and prevent destruction or alteration of their works.