The Artist’s Resale Rights Bill 2006 (Cth) is expected to be introduced soon into Parliament. The Bill seeks to grant artists a share of the resale price each time their work is resold. Resale royalties seek to reward artists as the value of their work increases, which usually occurs after the initial sale by the artist.
The Bill, if passed, would amend the Copyright Act 1968 (Cth) and provides for royalties to be paid on all 'graphic or plastic art' which includes sculptures, glassware and photographs.
Under the Bill, the royalty is calculated by means of a sliding scale and ranges from 4 per cent of the sale price for works under $100,000 to 0.25 per cent for works over $1 million. The royalty will be payable only on sales subsequent to the first sale and the total royalties payable on any sale will not exceed $25,000. No royalty is payable on sales less than $2,000 or if the seller acquired the work from the author less than three years before the sale and the sale price is less than $20,000.
The right to royalties will subsist for the term of copyright, which is the life of the author plus 70 years for most works.
Some other key provisions of the bill include:
the right to royalties cannot be assigned (except as part of an estate or in limited circumstances) or waived
the royalty will be collected by a collecting society
10 per cent of the royalties on re-sales over $50,000 is to be paid to a fund to support new and emerging artists.
A re-sale royalty has been on the political agenda for a number of years and was the subject of a government issues paper in 2002. An EU Directive in respect of a resale royalty (droit de suite) came into force on 13 October 2001 and is law now in most European countries.
The Bill will be welcomed by artists, however, a number of groups have expressed reservations about the effect of a resale royalty on the Australian art market in the past.
Mr Bob McMullan MP is scheduled to introduce the Bill into parliament on 27 March 2006.
The content of this article is intended to provide a general guide
to the subject matter. Specialist advice should be sought about your
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
IP is the legal property in the innovation in your business and it is that which drives your revenue and profit growth.
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).