UK INTELLECTUAL
PROPERTY OFFICE News Release issued by The Government News Network
on 2 April 2008
The UK
Intellectual Property Office today published the report it
commissioned into the impact on Artist's Resale Rights on the
UK art market. This report examines in detail both the costs and
benefits of the right for both the UK art market and its artists.
The right was introduced in 2006, as the result of a European
Directive. At the time there were concerns the new right would
increase costs for the art industry.
The report indicates that the right has not had a significant
impact on the art trade but there may be some difficulties with
the way the system is running. Indeed in the last year the art
market in the UK has flourished.
Minister for Intellectual Property Baroness Delyth Morgan said,
"This is an important piece of work and I am pleased to
publish its findings. I am pleased that the UK art market
continues to thrive. However, it is important that we do all we
can to ensure its continued success. UK-IPO will launch a
consultation in the Summer aimed at ensuring that we maintain a
system that allows the art market to succeed; this is beneficial
to both the trade and our artists who can only receive resale
royalty payments if there is a market selling their work."
The right currently applies to works created by artists who are
living. From 2010 the right will also apply to works created by
artists who have been dead for less than 70 years. The
consultation will look at the possibility of continuing to exclude
deceased artists until 2012.
The UK- IPO will host a launch event in the Summer to publish its
consultation paper and discuss the findings of the IPI report, as
well as reports produced by others in the resale right arena.
Editor notes:
* The report was commissioned by the IPO and carried out,
independently, by the IPI a copy can be viewed at: http://www.ipo.gov.uk/study-droitdesuite.pdf
* At this stage the right only applies to works created by
artists who are still living. From 2010 the right will also apply
to works created by artists who have been dead for less than 70
years. This would result in a significant number of additional
sales qualifying for payment.
* Artist's resale right came into force in the United
Kingdom (UK) on 14 February 2006. This right entitles authors of
original works of art (including for example paintings,
engravings, sculpture, ceramics) to a royalty each time one of
their works is resold in a sale involving an art market professional.
* The right only applies to sales for Euro 1,000 or more and is
calculated on a sliding scale (see below table). The maximum
royalty payable on any single sale is Euro 12,500.
Royalty for the portion of the resale price (in EURO)
4.00% Up to 50,000 3.00% Between 50,000.01 and 200,000
1.00% between 200,000.01 and 350,000
0.50% between 350,000.01 and 500,000 0.25% In excess of 500,000
* The royalty is subject to compulsory collective management so
artists cannot claim their royalty independently but must receive
it through a collecting society.
* In the UK the right only applies to sales of works by living
authors. However, after 2010 the right will be extended to cover
sales of works which are still in copyright; that is the author
has been dead for less than 70 years.