UK Extends Derogation On Resale Right Of Artists

by Robin Pilgrim, LawAndTax-News.com, London

27 October 2009

The UK government has introduced into parliament the legislative instrument that will maintain its existing derogation from resale right for the works of deceased artists for a further two years.

The resale right entitles authors of original works of art, such as paintings, engravings, sculpture and ceramics, to receive a royalty each time one of their works is resold in a sale involving an art market professional.

However, government ministers have decided that the current economic climate would accentuate the difficulty the art market would face when coping with the application of resale right to the works of deceased artists.

The decision to extend the derogation comes after consultation with, among others, artists and traders, and comes into effect on December 1, 2009.

The extension to the derogation means that in the UK, resale right will only apply to works by living artists until January 1, 2012.

The resale right for artists came into force in the UK on February 14, 2006 and was brought in to implement a European directive. The right only applies to sales for EUR1,000 (GBP911) or more and is calculated on a sliding scale.

The maximum royalty payable on any single sale is EUR12,500. The royalty is subject to compulsory collective management, so artists cannot claim their royalty independently but must receive it through a collecting society.

A derogation to resale right for works by deceased artists was available to countries that did not have resale right when the European directive entered into force. It could only be used until January 2010 with an extension until January 2012 provided certain procedures were followed.

The UK applied the derogation and therefore the resale right for artists only applies to works created by artists who are still living.

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