UK Seeking Extension Of Artist Resale Right Derogation

by Robin Pilgrim, LawAndTax-News.com, London

30 December 2008

In a letter sent by the Secretary of State for Innovation, Universities and Skills, John Denham to EU Internal Market Commissioner Charlie McCreevy, it was announced that the UK intends to maintain its existing derogation from resale right for the works of deceased artists for a further two years.

The extension means that resale right will continue to apply in the UK to works by living artists only.

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, and a consultation was held on extending the derogation with a wide range of stakeholders, including artists and traders, according to the government.

Ministers decided, Denham revealed in his letter, that the current economic climate could adversely affect the art market’s ability to cope with the application of artist’s resale right to the works of deceased artists.

He explained that:

"We are committed to supporting businesses, including the UK art trade, through the current downturn. Applying resale right to deceased artists at this time would place a considerable burden on the art trade."

"If the art traders are seeing a reduction in business they will not only sell fewer works, but will not buy them from artists either. This will have a knock on effect for artists who will find that there is less of a market for their work."

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