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Droit de Suite (Resale Right) European Directive

EC ARTISTS’ RESALE RIGHTS (ARR)/ EC DROIT DE SUITE (DdS) DIRECTIVE

Act:   Directive 2001/84/EC, 27 September 2001
Date of entry into force:   13.10.02
Final date for implementation in the Member States:
01.01.2006
01.01.2010
The second date is for those Member States which do not apply the resale right on the entry into force date of the Directive in order to apply the resale right for the benefit of those entitled under the artist after his/her death (a period of two additional years is possible).

What is it?
The Artists’ Resale Right Directive (2001/84/EC) was due to be transposed into national law in the EU Members States before 1 January 2006. It requires the conception of a national law which ensures a right for artists in the visual and plastic arts to receive a percentage of the value of sales of original works of art subsequent to the first transfer of ownership of the work during their lifetimes and (for the artist’s successors) for seventy years after their deaths. In its 1996 proposal for a Directive to harmonise legislation across the European Union on the basis of a compulsory resale right for artists, the European Commission pointed to barriers in the internal market, distortions of competition, and a lack of protection for the authors of original works of visual and plastic art by reference to comparable protections available under copyright to artists in other fields (for example, the literary field) in respect of downstream or subsequent economic exploitation of their works. Many people, including some artists, question whether the proposed problem to be cured (namely, visual artists’ failing to receive adequate compensation for their creative efforts) is commensurate with the burden that would be placed on the buyers and the sellers of visual art, the very people who already provide the main support for artists. 

Following five years of negotiation, in which a number of Member States actively opposed the proposal as likely to divert art market sales outside the EU, or prove uneconomic to administer in the conditions of the art market in some Member States, a unanimous compromise was agreed in late 2001, with mandatory transposition deferred to January 2006.

A derogation was included, allowing Member States that had not legislated for the Artists’ Resale Right previously to defer implementation of the royalty in respect of works by artists no longer living, but within the 70 year extended term of the right until 2010, should they so choose.

As stipulated in the Directive, the Member States set a minimum sale price, a threshold, from which sales are subject to the resale right, but this price may not exceed €3,000. 
 
The royalty as stated in the directive* will be payable on a sliding scale:

4% < €50,000
3% from €50,000.01 to 200,000
1% from €200,000.01 to 350,000
0.5% from €350,000.01 to 500,000
0.25% >€ 500,000. (about $80,000) capped at €12,500 (around $20,000)
(* The Member States can adopt a sliding scale starting at 5%)

For more information
An official summary of the legislation (in 11 languages) and a link to the Artists’ Resale Right text (in 18 languages) can be found on :

http://ec.europa.eu/internal_market/copyright/resale-right/index_en.htm

More information regarding Droit de Suite can be obtained from the CINOA secretariat. For more specific information on the transposition by individual European Member States, please contact CINOA’s member trade associations which can be accessed via this website.