INTELLECTUAL PROPERTY: COMMON POSITION ON ARTISTS' RESALE RIGHT.
The resale right allow authors of works of arts or their heirs to collect a percentage of the sales price obtained during any resale of a work subsequent to the first sale. Most Member States have a resale right but the laws tend to differ from each other, particularly in the case of the categories of works take, into account, the beneficiaries of the right, the rate applied, transactions subject to the right and the calculation method. Against this background, a decision to apply or not to apply this right is a factor helping to create an anti-competitive situation and encourage operators to make sales outside the Community. The disparities in the way the right is applied are detrimental to the smooth functioning of the internal market for works of art.The resale right is applied in Austria, Ireland, the Netherlands and the United Kingdom. It is on the statute books in Luxembourg, but the Grand Duchy has yet to adopt the measures needed to put it into practice.The draft Directive seeks to ensure that people who create works of arts (graphic or plastic )- enjoy some the fruits of the success of their creation. It also aims at restoring some sense of balance between the economic situation for authors of works of art and other types of creators (such as composers), who are able to continue making a profit from the exploitation of their works.The Directive leaves it up to the Member States to set the minimum sales price threshold above which sales are subject to the resale right. In any event, the minimum threshold may not be any higher than Euro 4,000. The Member States are entitle to ensure the right does not apply to resale instruments when the seller received the work directly from the author less than three years before the resale operation and the resale price does not exceed Euro 10,000.The resale right is set as follows:a) 4% for the first resale price bracket of Euro 50,000;b) 3% for the resale price bracket between 50,000.01 and 200,000;c) 1% for the resale price bracket between 200,000.01 and 350,000;d)0.5% for the resale price bracket between 350,000.01 and 500,000;e) 0.25% for the for the resale price bracket exceeding 500,000.Nonetheless, the total right involved should not exceed Euro 12,500.If the minimum resale right is below 4,000, the Member States shall also fix the rate applicable to the resale right bracket below 4,000. This rate cannot be lower the 4%. An optional exemption has been allowed to rally the support of countries extremely hostile to the proposal (the UK in particular, as it fears its art market might be relocated outside the EU): countries that do not recognise the resale right may, starting from the date when the Directive is supposed to be transposed into their laws (that is, no later than five years after its adoption), apply the resale right solely to living artists, for a ten-year period.
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|Comment:||INTELLECTUAL PROPERTY: COMMON POSITION ON ARTISTS' RESALE RIGHT.|
|Article Type:||Brief Article|
|Date:||Jun 28, 2000|
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