The Design and Artists Copyright Society (DACS) welcomed the Prime Minister’s endorsement of the new Resale Right Legislation for Artists introduced in the UK earlier this year.
DACS issued a call to businesses in London’s successful art trade world to work together to ensure that as many artists as possible benefit from the new Resale Right for Artists legislation, whilst working to ensure a healthy and thriving art market.
After some vacillation on the issue, the Government finally came down in favour of the resale legislation. Under the new regulations, every time an original artwork is resold by a gallery, auction house or art dealer for more than €1000, a modest royalty will be paid to the artist who created the artwork.
Toward the end of 2005, the committee met in Westminster, just 24 hours after Prime Minister Tony Blair reaffirmed the Government’s support for the new legislation. The new right secures for artists a long-term financial stake in their work, which typically increases in value long after the artist has sold it.
In the lead-up to the UK implementation of the Resale Right, the UK Patent Office held a consultation to gauge views on the new regulations, due to the significant impact it was predicted they would have on the professional art trade and living artists. And indeed as recent letters to the Times and other newspapers have indicated, the opinions of artists, the public and legislators have varied significantly in their responses to the new resale regulations.
Art world luminary, David Hockney and other high-profile artists wrote collectively and criticised the passing of the new resale regulations. Their letter to the Times on January 21st, 2006 expressed their dismay at the hindrances the new regulations would create for artists, dealers and collectors: “… Joanna Cave, of the Design and Artists Copyright Society… claims that the Government’s decision to widen the scope of the EU artists resale right directive by applying the resale levy to all works of art sold for a minimum of €1,000 (as opposed to €3,000 required by the directive) will balance the interests of the art trade and artists. As artists opposed to this directive, we disagree. The arrival of this levy will do little or nothing for the vast majority of British artists. It will undoubtedly envelop the market, on which we as artists depend, in red tape and it will discourage art dealers from buying particularly the work of emerging artists but also of most artists who have not achieved “celebrity” status. The Government’s recent decision to go beyond the requirements of the directive will only make matters worse.”
Abby Jackson, a twenty-three year old emerging artist, disagreed vehemently and responded as follows to Hockney’s letter; “I was one of the artists who delivered the petition for the resale right to No 10. At 23 I am not yet an established artist, but I am passionate about painting. A Bill like this will encourage young artists to keep going, even when they can’t afford a studio or a takeaway at the weekend. I don’t want money to go towards a lavish wedding, I need it to continue painting. Dealers make an absolute killing, so it doesn’t take a school-leaver to understand why Hockney and his out-of-touch protesters (letter, Jan 21) oppose the Bill.”
The overall European Directive was negotiated to ensure that living artists in all countries would enjoy the same basic resale rights. France and several other European countries already pay artists a percentage of the resale for the length of copyright protection – up to 70 years after the death of the artist under the “Droit de Suite” system.
Chief Executive of the UK Patent Office, Ron Marchant said; “The introduction of the UK…Resale Right brings the UK into line with Europe. Specific details such as the threshold of €1,000 for royalty payments and the derogation not to extend the rights to deceased artists until 2012, will strike a balance between the needs of artists, traders and buyers in the UK.”
By choosing to set the qualifying threshold significantly lower than the maximum level of €3,000, the Government has demonstrated its commitment to the widest possible range of artists, including photographers, illustrators and fine artists. The lower threshold also means that those artists on low incomes will benefit from the new law.
The Government has chosen to implement a system of compulsory collective management specifically set up for royalty collection. DACS is certainly pleased that the Government has recognised the important role that collecting societies play in managing the collection and distribution of artist royalties. DACS believes that their role will relieve artists of the burden of tracking sales of their work and will keep the administration costs down to a minimum for the established art trade. However, DACS has come under some fire from artists and the public: Some have accused DACS of self-interest and of having lobbied the Government to effectively set up a monopoly in the visual arts. DACS is currently the only collection society for the visual arts in the UK.
Andrew Potter, Chair of DACS commented, “…The main beneficiaries of the Artist’s Resale Right will be working artists, many of whom exist today on very small incomes or state benefits. The Government has clearly stated that responsibility for collecting the royalty lies with collecting societies. As we are the only organisation representing visual creators in the UK we will be providing that service. However, the legislation also provides for the existence of other collecting societies, should they emerge. This is not the creation of a monopoly. The Design and Artists Copyright Society’s commission rates for administering the resale right will not be higher (and may be lower) than what we currently charge: 25 per cent for UK monies and 10 per cent for overseas monies. In addition, the DACS-proposed system of collective management will relieve the art trade of the administrative burden, while ensuring that artists have the best chance to receive their royalties. Doing the right thing for artists is not incompatible with protecting this country’s flourishing art trade. The Government has got the balance right.”
Although the legislation will not benefit heirs of deceased artists until 2010, the Government has provided an option for artists to bequeath their resale royalties to registered charities. Allowing these organisations to receive a gift of resale royalty income illustrates another way in which the Artist’s Resale Right can help the arts and the community to benefit.
Joanna Cave, Chief Executive of the Design and Artists Copyright Society, said: “We are extremely pleased that this important new law will genuinely benefit artists. By opting for legislation that creates an opportunity for the widest range of artists to earn royalties from their artwork, including those that need the money the most, the Government has done the right thing for British artists whilst successfully striking a balance with the interests of the art trade.”
Ms Cave added, “The aim of the European Directive was to ensure artists are supported and the creative industries can thrive. From 2006, UK artists will benefit as many of their European counterparts have done for many years and will at last be entitled to similar rights to those enjoyed by other creators such as writers and composers.”
What is DACS?
DACS is a membership based organisation representing 36,000 fine artists and their heirs, in addition to 16,000 photographers, illustrators, craftspeople, cartoonists, architects, animators and designers, including some of the biggest names in contemporary visual arts.
Membership to DACS is open to all visual creators, their heirs and beneficiaries.
DACS pay artist royalties from primary licensing twice a year and calculate the annual Payback royalties. And as the organisation belongs to an international network of collecting societies in 27 countries, artists rights are administered on the same basis in all these countries and royalties are received when an artists work has been reproduced overseas.
DACS members are entitled to access the Copyright Advice service, to request information and advice regarding specific copyright questions.
DACS and the Resale Rights for Artists legislation:
The Artists Resale Right legislation finally came into force in January 2006. It pays a royalty each time an original work of art is sold on by a gallery, dealer or auction house. The Patent Office considered how best to implement the directive and decided that a royalty payment will be made to living UK and European artists on works which are sold at a value of €1,000 or more.
The royalty will be calculated as a percentage of the sale price, with a tapering scale starting at 4% for works valued to €50,000 and decreasing to 0.25% for the proportion of sale above €500,000.
The maximum payment on any sale is fixed at €12,500.
The UK Government will not extend the rights to deceased artists until 2010 with the possibility of a further extension to 2012.
All royalties will also be collected on behalf of artists by a collecting society to reduce the burden on business.
DACS has campaigned for a number of years to ensure that the way the Resale Right was introduced did not fall short of what British artists (many of whom survive on less than the minimum wage) needed.
In October 2005, 1000 artists, cartoonists, photographers and visual creators, led by Tracey Emin and Sir Peter Blake, supported the campaign to win a fair deal for struggling artists. In September a delegation of artists marched to Downing Street to present the Prime Minister with a petition in the form of a giant framed canvas urging him to ‘Do the Right Thing’ by British artists.
It is an interesting and timely shift in terms of the benefits and income protection that the new legislation brings to the UK’s living artists. Up until now, visual artists have been denied the basic rights that our authors, musicians and composers have long enjoyed. It may also provide an important balance between the activities of art collectors and traders and the rights of artists to benefit in the long-term from the appreciation ( both aesthetic and financial ) of their work.
For more information about DACS go to:
To view Patent Office press release:
www.patent.gov.uk/media/pressrelease/2005/1512.htm
To view the new Artists Resale Rights regulations:
www.patent.gov.uk/about/consultations/responses/resale/regulations.pdf
