Copyright Office Seeks Public Comment on Resale Royalty Rights for Visual Artists | Practical Law

Copyright Office Seeks Public Comment on Resale Royalty Rights for Visual Artists | Practical Law

The US Copyright Office has made a request for public comment on the topic of resale royalty rights for visual artists. The Copyright Office specifically seeks comments on the means by which visual artists exploit their works under current law and the possible issues when considering a federal resale royalty right in the US.

Copyright Office Seeks Public Comment on Resale Royalty Rights for Visual Artists

Practical Law Legal Update 1-521-4627 (Approx. 3 pages)

Copyright Office Seeks Public Comment on Resale Royalty Rights for Visual Artists

by PLC Intellectual Property & Technology
Published on 19 Sep 2012USA (National/Federal)
The US Copyright Office has made a request for public comment on the topic of resale royalty rights for visual artists. The Copyright Office specifically seeks comments on the means by which visual artists exploit their works under current law and the possible issues when considering a federal resale royalty right in the US.
The US Copyright Office published a notice of inquiry on September 19, 2012 requesting public comments as to the feasibility and implications of legislation on a federal resale royalty rights for visual artists, which in Europe is called droit de suite.
Artists in the US currently enjoy limited rights of attribution and integrity under the Visual Artists Rights Act of 1990 (17 USC § 106A (2011)). However, the Copyright Act does not generally permit artists to control post-sale uses of original visual works. Instead, under the first sale doctrine, the acquirer of a visual work generally has the right to display, sell or dispose of the original work without the artist's permission.
However, as the Copyright Office notes, more than 60 countries, including each EU member state, now have resale royalty legislation. In addition, California enacted the California Resale Royalty Act in 1976, which applies to fine art sold in California, where the artists is a US citizen or California resident for more than two years (Cal Civ. Code § 986 (2011)). The California law was recently held to be unconstitutional by a federal district court in California and an appeal is currently pending before the US Court of Appeals for the Ninth Circuit.
The Copyright Office study will assess how a federal resale royalty right for visual artists would affect current and future practices of people involved in creating, licensing, selling, exhibiting, disseminating and preserving works of visual art. The notice also specifically asks for comments on:
  • The ways in which visual artists exploit their works under existing law and in the art marketplace.
  • The scope and applicability of a royalty.
  • Contractual considerations, including whether an artist or his heir should be allowed to waive the right.
  • The duration of the royalty term. including whether it should mirror the copyright term.
  • The royalty rate and how to calculate and administer the royalty.
  • Problems that visual artists may encounter if a federal resale royalty right is enacted.
  • Alternatives to a resale royalty.
Comments are due November 5, 2012 and should be submitted through the Copyright Office's website.