Artists Resale Right (ARR)

What is Artist’s Resale Right?

• Artist’s Resale Right (ARR) entitles artists and their beneficiaries to a royalty from the commercial resale of an original work of art when the sale price reaches or exceeds the sterling equivalent of  €1,000.
• The right lasts for the copyright period of the life of the creator and 70 years after the creator’s death.

Background

• Loose forms of the right have existed since the 1920s (allegedly after a public outcry over the fact that Jean François Millet’s wife lived in penury whilst his works were fetching extremely high prices) although it took until 2006 for ARR to be formally introduced in the UK.
• Before the introduction of the current legislation, artists rarely benefited from the increasing profits which were generated on the resale of their works. The EC Resale Right Directive and the UK Regulations on ARR (derived from the Directive) were implemented to rectify this situation and reward artists with a proportion of the resale price of their work.

How is ARR calculated?

• ARR is calculated in accordance with the EC Directive and the UK regulations on Artist’s Resale Right, using the following sliding scale:

• ACS has created a calculator to work out the exact amount of ARR due on any sale. To use this calculator click here.
• ARR is calculated on the resale price of the work, excluding buyers’ premium, Value Added Tax.
• Where sales are made in a currency other than Euros, the sale price is converted into Euros using the European Central Bank’s (ECB) exchange rate for the date of the sale.
• ACS downloads the ECB exchange rates every day so that anyone can calculate the exact amount of ARR due on any sale.
• The royalty is capped at a maximum of €12,500.

Which artists are eligible for ARR?

• All living nationals of countries within the European Economic Area (EEA). See list here.
• All living nationals of countries that enjoy ARR outside of the EEA. See list here.
• The UK Regulations provide that artists’ executors, trustees or beneficiaries* are able to claim ARR on eligible UK sales from 1st January 2012.
• Prior to 1st January 2012 executors, trustees or beneficiaries of an artist’s estate could claim ARR royalties on sales which occurred in European countries where ARR already apllied to sales of works by deceased artists for the full term of copyright (70 years ad=fter death.
• If you are the personal representative (executor/administrator) trustee or beneficiary of a deceased artist, please register here to start receiving ARR royalties on eligible sales outside the UK. 
• *The UK government secured an exemption – known as derogation – from the application of Artist’s Resale Right to sales of works by deceased artists. The exemption expired on 31st December 2011.

Which works of art are eligible for ARR?

• ARR applies to most works of art that are covered by artistic copyright.
• Tangible works of graphic or plastic art such as paintings, drawings, engravings, lithographs, photographs, collages, tapestries and some items of ceramic or glassware are all considered eligible.
• Copies of works of art are not eligible unless the copy is one of a limited number which has been created by the author or under his or her authority.

How is ARR administered?

• ARR is collected from Art Market Professionals (AMPs) by a collecting society and then distributed to the artist. The UK Regulations state that ARR must be administered by a collecting society.
• AMPs cannot nominate a collecting society – it is up to the artist to mandate the collecting society of their choice.
• Artists cannot be members of more than one collecting society.

ACS’s distribution process

•  As soon as an artist mandates ACS to collect his or her ARR royalties, we begin searching for all eligible sales of their work.

• ACS also sends a request for sales information to all AMPs every quarter. By law, AMPs have 90 days to respond to this request.
• ACS provides auction houses and dealers with a list of our mandated members to make it as simple as possible for them to check sales.
• Upon receiving or discovering sales information, we invoice the seller who has 30 days in which to pay the invoice.
• ACS pays member artists monthy at the end of the month in which we recieve payment from the seller.

Art sales outside the UK

• ACS keeps track of sales of member artists’ works in all countries in which ARR applies.
• Where possible, we collect directly from European sellers, bypassing foreign collecting societies and saving our artists from paying two commissions – the foreign collecting societies, and our own.
• For a list of foreign collecting societies who administer ARR outside the UK please see the Collecting Societies page.