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Update on the Reform of the Artist’ Resale Right

30/01/2023

When one of their works is resold by an art market professional, authors of original works of art and original manuscripts, as well as their successors in title, benefit from an inalienable economic right to share in the proceeds of the resale, known as the « Artist’ Resale Rright ». This participation, which takes form of a flat-rate remuneration, enables the artists and their successors in title to share with the sellers the economic profit that the latter derive from the increase in value of their works.

Artist’ resale rights have been regulated in Monaco since 1975 via two statutes, Sovereign Order n°5.501 of 9 January 1975 which made the Bern Convention of 9 September 1886 for the protection of literary and artistic works enforceable in Monaco and Bill n°491 of 24 November 1948 on the protection of literary and artistic works.

In order to accompany the recent development of the Monegasque Art Market and to promote its attractiveness, Bill n° 1.526 adopted on 1st July 2022 updated the rules previously applicable to the artist’ resale right.

This text broadens the scope of works previously covered (plastic, artistic, literary, scientific, audiovisual or digital works) to include works created by the artist themself or under their responsibility in limited quantities, such as bronzes, signed photographs or original manuscripts of writers and composers.

It introduces resale right exemptions, one for the benefit of the seller who has acquired the work directly from the author and resells the acquired work within a maximum period of three years. The second exemption is for the benefit of works sold at a lower price than the amount to be set by Sovereign Order.

The new law further reforms the modalities of remuneration of artists who previously benefited from a flat-rate remuneration fixed at 3% of the price of any resale of their creation, on condition that it takes place in the form of an auction sale carried out on Monegasque territory (article 11 of Bill n°491 of 24 November 1948). From now on, the scope of the artist’ resale right is extended to all art market professionals, so that art professionals acting as seller, buyer or intermediary are concerned. The amount of the artist’ resale right is subjected to a ceiling of 12,000 € and the flat-rate retrocession is replaced by the implementation of a degressive rate per price bracket as follows in line with regulations applicable in most European countries :

  • First bracket: 3% for works with a sale price of €50,000
  • Second bracket: 2% for works with a sale price between €50,000.1 and €200,000
  • Third bracket: 0.5% for works with a sale price between €200,000.1 and €350,000
  • Fourth bracket: 0.25% for works with a sale price between € 350,000.1 and € 500,000
  • Fifth bracket: 0.15% for works with a sale price of over €500,000

The duration of the protection of the resale right on behalf of post-mortem artists has been increased from fifty to seventy years, thus standardising the Monegasque duration of protection with the duration of protection in force in the European Union (Directive n°2001/84/CE known as the "artist resale right directive" of 27 September 2001).

Artists will now be able to transfer their resale right for payment or free of charge, by will or bequest within the limits of the respect of the reserved portion awarded by law to their heirs, thus allowing artists to dispose of this economic right within the framework of their estate planning.

Foreign authors will also be able to benefit from the protection of the artist resale right under certain conditions, namely, if an identical benefit is granted by their State of origin to Monegasque artists, and also if they are resident in Monaco and have participated in Monegasque artistic life for more than five years.

In conclusion, this successful overhaul of the field of application as well as of the modalities of the artist’ resale right is in line with a dual desire to provide better protection for artists, while developing the attractiveness of the Monegasque Art Market on a local and international level.

Authors

Portrait ofGéraldine Gazo
Géraldine Gazo
Partner
Monaco
Portrait ofSandra Landais
Sandra Landais
Senior Associate
Monaco