Photo by Steve Johnson on Unsplash
The launch of The Resale Royalty for Visual Artists Act, 2023, in Aotearoa New Zealand on 1 December 2024, marked a historic day for New Zealand artists and their successors. New Zealand now joins a global community of over 106 countries, including over 30 OECD countries, who have Resale Royalty Schemes in place. Importantly, the legislation gives eligible artists the right to receive a royalty when there is a qualifying resale of their original artwork.
The Artist Resale Royalty scheme is part of New Zealand’s commitment under the Free Trade Agreements with United Kingdom, European Union, Australia and other reciprocal countries.
A free trade agreement, simply put, is a legally binding set of rules for how countries conduct business and further acts as a protection for the importing and exporting of goods, services and/or investments. Each country has their own unique legislation regarding Artist Resale Royalties…
“The Scheme is reciprocal between New Zealand and other countries with an artist resale royalty scheme. This means that artists in each country are treated as rights holders under the other country’s royalty scheme, and the collection agency or agencies in each country will collect royalties on behalf of artists in the other.” (Ministry for Culture & Heritage website, 2024)
Through these reciprocal agreements, New Zealand artists and their successors can now receive royalties from the resale of their works in New Zealand, the United Kingdom (NZ-UK FTA), Australia, and countries in the European Economic Area (NZ-EU FTA). Likewise, artists and successors from reciprocating countries, so far, the UK and Australia are eligible to receive royalties from resales that take place in New Zealand. New Zealand is likely to enter into more reciprocal agreements in the future. Discussions are already underway with The Netherlands and France.
Cultural Minister Todd McClay says, “The Resale Royalties Scheme brings New Zealand in line with global standards to ensure artists are fairly compensated when their work is resold. It means New Zealand art sold here and overseas will return a payment to our artists. It strengthens our commitment to fair trade practices made in our agreements with the UK and EU. And importantly, it enhances the reputation of New Zealand’s creative sector and promotes the value of our cultural exports”.
The formal recognition of reciprocity between these countries and organisations represents a positive and collaborative global effort to ensure artists and their successors benefit from the growing value of their artworks across borders. The Scheme further aligns New Zealand with the ever-expanding international league who have incorporated Resale Royalty Schemes into legislation.
When working with UK artists, Resale Royalties Aotearoa will work closely with Design and Artists Copyright Society (DACS). DACS is a not-for-profit organisation dedicated to championing, protecting and managing the rights of artists, and maximising their royalties.
“The introduction of the Artist’s Resale Right in New Zealand and the reciprocal recognition of the right marks a significant milestone, building on our successful partnerships within the European Economic Area and with Australia. It is confirmation that the need to ensure fair compensation for artists is being recognised globally. As the leading organisation distributing ARR in the UK, we take pride in the UK’s role in championing these rights. By collaborating with art market professionals and sister societies worldwide, ARR is making a significant difference for artists and their beneficiaries.” – Christian Zimmermann, Chief Executive of DACS.
We will also be working with Australian artists though the Copyright Agency. A similar scheme has been operating there since 2010 has generated $15 million in royalties and benefitted almost 3000 artists from the 33,000 eligible resales. Around 65 percent of artists benefitting from the scheme identify as First Nations (Arts.gov.au, 2024).
The scheme will ensure New Zealand art remains a valuable export, and the royalty payments will also support the livelihood of our local artists here in Aotearoa and those currently living overseas.
For countries we have reciprocal agreements with, this is just the beginning as we finally come into line with international practice. This exciting step means we are now part of the continued growth of a vibrant global art community.
Resale Royalties Aotearoa Toi Huarau (RRA) looks forward to facilitating the Resale Royalties Scheme and supporting Art Market Professionals with this transition. For further queries regarding reciprocal agreements, visit the Resale Royalties Aotearoa contact form.