Category: Buyers & Sellers
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Who is liable to pay the resale royalty?
The following persons are jointly and severally liable to pay the 5% resale royalty to RRA (section 17, of the Act) :
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When is a resale royalty payable?
An eligible artist” (or their successor) has a right to be paid a resale royalty each time there is a “qualifying resale” of an “original visual artwork” by that artist (provided the resale right had not “expired” at the time of resale) Use the flowchart in the Criteria section of the Homepage to apply this […]
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RRA policy on non-compliance
If a liable person fails to pay a resale royalty, or fails to provide the required reporting information, or if any other requirement of the Act is not complied with, then the Act provides that the Collection Agency may apply to a court for orders enforcing these obligations, and for any other order that is appropriate […]
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How are voluntary qualifying resales enforced?
A “Voluntary Qualifying Resale” means that all parties to the resale agree in writing that the resale is a qualifying resale for purposes of the Act; and what % of the resale value they agree will be payable to the artist as a resale royalty; and who will provide the relevant information to the Collection Agency. […]
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How will the scheme work for galleries who often buy at auction to re-sell? Will the royalty be payable twice?
A royalty is payable on each resale. Who is liable in each instance is answered by section 17 of the Act. The seller is always liable, and generally their agent will be jointly and severally liable. Generally a buyer won’t be liable unless no agent is involved. To give two contrasting examples: Where […]
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How does it work when an art consultant facilitates a resale between two private parties?
The resale is considered a professional resale because an art market professional is involved. That means, provided it meets the standard criteria, it will be a qualifying resale.
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How is the resale value calculated?
The resale royalty payable is calculated at 5% of the “resale value” of the qualifying resale (section 16). Section 10 says that “resale value” means: “the value of the consideration given for the visual artwork under the contract for resale” which may include: ‘Resale value’ does not include:
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How does Section 7(3) of the Act relate to “commissioned” artwork?
Section 7(3) of the Act states “An artist has a right under this section irrespective of whether they are or were the first owner of copyright in the artwork.” This means that if the artwork was “commissioned” (as per Section 21(3) of the Copyright Act), then the artist who created the artwork is not the […]
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Who calculates resale value in a “voluntary qualifying resale”?
Section 9(3) of the Act states that in order for a resale to be a “voluntary qualifying resale” all the parties to the resale agree in writing that the resale is a voluntary qualifying resale, and what percentage of the resale value will be payable as the ARR, which in effect means both the buyer […]
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What are the requirements to report all secondary purchases to RRA, or only those that are a Qualifying Resale under the Act?
You are only required to report a Qualifying resale as defined in the Act. The scheme will operate on good faith and the belief that you are better qualified to determine whether a purchased item is a qualifying resale or not, and we will not be investigating your decisions unless independently alerted