Category: General
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What is a “Resale” and how does this apply to gifted or inherited artworks?
Resale means any sale after the first transfer of ownership (whether for consideration or not). The scheme therefore applies to all sales after the first transfer of ownership. How does this apply to sales of gifted or inherited artworks? Explained in the context of a sale of gifted and/or inherited artwork, that means: For a visual […]
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How do I update my details?
To update personal information and contact details, you can log into the RRA portal and make changes. To update declarations or any other information, please email us at kiaora@resaleroyalties.co.nz
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How much is the resale royalty payment?
The amount is the same for both eligible artists and successors, a 5% royalty will be collected for eligible artists each time there is a qualifying resale of their original visual artwork. The collection and distribution of the payment is managed by RRA, a not-for-profit. RRA will retain 20% for the purpose of funding RRA operations […]
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What is an “original visual artwork”?
Checklist 2.1: If any of the following boxes are checked, the work is a “visual artwork”: However, visual artwork does not include: * (These terms are defined in s 2(1) of the Copyright Act 1993) Checklist 2.2: To be an “original”, the visual artwork must have been:
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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 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: Plain English Guidelines In plain English, this […]