Category: General
-
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.
-
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 means that the “Resale Value”…
-
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 first owner of the copyright,…
-
What is the duration of the resale right period and will this change with the Copyright Act review?
Section 15 of the Act states that the duration of the ARR right is 50 years from the end of the calendar year that the (eligible) artist dies, (or if 2 or more artists create the qualifying artwork, then 50 years from the end of the calendar year that the last surviving artist dies). This is the same duration as…
-
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
-
How do you define ‘limited number of copies’?
The Act does not define what a limited number of copies is, although there is provision in the Copyright Act that a 3 Dimensional artwork that has fewer than 50 copies produced is copyright protectable, so this might be a useful benchmark. We suggest using good faith best efforts to do your due diligence in researching, and keep a record…
-
Would the term to receive a resale royalty for a UK or Australian artist’s work that is a qualifying resale in New Zealand due to our reciprocal agreements be New Zealand’s term of 50 years, or their longer term of 70 years?
We are applying New Zealand’s legislation but it’s our understanding that this will change in the next few years when the NZ Copyright Act is reviewed.
-
Has there been any consideration regarding the extension of copyright duration that will be enacted sometime in the next four years?
Currently the artist resale royalty will apply for 50 years after the death of the artist which aligns with New Zealand’s current Copyright Act. However our understanding is that the Copyright term will be extended prior 1 May 2028, and we would expect that the ARR term will then also be extended to align with the Copyright Act.