Major auction houses are voicing opposition to a new bill called the American Royalties Too Act, which would grant visual artists (or their estates) a portion of the profits when their work is resold at public auction. The bill was introduced last month in the House by Representative Jerrold Nadler, a Democrat from New York, and in the Senate by Democrats Edward J. Markey of Massachusetts and Tammy Baldwin of Wisconsin.
In December 2013, the United States Copyright Office re-examined its policy concerning visual artists and resale royalties. Last time the issue was explored, which was in 1992, the Office decided that artists should not receive a share of the profits when their works are resold. However, after more than a decade, the Copyright Office reversed its decision and stated that resale royalties should be awarded to visual artists, including painters, illustrators, sculptors, and photographers.
Lawyers for Sotheby’s visited lawmakers on Capitol Hill this month, asking Congress to shoot down the bill. They are joined in the fight by Christie’s, who have hired David Israelite, a royalty battle veteran and the CEO of the National Music Publishers’ Association. The auction houses consider the bill an added cost that will increase the price of doing business, which could lead to more sellers making deals through private transactions rather than public auctions. They are also arguing that the royalties would solely benefit the most successful artists and estates as they are the ones whose work is most often sold in the secondary market. Galleries and dealers are not included in the proposed bill.
Representative Robert W. Goodlatte, a Republican from Virginia and the chairman of the Judiciary Committee, will decide whether to schedule hearings on the bill.
According to a report released on December 13 by the United States Copyright Office, in the past two decades, over 70 countries have changed their policies concerning resale royalties to better serve visual artists.
