In the dynamic world of art, where creativity meets commerce, a recent amendment to Nigeria’s Copyright Act has introduced a new layer of complexity and excitement: artist resale rights. This provision has sparked a mixed bag of emotions among collectors and artists, generating conversations that could reshape the art market landscape.
Resale rights, often referred to as droit de suite, grant artists a share of the proceeds each time their work is resold in the market at auctions or via a dealer. Under Section 17 of Nigeria’s Copyright Act 2022, artists are entitled to receive a percentage of the resale price whenever their original artworks are sold through public auctions or dealers. This right acknowledges the ongoing value that an artist’s work contributes to the market, long after the initial sale. The Act provides that;
17(1) Notwithstanding any assignment or sale of the original work, an author of an artistic work, manuscript of a literary work or a musical composition, shall have an inalienable right to a share in the proceeds of any sale of that work or manuscript, by public auction or through a dealer, subsequent to the first transfer by the author.
(2) The right conferred by this section shall apply only to originals of such work.
(3) The condition for the exercise of the right conferred by this section shall be determined by regulations made by the commission.
(4) The provisions of this section shall not apply to architectural works or works of applied art.
(5) In this section, author includes heirs and successors – in – title.
It’s important that one takes into consideration the exception to the rule mentioned in sub-paragraph 4, as it relates to works of applied art. Applied art refers to the application of design and aesthetics to everyday objects to make them aesthetically pleasing and functional. Unlike fine art, which is created primarily for its aesthetic value, applied art combines artistic skills with practical utility. This field encompasses a wide range of creative disciplines, including graphic design, industrial design, interior design, fashion design, and decorative arts such as ceramics, furniture design, and jewellery.
Collectors’ Perspective: A Paradigm Shift
Collectors, who traditionally see themselves as the primary beneficiaries of an artwork’s appreciation in value, may find this new mandate somewhat unsettling. The idea of sharing profits with the artist upon resale could be perceived as a potential reduction in their investment returns. For many collectors, the initial purchase price represents a full transfer of ownership rights, including the potential for future financial gains.
This paradigm shift requires collectors to rethink their investment strategies. Some worry about the administrative burden of tracking and managing resale royalties, while others fear a possible impact on the art market’s fluidity. For galleries and auction houses, implementing these rights involves additional regulatory compliance and transparent financial practices, which may further complicate transactions.
Artists’ Perspective: A Long-Overdue Triumph
For artists, resale rights are a significant victory, representing long-overdue recognition of their ongoing contribution to the value of their work. Many artists, especially emerging ones, often see their creations appreciate in value without reaping the financial benefits of this growth. Resale rights ensure that artists continue to share in the economic success of their work, providing a sustainable income stream and financial security.
This development is particularly exciting for artists who have long felt marginalized by the commercial aspects of the art market. It aligns with the broader movement towards fair compensation and artists’ rights, reinforcing the notion that creators should benefit from the economic lifecycle of their creations.
In 2011, New York painter Chuck Close, L.A. artist Laddie John Dill and the estate of L.A. sculptor Robert Graham were joint Plaintiffs in a class–action suit against the New York operations of Sotheby’s and Christie’s, alleging that the auction houses violated the California Resale Royalty Act which granted artists 5% of resale rights. Also, two British organisations that represent artists and their estates launched a legal action against the multi-millionaire art dealer and collector Ivor Braka and his company, Ivor Braka Ltd, in a bid to uncover whether he owes unpaid royalties dating back to 2006 when the Artist Resale Rights was first introduced in the UK.
The Artists’ Collecting Society (ACS) and the Design and Artists Copyright Society (DACS)—the two non-profit bodies responsible for collecting Artist’s Resale Right royalties—say they have repeatedly asked Braka to disclose information on sales on which royalties are due. According to those organisations, Braka had refused to respond, potentially breaching his legal obligation to provide details of secondary market transactions.
While the introduction of resale rights may initially stir up some resistance among collectors, it also presents an opportunity for a more equitable and transparent art market. Artists and collectors are not adversaries; rather, they are essential stakeholders in a vibrant cultural ecosystem.
For successful implementation, collaboration between artists, collectors, galleries, and regulatory bodies is crucial. Clear guidelines, effective communication, and mutual respect will be key to navigating this transition smoothly. Collectors can take pride in supporting artists’ livelihoods, while artists can continue to create with the assurance of receiving fair compensation for their enduring contributions.
In conclusion, the introduction of artist resale rights under Nigeria’s Copyright Act 2022 is a game-changer. While it may present challenges for collectors, it is a cause for celebration among artists, heralding a new era of fairness and recognition in the art market. As the industry adapts, this provision has the potential to foster a more balanced and thriving art community.