National Association for the Visual Arts

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the US where the imposts imposed by sellers are higher than those inAustralia. It is also the case that the statistics indicate that the market formost Australian work is in Australia.6. What are the most important principles underpinning thechoice of model or the form of resale royalty arrangement?(eg. a scheme that provides royalty payments to the greatestnumber of living artists, or limits the impost on smallbusiness, or excludes works that decrease in value, etc).The prevailing principle is one of the right of any artist to earn a royaltyeach time any of his or her artworks is resold. As a matter of practicalityNAVA accepts that at present it will only be possible for this right to beexercised for sales made through "public" intermediaries like auctionhouses, commercial galleries and agents/dealers. NAVA also accepts thatthe administration costs need to balance collection and distribution costsand this may result in the application of a threshold below whichdistributions may not be made. The funds collected below this limit couldbe dealt with in one of two ways. Either they could be accumulated overtime until they reach a certain minimum and then be distributed, or couldbe pooled and after six years applied for a closely related purpose like anartists' superannuation scheme or benevolent fund.A royalty scheme which provides the highest viable payment to thegreatest number of living artists and their heirs at the lowestadministrative cost is the most desirable, but NAVA recognises that thishas to be tempered by the need not to endanger the market for art byimposing too high a percentage of royalty. The scheme proposed bothhere and in NAVA’s previous joint submission with Arts Law, theAustralian Copyright Council and Viscopy is regarded as balancing thebest value for artists against a projection of what is realistic in terms ofthe art market and the businesses on which it relies.In relation to the impact on small businesses, NAVA would propose thatthe government should take steps to assist both with the costs ofestablishment of the appropriate implementation systems and with aneducation campaign to alert all parties to their rights and obligations.Most small businesses now use computers, electronic databases andbanking systems which could be extended to encompass this function fora relatively modest cost. As Viscopy has pointed out, the majoradministration burden will be shouldered by the collecting society and it
will be artists who pay through the imposition of the collection society'sadministration levy.NAVA does not support the idea of a scheme that applies only to resaleswhere there is a profit.7. What works should be covered by the arrangement andwhy?As mentioned in 4 above, the works to which the right should applyshould be all Australian artistic works which are resold in Australia (withthe exclusion of buildings and models of buildings) or overseas incountries with comparable schemes. The resale royalty should also applyto all artistic works sold in Australia made by artists from overseas ,where the artist's country of origin has a comparable scheme.NAVA would also propose that works gifted or bequeathed to publicgalleries should have the same level of royalty paid to the artist.The current definition in the Copyright Act of "artistic work" has notkept pace with practice. It would be logical and a good opportunity forthis definition now to be revised to encompass current forms of practice,including installations and various forms of new media work. The needfor a revision of the definition was recognised in recommendation 3.8 ofthe Myer Inquiry report.In relation to the comments made by the DCITA paper about thedifference between “tourist art” and “fine art”, NAVA would propose thatthere should be no distinction as far as resale royalty payment isconcerned, as long as the work was not simply a manufactured product.The principle of multiples as in limited edition prints, photographs andcraft works should still be recognised.8. What duration should apply and why?The most commonly adopted period in overseas models is that tied tocopyright. In Australia this would mean the life of the artist plus 50 years,or 70 years when the terms of copyright duration are changed accordingthe Australia US Free Trade Agreement. NAVA would support thisduration in harmonization with the European Union. The logic is that thisis one of the few forms of inheritance which an artist can leave his or herheirs.
Page 1 and 2: RESALE ROYALTY SUBMISSIONThe Nation
Page 3 and 4: Recognition of professional statusA
Page 5 and 6: not the least because it is discrim
Page 7: In addition, written contracts are
Page 11 and 12: If a statement about threshold had
Page 13: auction house buyer and seller impo

National Association for the Visual Arts

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