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Arts & Communication Blockchain and royalties in China’s art market

2012 was a significant step toward aligning with global In doing so, the paper provides a comprehensive
practices by proposing the concept of droit de suite within analysis, integrating theoretical frameworks with practical
4
its legal framework. This provision was intended to ensure insights, to delineate a path forward for China’s art sector.
that artists or their heirs could share the benefits from It argues for the need for nuanced policy reform and
the resale of original manuscripts or artworks, reflecting market adaptation to fully harness the capabilities of
a growing acknowledgment of the changing paradigms of blockchain technology, thereby advocating for a more just
art commerce. 5 and balanced economic model for artists within the global
art ecosystem.
The advent of blockchain technology presents an
innovative solution to the long-standing issues of 2. Resale royalties: Background and global
asymmetry and lack of transparency in art transactions. practices
Blockchain’s immutable ledger offers a transparent, secure,
and verifiable system for tracking the provenance and This section delves into the intricate tapestry of the art
ownership of artworks, potentially revolutionizing the world’s resale royalty landscape, tracing its evolution from
enforcement of resale royalties. The technology’s promise early conceptualizations to its current global practices.
6
is particularly evident in the realm of digital art and non- This journey through the annals of art history and legal
fungible tokens (NFTs), where platforms, such as OpenSea frameworks not only illuminates the origins and growth
and Rarible empower artists to embed resale royalty terms of the artist’s resale right (ARR), known as droit de suite
directly into their digital works, automating the royalty but also reveals the varying degrees of its adoption and
distribution process and ensuring a continuous revenue impact across different jurisdictions. This section explores
stream from future sales. 7 the underlying motivations for the establishment of these
rights, focusing on the central role they play in balancing
Blockchain technology transcends mere authentication the economic scales for visual artists. It navigates through
of artwork, heralding a new era of equitable economic the different approaches and adaptations of droit de
distribution. By embedding resale royalty terms suite in key regions such as the US, the European Union
directly into digital artworks through NFTs, artists gain (EU), Australia, and China, providing a comprehensive
unprecedented control over their creations, ensuring they understanding of how these systems operate in different
receive a fair share of proceeds from future sales. The rise cultural and legal contexts. This exploration is critical
of NFTs has ushered in a new era of discussions centered to appreciating the complex interplay between artistic
on digital ownership and the financial rights of artists, creation, market forces, and legal protections that shape
illuminating how these blockchain-enabled assets bestow the contemporary art market.
unprecedented control and monetization opportunities
upon creators within the digital domain. 8 2.1. Introduction to resale royalties and early
developments
This paper seeks to elucidate the transformative potential
of blockchain technology in enforcing resale royalties The notion of the artist’s resale royalty, widely recognized
within the art market. It examines the global landscape as droit de suite, is a pivotal measure for safeguarding
of droit de suite, the legal and economic implications for the financial interests of visual artists in the art market’s
artists, and the pivotal role blockchain technology can secondary sales. This concept, deeply rooted in France’s
th
play in enhancing transparency and fairness in the art early 20 -century art scene, emerged from the stark
market. The analysis pivots to the unique dynamics within disparities observed between the impoverished conditions
China, where the interplay between stringent regulation of artists and the subsequent escalation in the value of
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and a thriving digital innovation landscape sets the stage their artworks. This situation starkly contrasted with
for a nuanced exploration of blockchain in art commerce. that of novelists or musicians, who typically enjoy ongoing
China’s way of preserving traditional culture while financial benefits when their works are resold or reused. 11
embracing new technology provides an interesting case The French implementation of droit de suite in 1920
study. Projects like the “Digital Dunhuang Open Material was largely influenced by the glaring economic inequalities
Repository” show how blockchain can connect heritage faced by artists, epitomized by the experiences of Jean-
with new digital platforms, protecting culture items and François Millet, a pivotal figure in the realism and Barbizon
ensuring their prosperity in the digital age. Despite the art movements. Millet’s works often portrayed peasant
intricate challenges posed, these very hurdles also unveil farmers, and his painting L’Angelus, depicting two peasants
vast potential for groundbreaking innovations in art in prayer, originally sold for a mere 1000 francs in 1860.
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commerce, offering a fertile ground for digital pioneering. 9 However, by the end of the 19 century, the value of
th

Volume 3 Issue 1 (2025) 2 doi: 10.36922/ac.2875