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

paintings by Barbizon school artists, including Millet, had global adoption underscore the growing recognition of
soared. L’Angelus fetched a staggering 553,000 francs at an the need to equitably include visual artists in the financial
auction in 1889, a record-breaking sum at that time. This gains from their work.
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dramatic increase in the value of Millet’s work posthumously,
juxtaposed against the modest sums received during his 2.3. Current global practices
lifetime, underscored the financial disparities that artists 2.3.1. US
like him faced. It highlighted the urgent need for legislation In the US, the journey toward implementing resale
to ensure that artists or their estates could benefit from the royalty rights for artists has been complex and fraught
rising value of their artworks in the secondary market. The
French move to legislate droit de suite thus set a precedent, with challenges, reflecting the unique legal and cultural
paving the way for the rest of the world to recognize and landscape of the American art market. While the concept
value the economic rights of visual artists in the art market. of ARRs began gaining traction in the late 1960s, it was
This significant legislation marked the beginning of global met with varied responses and has since faced a series of
recognition of ARRs. 13 legal hurdles.
Early initiatives in the US to implement resale rights
2.2. Evolution and global adoption can be traced back to artists like Edward Kienholz, who,
Following France’s lead, countries such as Belgium in 1921 in 1969, developed a sales agreement requiring collectors
and Czechoslovakia in 1926 soon embraced similar legal to pay 15% of any resale proceeds to him, while the Art
frameworks, recognizing the growing need to protect Workers’ Coalition developed a similar concept, leading
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artists’ financial interests. The concept’s significance to the creation of “The Artist’s Reserved Rights Transfer
was further cemented at an international level when the and Sale Agreement” by Seth Siegelaub and Robert
Berne convention for the protection of literary and artistic Projansky in 1971, a pivotal document in the discourse on
works included droit de suite in its 1948 amendment. This artists’ legal and economic rights. 19
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amendment, championed by France, was a milestone in The California Resale Royalty Act (CRRA) of 1976
crafting an international legal framework to safeguard was the first and only legislative success in the US at the
artists’ rights. However, it did not obligate member state level. This act mandated a 5% royalty to be paid to
countries to implement droit de suite, instead allowing artists on certain resale transactions. However, the
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them the discretion to adopt this right. 14
act’s enforcement faced numerous challenges, including
Despite the amendment’s appeal, many countries evasion and resistance from art dealers, and it ultimately
initially hesitated to integrate it into their national laws. collected only modest amounts in royalties. The CRRA
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The post-1948 era witnessed a profound but varied impact was envisioned as a potential model for federal legislation,
of this amendment. Some countries, particularly within but this hope was dampened when significant portions of
the EU, readily embraced the concept, while others, such the Act were struck down as unconstitutional, clashing
as the US and Japan, showed reluctance. This led to the with federal copyright law. 22
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droit de suite’s application being optional and reciprocal
under the Berne Convention. Consequently, artists from At the federal level, various legislative attempts have
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non-adopting countries were unable to benefit from resale been made, but none have successfully established a
royalties available in nations that recognized this right. 3 nationwide artist resale royalty scheme. The Visual Artist
Residual Rights Act (VARA), introduced by congressman
By the early 2000s, over 80 countries globally, including Henry Waxman in 1978, marked the beginning of US
Mexico, the UUK, and India, had integrated droit de suite federal legislation. The VARA of 1990, while recognizing
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into their legal systems, demonstrating its increasing some moral rights of artists, did not include resale
international traction. However, discrepancies in royalties. The introduction of the American Royalties
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implementation and acceptance persisted across different Too Act in 2014 marked another attempt to legislate
jurisdictions. Efforts to enact a federal law for resale royalty resale royalties at the federal level, but it failed to pass.
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rights in the US have consistently failed. 15 This lack of federal action contrasts starkly with the more
In 2001, the EU made a significant advancement by comprehensive approaches seen in the EU and other parts
harmonizing these laws through the European resale right of the world. 26
directive. This directive ensured that visual artists across
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the EU were compensated for the resale of their works, 2.3.2. The EU
marking a vital step toward economic justice for artists Integrating droit de suite rules was a major step toward
within the bloc. This harmonization and the widespread guaranteeing fair recompense for artists throughout the EU.
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Volume 3 Issue 1 (2025) 3 doi: 10.36922/ac.2875