The Artist’s Resale Right (Droit de suite) is a royalty generated on the sale price of original works of art that are sold on the secondary market for €1,000 or more in UK and €3000 in ROI. ARR lasts for as long as copyright, which is lifetime plus 70 years.
The royalty is worked out according to a simple sliding scale from 4% to 0.25%. It’s cumulative, which means that where the sale price is higher than the first threshold, the royalty on each portion of the price must be calculated accordingly and added together, and is generally paid by buyer.
Artists who are nationals of the EEA countries are eligible to receive resale royalties.
Royalties are calculated on the hammer price, excluding VAT. The maximum you can receive is capped at €12,500, for one sale of a work, which is reached by works sold for €2 million or more. The royalty rates are dictated by the law and are not subject to negotiation.
When the collecting agency submits their invoice for the royalties, these can be reconciled against a ARR ledger entries.