HR4017-119

What This Bill Does

The American Royalties Too Act creates a federal resale royalty for works of visual art. For a commercial resale of a resale copy by or with an art market professional, after the first sale, at a price of $5,000 or more, the author of the work is entitled to a royalty separate from ordinary copyright exclusive rights. The royalty lasts for the copyright term and is the lesser of 5 percent of the resale price or $50,000, with the dollar cap indexed for inflation using the C-CPI-U. The right can pass to an author's successor after death. The bill defines art market professionals, resale copies, commercial resales, price, successors, and visual artists collecting societies. Collecting societies administer royalties and the system is designed to capture value when artworks appreciate in secondary markets. Section 401 copyright notice requirements do not apply to works of visual art. The Register of Copyrights must study implementation and report to House and Senate Judiciary within five years with legislative recommendations. The Act takes effect one year after enactment.

Who Benefits and How

Visual art workers benefit from a new royalty when covered works resell commercially for $5,000 or more. Artist heirs benefit because the resale royalty can continue after the artist's death during the copyright term. Collecting society administrators benefit from a statutory role administering resale royalties. Copyright Office staff benefit from a defined implementation study and reporting mandate.

Who Bears the Burden and How

Art market professionals must account for resale royalties in covered commercial resales. Auction house employees must handle royalty obligations when they intervene in qualifying resales. Art collectors may face higher transaction costs if royalties are reflected in sale prices. Art dealers receive less net resale revenue when a royalty must be paid. The Register of Copyrights must conduct a five-year implementation study.

Key Provisions

• Creates a resale royalty for visual-art commercial resales priced at $5,000 or more.
• Provides a royalty equal to the lesser of 5 percent of price or $50,000 indexed for inflation.
• Extends the royalty for the copyright term and allows successors to hold the right.
• Uses visual artists collecting societies to administer royalties.
• Exempts works of visual art from copyright notice provisions.
• Requires a Copyright Office implementation study within five years.
• Provides a one-year delayed effective date.