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The Hon Peter Garrett MP
Minister for Environment Protection, Heritage and the Arts

Collecting society appointed for resale royalty scheme

Media release
7 April 2010

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Arts Minister Peter Garrett today announced that Copyright Agency Limited (CAL) is the successful tenderer to act as the collecting society to implement and administer the resale royalty scheme for visual artists.

Minister Garrett said CAL is an Australian copyright management company and was selected following an open tender process.

"CAL has 20 years experience collecting and paying royalties to creators. This will be invaluable to the establishment and ongoing roll out of the scheme," Mr Garrett said.

"The implementation of a resale royalty scheme is a really significant result for Australia's visual artists. It will help them to earn income as the value of their works appreciate and bring them into line with other creators such as musicians and authors.

"CAL will be appointed as the collecting society under the Resale Royalty Right for Visual Artists Act 2009. It will set up the resale royalty scheme, establish an advisory body, collect and pay royalties to artists, educate the sector about the scheme and develop reciprocal arrangements with other countries that have resale royalty schemes in place."

The Act, which passed into law in December 2009, establishes, for the first time, the right for visual artists to receive five per cent of the sale price when works are resold through the art market for $1000 or more. The right applies to living artists and for a period of 70 years after an artist's death.

Artworks covered by the scheme include paintings, drawings, forms of fine art textiles, installations, fine art jewellery, artist's books, carvings, and multimedia artworks.

The scheme is prospective, applying only to resales of original works acquired after the scheme takes effect. Once the scheme starts, the resale royalty will be payable on the second sale of an artwork.

"This means buyers will purchase works knowing that when they resell them the royalty will be charged. The resale royalty will not apply to the first sale of works that were purchased before the scheme started," Mr Garrett said.

"CAL will charge a flat 10 per cent administrative fee of royalties collected, to cover the costs of implementing the scheme. For example, the resale of a $1000 artwork will entitle an artist or right holder to $45-a royalty of $50 less the 10 per cent administrative fee of $5."

The Australian Government has committed funding of $1.5 million over three years for the collecting society to set up the scheme's administration.

The scheme will operate from 9 June 2010. More information at 

Commonwealth of Australia