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5% Resale Royalty: The bill proposes that creators of visual art (or their estates) receive a 5% royalty of the price paid for their art when it is resold by an "art market professional" (like an auction house or gallery).
Threshold: This royalty would apply to commercial resales of a work of visual art for a price of $5,000 or more.
Duration: The entitlement to this resale royalty would subsist for the duration of the term of copyright protection for the visual artwork (generally, life of the author plus 70 years).
Collection Societies: Visual artists' collecting societies would be responsible for collecting and distributing these royalties.
Limited Edition Focus: The royalty applies to "resale copies," defined as the material object in which the work of visual art is fixed, in a single or limited edition.
Cap: While the current text doesn't explicitly state a cap in the snippet, previous iterations of similar bills have included a cap (e.g., $35,000), suggesting a potential for one in the final version or future amendments. (Note: One search result from 2015 mentioned a $35,000 limit, but the 2025 bill text only mentions a maximum of $50,000 for the royalty amount.)
The core argument for the ART Act is to address a perceived inequity in U.S. copyright law regarding visual artists, especially compared to other creators and artists in other countries.
Current Disparity: Under current U.S. copyright law, visual artists are primarily compensated for the first sale of their work. If an early work by a young artist sells for a small sum and later appreciates significantly, the artist receives no share of that increased value, with the profit going to collectors and art dealers. This contrasts with musicians who earn royalties when their songs are played, or authors who receive royalties for each book sold.
International Harmonization: More than 105 countries, including all members of the European Union, have a "droit de suite" or resale royalty right. The ART Act aims to bring the United States in line with this international standard, ensuring American artists benefit when their works are resold, whether domestically or abroad.
Fairness and Financial Support: Proponents argue that the bill would provide financial support and fairness to visual artists, many of whom live on limited incomes even as their early works gain significant value. It aims to recognize the artist's continued connection to their creation throughout its commercial life.
The American Royalties Too Act of 2025 represents a renewed effort to bring a resale royalty right to visual artists in the United States, continuing a debate that has spanned decades.