Author: Bolch, Ben W.; Damon, William W.; and Hinshaw, C. Elton

Publication Year: 1977

Media Type: Report

Summary:

In 1976, California enacted a version of the droit de suite designed to yield to artists a portion of the resale value of their works. The statute provides that, for the life of the artist, whenever a work of fine art is resold and the seller resides in California or the sale takes place in California, the seller or his agent must pay the artist or the artist's agent five percent of the amount of the sale. While the artist may executive a written contract for a resale royalty in excess of five percent, the artist cannot accept less.

Abstract:

In 1976, California enacted a version of the droit de suite designed to yield to artists a portion of the resale value of their works. The statute provides that, for the life of the artist, whenever a work of fine art is resold and the seller resides in California or the sale takes place in California, the seller or his agent must pay the artist or the artist's agent five percent of the amount of the sale. While the artist may executive a written contract for a resale royalty in excess of five percent, the artist cannot accept less. This article examines the probable economic impact of this legislation on the art market, museums and the artist.

The basic premise of the droit de suite is that an artist does not receive the true value of a work of art at its original sale. Proponents of the principle argue that true value is generally determined many years after the original sale and that the artist is exploited because any appreciation in value does not inure to the artist's benefit. The concept of the droit de suite is actually a variation on the more general doctrine of just price, which posits that things have an objective, intrinsic value in and of themselves. It is our belief that the notion of just price clouds the legal and economic analysis of the artist's right to a resale royalty. (p. 689-690).

CONTENTS
1. Introduction.
2. An economic model.
3. The California statute.
4. The Statute's effect on museums.
5. Conclusion.

Arts & Intersections:

Categories: Funding