Directive 2001/84/EC was implemented on 27 September 2001 to ensure that authors of original work benefit from successive exploitations of their works.
The resale right is a right of a productive character which enables the author or the artist to receive consideration for successive transfers of the work. The subject-matter of the resale right is the physical work, namely the medium in which the protected work is incorporated.
The Protection of Intellectual Property Rights Law N. 123(I)/2006 has ratified the above mentioned Directive into national law.
Subject matter of the resale right
The resale right for the benefit of the author of an original work of art is an inalienable right which cannot be waived, even in advance, to receive a royalty based on the sale of the price obtained for any resale of the work, subsequent to the first transfer of the work by the author.
The right applies to all acts of resale involving as sellers, buyers or intermediaries art market professionals, such as salesrooms (auction houses), art galleries and in general, any dealers in works of art.
In every such resale, the author, and upon the author’s death, his successors in title, have right to request from the seller a royalty for such resale. It should be noted that the artist’s successors in title have such a right for 70 years after the artist’s death.
Works of art which the resale right relates to
“Original work of art” means works of graphic or plastic art such as pictures, collages, paintings, drawings, engravings, prints, lithographs, sculptures, tapestries, ceramics, glassware, wall hand-made carpets and photographs, provided they are made by the artist himself or are copies considered to be original works of art.
Copies of works of art which have been made in limited numbers by the artist himself or under his authority are considered to be original works of art. Such copies are normally numbe
red, signed or otherwise duly authorised by the artist.
Threshold
The minimum resale price for the above right to exist is EUR 3000 (or its equivalent in Cyprus pounds).
Rates
The royalty provided for the sale price (without including VAT) is set at the following rates:
(a) 4% of the portion of the sale price up to EUR 50,000;
(b) 3% for the portion of the sale price from EUR 50,000.01 to EUR 200,000;
(c) 1% of the portion of the sale price from EUR 200,000.01 to EUR 350,000;
(d) 0.5% of the portion of the sale price from EUR 350,000.01 to EUR 500,000;
(e) 0.25% of the portion of the sale price exceeding EUR 500,000.01.
Please note, however, that the total amount of the royalty may not exceed EUR 12,500.
Third country nationals entitled to receive royalties
Authors or their successors in title who are nationals of third countries and do not have their permanent residence in Cyprus, shall enjoy the resale right provided the legislation in the country of which the author or his successors in title is a national permits resale right protection in that country from the Members States or their successors in title.
Right to obtain information
The author or his successors in title may require, within a period of 3 years after the resale, from any art market professional (as defined above) to furnish any information that may be necessary in order to secure payment of royalties in respect of the resale.
Course of action in case of infringement of resale right
On the application of an author or his successors in title accompanied by reasonable evidence justifying an infringement or possible infringement of a resale right (while he may also request disclosure of evidence under the control of the opponent), the court may issue anof disclosure of such evidence by the opponent. The court may further order disclosure of bank statements or commercial documents under the possession of the opponent.