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A Handbook of Cultural Economics, Second Edition

A Handbook of Cultural Economics, Second Edition

Elgar original reference

Edited by Ruth Towse

The second edition of this widely acclaimed and extensively cited collection of original contributions by specialist authors reflects changes in the field of cultural economics over the last eight years. Thoroughly revised chapters alongside new topics and contributors bring the Handbook up to date, taking into account new research, literature and the impact of new technologies in the creative industries.

Chapter 55: Resale Rights

Victor Ginsburgh

Subjects: economics and finance, cultural economics, intellectual property, public sector economics


1 Victor Ginsburgh The resale right (RR) is the right enjoyed by the author (and his/her heirs, since the right runs for 70 years after the author’s death) of an original  work of art to an economic interest in its successive sales. According to the Directive of the European Parliament,2 the right is supposed to ensure that artists benefit from successive ‘exploitations’3 of their work. All EU countries had to comply with the Directive before 1 January 2006, although derogations were possible.4 In principle, the right extends to all resales, with the exception of transactions between persons acting in their private capacity. The royalty is calculated as a percentage of the sale price, and not of the increase (or decrease) in value of works. Economists (and lawyers) who analyse the economic consequences of RR generally reach the conclusion that it is inefficient. Those who are in favour of its introduction tend to concentrate upon the uneven bargaining position between the artist and the art dealer, and condemn the profits that dealers and auction houses supposedly reap from the artist’s labour. Whether or not these injustices can be corrected by introducing RR is dealt with from a protectionist perspective and, consequently, the deeper implications of the right are not usually analysed.5 It is suggested here that not only would RR worsen the position for the contemporary artist, but it would also have a detrimental effect on international art trade for the states in which it is introduced. As I shall...

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