Droit de Suite in China?

The Art Newspaper reports the Chinese government is considering starting legislation to allow royalty payments when property is resold at auction.  Part of the rationale is to stem the growing tide of fakes and forgeries being introduced to the market through Chinese auction houses.

The Art Newspaper reports

China is considering introducing legislation that means artists will receive royalty payments when their work is resold at auction. The droit de suite (artists’ resale right) clause is contained in the draft of a new copyright law soon to be submitted to China’s State Council, the country’s cabinet.

According to the draft, the resale right would apply to original works of fine art and photography, as well as literary and musical manuscripts. It says that creators or their heirs have a right to share in any profit if the owner of the original piece sells it via auction.

China’s first copyright law took effect in 1991, and the latest draft brings the country closer into line with prevailing European standards. More than 60 countries have droit de suite legislation, although the introduction of a resale fee has often proved controversial, as it is not universally applied.

Limiting the market

The debate in China over the resale clause has also proved heated. Gan Xuejun, the chairman and general manager of Huachen Auction, says the move is “absurd”, “unfair” and “unwise”. “It will limit the trading interest and enthusiasm of collectors and artists,” he says in his post on the popular microblogging site Sina Weibo (China’s equivalent of Twitter). China’s two biggest auction houses—China Guardian and Beijing Poly—declined to comment.

It is not clear how many artists or their descendants might benefit from the proposal, but given that 20th-century Chinese painting and calligraphy have comprised one of the most active categories at auction in recent years, observers say it could have a negative impact on the market.

Source: The Art Newspaper