What is resale right?
Also known as “droit de suite”, it is the inalienable right of the author or his heirs, or his representatives to participate in the gross proceeds in every sale or lease of his original work, painting, sculpture, or manuscript, subsequent to the first disposition thereof by the author.
The resale right subsists during the lifetime of the author plus fifty (50) years after his death. If the work is jointly authored, the resale right shall be from the moment of creation plus fifty (50) years after the death of the last surviving author.
Such resale right is transmitted to the author’s heirs upon his death.
Are all subsequent sales of original works of painting, sculpture, or manuscript covered?
No. Under the Intellectual Property Code, the following works are not covered by resale right:
a. Prints, etchings, engravings, works of applied art, and works of a similar kind wherein the author primarily derives gain from the proceeds of reproductions; and
b. Subsequent sales that are:
i. Made directly between private individuals without the participation of an art market professional; or
ii. Made by individuals to public museums.
What are the mechanics of resale?
According to Implementing Rules and Regulation on Resale Rights, the sale or lease of an original work of art shall be regarded as a resale provided that the subsequent sale involves a professional party or intermediary. In case of a lease, it must be for a term of one (1) year or longer and it must be on a written contract. Further, the original work must be enrolled and registered in the Registry established under IPOPHL Memorandum Circular No. 2020-023.
Who has the liability to pay resale royalty?
The seller has sixty (60) days from the date of the sale or lease of work to pay the resale royalty to the author or his heirs. However, the seller may withhold payment from a person claiming resale rights if he or she cannot produce sufficient evidence that he or she is entitled to such resale rights.
What is the percentage of resale royalty?
GROSS SELLING PRICE (PHP) PERCENTAGE AMOUNT
Up to 150,000.00 5%
150,000.01 – 350,000.00 4%
350,000.01 – 600,000.00 3%
600,000.01 – 1,000,000.00 2%
1,000,000.01 – 2,000,000.00 1.5%
2,000,000.01 – above 1%
What is the Registry of Qualified works?
Pursuant to Rule IV of Implementing Rules and Regulation on Resale Rights, the National Registry of Qualified Works was created, and it shall be maintained by the Bureau of Copyright. This registry shall serve as the repository of information on the authors of the work for purposes of remittance on the resale royalty. It shall also provide for the means for the enrollment and registration of works.