Distribution of resale royalties achieves 99% success
DACS has paid artists more than 99% of the £1.2 million of resale royalties collected for Artist’s Resale Right in 2006.
Six years after the first collections of this new Right, there remains £8,183 of royalties for artists who have not been found. Only £5,850 of the undistributed royalties relate to sales which took place in the UK by just seven art market professionals.
“We are delighted that we have successfully found and paid so many artists their resale royalties,” says Gilane Tawadros, Chief Executive. “This result reflects the diligent work done by our team who have worked hard to find artists who were not aware of the royalties owed to them.”
DACS’ team dedicated to finding artists has received training from experts in tracing missing heirs and beneficiaries. Plans are in place to expand the team following the full implementation of the Artist’s Resale Right earlier this year.
As a not-for-profit organisation, DACS does not intend to retain these undistributed royalties for more than six years. After consultation with art market professionals, DACS has set out its plans for the repayment of these funds:
• Royalties reaching the six year threshold will be paid back to art market professionals at the end of each year. For example, royalties remaining undistributed from 2006 will be returned at the end of 2012.
• In situations where the cost of the royalty was passed on to the buyer or seller of the art work, art market professionals will be asked to return the royalty to the person who originally paid it.
• DACS will retain 15% of the royalties, representing the administration charge placed on all resale royalties. This charge covers DACS’ cost of administration and the cost of the process DACS undertakes to search for artists to whom royalties are owed.
The undistributed royalties relate to 116 sales of works by 92 artists, with an average resale royalty of £70.
Since the Artist’s Resale Right was introduced in the UK in 2006, artists have received more than £14.6 million in resale royalties. From 1 January 2012 the Right was extended to include the family and beneficiaries of deceased artists (up until 70 years after the death of the artist).
Tania Spriggens
Director of Communications
Design and Artists Copyright Society (DACS)
33 Great Sutton Street
London EC1V ODX
T: +44 (0)20 7553 9052
F: +44 (0)20 7336 8822
www.dacs.org.uk
John R Walker
April 16, 2012
%99 percent delivery! Remarkable!!
Especially At a %15 management fee.
Curious …What is the fixed individual transaction cost for DACS?
John R Walker
April 17, 2012
Ps
What was the gross total, resale royalty collection for the reported period?
Were VAT (transaction/goods/services ) also taxes deducted?
In Australia resale royalties are not collected for artists without a known successor.
http://superartbusiness.com.au/?p=233
Will DACS collect resale royalties on behalf of dead artists who are known to have no successor in title?
Cheers
Exhibitors
April 17, 2012
Dear John,
There is a Q’s & A’s post for both DACS and ACS ( The UK’s two main ARR collecting Societies) which as far as we are aware remain live. These posts should be used to address questions you may have. We understand that the Artists’ Resale Right has attracted strong views from all sides of the debate. However, now that the legal framework is in place, these forums should be used to address enquiries you may have about the practicalities of the Right. Please find links to the Q’s & A’s posts below.
http://art-antiques-design.com/2012/01/29/artist-resale-right-q-a/
http://art-antiques-design.com/2012/02/12/artists-re-sale-right-qs-as-droite-de-suite/
Tania Spriggens
April 17, 2012
Dear John,
As the press release mentions, DACS collected £1.2 million in resale royalties in 2006. Artist’s Resale Right in the UK is outside of VAT so there is no VAT applicable. The 15% administration charge made by DACS covers the cost of the service. This rate is reviewed on an annual basis.
Where an artist is known to have no successor in title, taking this to mean that there is no will and the rules of intestacy have been applied, the UK law stipulates that it goes to the Crown.
Kind regards
Tania
John R Walker
April 17, 2012
Dear Tania
In order to save you time:
DACS charge for Copyright Licensing is 25% .
DACS charges for it’s secondary licensing Scheme ‘Payback’ are 20% .
DACS 99% delivery of the resale royalty at just 15% costs is quite an achievement!
Will DACS be applying the same efficiency gains to its other service costs?
Kind regards,
John
John R Walker
April 17, 2012
Dear Tania
What is DACS administration charge for its other collection services?
Kind regards,
John
Exhibitors
April 17, 2012
Dear John,
There is a Q’s & A’s post for both DACS and ACS (The UK’s two main ARR collecting Societies) which as far as we are aware remain live. These posts should be used to address questions you may have. We understand that the Artists’ Resale Right has attracted strong views from all sides of the debate. However, now that the legal framework is in place, these forums should be used to address enquiries you may have about the practicalities of the Right. Please find links to the Q’s & A’s posts below.
http://art-antiques-design.com/2012/01/29/artist-resale-right-q-a/
http://art-antiques-design.com/2012/02/12/artists-re-sale-right-qs-as-droite-de-suite/
John R Walker
April 17, 2012
Dear exhibitors Sorry.. Am a bit unsure where to post questions about Ms Tania’s reponses?
Exhibitors
April 17, 2012
Dear John
You can post them right here as you have done but questions do have to be concerning the practicalities of the ARR implementation as outlined above.
Kind regards,
Tania Spriggens
April 23, 2012
Dear John
Apologies for my slow response to your earlier posts. Our administration charges are reviewed annually. The three services we offer artists have different operational requirements. You can find out more about our other services for artists on our website: http://www.dacs.org.uk.
Thanks
Tania