ARTISTS' RESALE RIGHTS
(20550)
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Unofficial Presidency Compromise text of draft Directive on the
resale right for the benefit of the author of an original work of art.
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| Legal base: |
Article 95; co-decision; qualified majority voting
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| Department: |
Trade and Industry |
| Basis of consideration:
| Minister's letter of 10 March 2000
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| Previous Committee Report:
| HC 34-xxix (1998-99), paragraph 14 (27 October 1999)
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| To be discussed in Council:
| 16 March Internal Market Council
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| Committee's assessment:
| Politically important |
| Committee's decision:
| Cleared (decision reported on 27 October 1999)
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Background
3.1 The proposal would provide an artist
and his heirs for 70 years after his death, with a right, known
as droit de suite, to receive a royalty whenever one of
his "original" works was resold in the Community.
3.2 We cleared this proposal shortly before
the 28 October Internal Market Council (IMC), on the basis of
an earlier Presidency compromise text. The Government expected
the Council to adopt a Common Position then but, as the Parliamentary
Under-Secretary of State for Consumer and Corporate Affairs at
the Department of Trade and Industry (Dr Howells) reminds us in
his letter of 10 March, a decision was deferred, to allow more
time to explore ways of overcoming the concerns of the British
Government. It opposes the proposal in principle but has succeeded
in building support from other Member States for modifications
to reduce the deleterious effects on the London art market.
The Minister's letter and further information
from the Department
3.3 We understand that negotiations are
continuing. The Portuguese Presidency submitted a compromise package
to COREPER on 10 March and further changes were negotiated. The
situation is moving rapidly and the unofficial text attached to
the Minister's letter will be replaced by a later text, which
will be put to COREPER on 15 March. If agreed there, the Presidency
may put it to the 16 March IMC, or may wait and put the text to
a later Council as an 'A' point after it has been worked on by
the jurist/linguists.
3.4 The Presidency are hoping to secure
agreement to a text which will include:
- a minimum threshold of 4000 euro;
- a cap on the levy of 12,500 euro;
- a transposition period of five years;
- the Right shall not apply to an artist's heirs
for 10 years after the Directive comes into force. This derogation
will benefit those Member States which, at the date of adoption,
did not apply the Right;
- an obligation on the Commission to enter into
negotiations with third countries, with the aim of the same rights
being applied as widely as possible at international level;
- a review, after three years and then periodically,
of the impact of the Directive on the ability of Member States
to compete in the international art market.
3.5 The Government expects that most of
these changes, which it would welcome, will be secured. Negotiations
continue on the length of the derogation, with residual support
for five years.
3.6 The Minister says that the Government
has not decided how it will vote, since that will depend on the
final package. However, the voting procedure is by qualified majority
and most Member States are thought now to wish to see this contentious
proposal agreed, without negotiations continuing for much longer.
Even if a Common Position is agreed soon, and the European Parliament
does not propose amendments at Second Reading which the Council
cannot accept, implementation may present difficulties, according
to officials. The Directive gives artists the right to information
on sales. Many vendors at present wish to remain anonymous.
Conclusion
3.7 The Government appears to be well
on the way to winning some further important concessions and can
be expected to welcome a text on the lines described above.
3.8 We thank the Minister for providing
us with this information and ask him to continue to keep us up
to date on the progress of this proposal.
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