Document Type

Blog Post

Publication Date

5-1-2025

Abstract

Resale rights can be understood to be a form of royalty payments that compensate visual artists for subsequent sales after the initial sale of their artwork. In contrast to the schemes available to music artists in the United States, who receive payment for subsequent use of their works through licenses for public performance, synchronization licenses, or mechanical licenses, visual artists lack the ability to profit from the resale of their creations. This discrepancy separates the United States from the approaches to resale rights in many European countries and other countries that have adopted this system. Countries that recognize resale rights for visual artists largely follow the droit de suite system, which extends beyond the finance-focused intentions of intellectual property protections to recognize moral rights in artistic creations. While there have been attempts to bring resale rights to visual artists in the United States, these efforts experienced limited success. For example, California is currently the only state to recognize resale rights for visual artists, limiting their applicability to in-state sellers and transactions. However, resale rights do exist in the non-fungible tokens (NFTs) industry. Smart contracts have built-in options for the implementation, calculation, and payment of resale royalties. While resale rights can be implemented via the initial sale contracts for the visual art industry, protection for this kind of right on a federal level could ensure that visual artists are protected economically and also send a message that artists are not valued simply for their ability to turn a profit, but also that the art they create is beneficial just by being art.

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