Monaco: Resale Right In Monaco

A brief overview of the resale right in Monaco

The resale right allows authors to receive, after the first transfer, a share in the proceeds of any sale of original, graphic, plastic and manuscript works involving an art market professional as seller, buyer or simple intermediary.

It applies to Monegasque and foreign authors, provided they have been resident in the Principality for at least 5 years or are nationals of a country that reciprocally recognizes this right for Monegasque authors.

Its amount is calculated according to a decreasing rate for a maximum amount of €12,000 and applies for a post-mortem period extended to 70 years.

The contributions of Sovereign Order n°10.300

The scope of the resale right

First of all, Sovereign Order n°10.300 of 22 December 2023 clarifies the scope of the resale right.

It now only applies to sales subject to VAT above €750. The resale of the work less than three years after the initial transfer by the author is also exempt from resale right if the sale price is less than €10,000.

As for original works published in limited quantities of copies, they are subject to specific conditions of taxation :

• They must contain a numbering, a signature or an explicit authorization of the author ;
  
• Their number must not exceed the following thresholds :
  • Original engravings, prints and lithographs : one or more plates ;
  • Sculpture editions : twelve numbered copies and artist's proofs combined ;
  • Handmade tapestries and textile artworks, based on original models provided by the artist: eight copies ;
  • Enamels executed entirely by hand and signed by the artist : eight numbered copies and four artist's proofs ;
  • Signed photographic works, regardless of format and medium : thirty copies ;
  • Plastic creations on audiovisual or digital media : twelve copies.

In addition, the requirement for the involvement of an art market professional, responsible for the proper payment of the resale right to the author, has been reinforced.

Collection by a collective management organisation

Finally, the Order sets out the conditions under which a collective management organisation may be authorised by the Minister of State to collect the resale right in Monaco.

A collective management organisation is a non-profit legal entity set up to manage copyright on behalf of several rights holders.

It collects and pays to the rightholders the income derived from the exploitation of these rights, as well as the resale right on the proceeds of the sale of the works.

As an illustration, in France, the Society of Authors in the Graphic and Plastic Arts (ADAGP) and the Society of Authors of the Visual Arts and the Still Image (SAIF) are authorised collective management organisations.

The authorisation of the Minister of State will be granted if the entity can justify the professional skills of its representatives, its ability to inform the beneficiaries of the resale right, and guarantees of good character.

The collective management organisation may also have its registered office outside Monaco. However in this case, it must be represented by a legal or natural person domiciled in the Principality. The representative is also required to provide information on their professional qualifications, organisation and guarantees of good character.

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The Sovereign Order of 5 January 2024 contributes to reinforce authors' rights and is part of the modernisation effort that the bill of law n°1045 on the recognition and regime of ownership of intellectual works also intends to enshrine.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.