Resale Royalty Scheme: Who Qualifies and What You Get

The Resale Royalty Scheme is a system designed to ensure that visual artists receive a portion of the money earned when their original artworks are resold through commercial channels. This mechanism allows artists to benefit financially from the increasing value of their work over time.

👤Who it's for

This scheme is specifically intended for visual artists. To qualify, your work must be categorized as visual art and must be subject to being resold through commercial means. If your creative output meets these criteria, you may be eligible to participate in the royalty distribution process.

🎁What you get

When an eligible artwork is resold, you are entitled to receive a royalty. This payment is calculated as 5% of the total sale price of the artwork. This payment acts as a way for the creator to share in the ongoing commercial success of their pieces as they move through the secondary market.

💰What it costs you

There is no fee to register for this scheme, making it free for artists to join. However, the process requires you to provide specific documentation to prove your authorship of the works in question. You will need to be able to demonstrate that you are the original creator to ensure the royalties are directed to the correct person.

⚠️The catch to know

It is important to understand the price threshold for these payments. The scheme does not apply to every single transaction; the royalty is only triggered on secondary market sales that are valued at more than $1,000. If a piece of art is resold for an amount below this specific limit, no royalty is issued under this scheme.

📝How to apply

1. Confirm that your creative work falls under the definition of visual art.
2. Gather all necessary documentation to serve as proof of your authorship.
3. Complete the registration process to ensure your work is recognized.
4. Monitor your status to ensure you are set up to receive royalties from commercial resales.