American Royalties Too Act of 2014 - Expands copyright owners' exclusive rights, in the case of a work of visual art, to include the right to collect or authorize the collection of a royalty if the work is sold by a person other than the author for at least $5,000 in an auction.
Defines "auction" as a public sale of visual art to the highest bidder run by an entity that sold at least $1 million of works of visual art during the previous year.
Revises the term "work of visual art" to make requirements for photographs consistent with requirements for paintings, drawings, and prints. (Currently, a photograph must be a still photographic image produced for exhibition purposes only.)
Limits the amount of such a royalty to the lesser of: (1) 5% of the purchase price; or (2) $35,000, subject to cost-of-living adjustments.
Directs entities conducting such auctions to collect and pay the royalties to a visual artists' copyright collecting society. Requires the collecting society, at least four times each year, to distribute the appropriate royalties (minus administrative expenses) to authors or successor copyright owners.
Requires an author of a work of visual art, in order to be eligible to receive such a royalty, to: (1) be a citizen of, or domiciled in, the United States or a country that provides resale royalty rights; or (2) have first created the work in the United States or a country that provides such royalty rights.
Establishes a copyright infringement offense for the failure to pay such a royalty. Subjects infringers to: (1) statutory damages, and (2) liability for the full royalty.
Prohibits the sale, assignment, or waiver of the right to collect such a royalty, subject to exceptions for works made for hire and transfers of copyright ownership.
Directs the Register of Copyrights to issue regulations governing visual artists' copyright collecting societies.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4103 Introduced in House (IH)]
113th CONGRESS
2d Session
H. R. 4103
To amend title 17, United States Code, to secure the rights of visual
artists to copyright, to provide for resale royalties, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 26, 2014
Mr. Nadler introduced the following bill; which was referred to the
Committee on the Judiciary
_______________________________________________________________________
A BILL
To amend title 17, United States Code, to secure the rights of visual
artists to copyright, to provide for resale royalties, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``American Royalties Too Act of
2014''.
SEC. 2. DEFINITIONS.
Section 101 of title 17, United States Code, is amended--
(1) by inserting after the definition of ``architectural
work'' the following:
``An `auction' means a public sale at which a work of
visual art is sold to the highest bidder and which is run by an
entity that sold not less than $1,000,000 of works of visual
art during the previous year.'';
(2) by inserting after the definition of ``Pictorial,
graphic, and sculptural works'' the following:
``For purposes of section 106(b), `price' means the
aggregate of all installments paid in cash or in-kind by or on
behalf of a purchaser for a work of visual art as the result of
the auction of that work.'';
(3) by inserting after the definition of ``registration''
the following:
``For purposes of sections 106(b) and 701(b)(5), `sale'
means transfer of ownership or physical possession of a work of
visual art as the result of the auction of that work.''; and
(4) in the definition of ``work of visual art'', by
striking ``A `work of visual art' is--'' and all that follows
through ``by the author.'' and inserting the following: ``A
`work of visual art' is a painting, drawing, print, sculpture,
or photograph, existing either in the original embodiment or in
a limited edition of 200 copies or fewer that bear the
signature or other identifying mark of the author and are
consecutively numbered by the author, or, in the case of a
sculpture, in multiple cast, carved, or fabricated sculptures
of 200 or fewer that are consecutively numbered by the author
and bear the signature or other identifying mark of the
author.''.
SEC. 3. EXCLUSIVE RIGHTS.
Section 106 of title 17, United States Code, is amended--
(1) by inserting ``(a) In General.--'' before ``Subject to
sections 107 through 122'';
(2) in paragraph (5), by striking ``and'' at the end;
(3) in paragraph (6), by striking the period at the end and
inserting ``; and''; and
(4) by adding at the end the following:
``(7) in the case of a work of visual art, to collect a
royalty for the work if the work is sold by a person other than
the author of the work for a price of not less than $5,000 as
the result of an auction.
``(b) Collection of Royalty.--
``(1) In general.--The collection of a royalty under
subsection (a)(7) shall be conducted in accordance with this
subsection.
``(2) Calculation of royalty.--
``(A) In general.--The royalty shall be an amount
equal to the lesser of--
``(i) 5 percent of the price paid for the
work of visual art; or
``(ii) $35,000.
``(B) Adjustment of amount.--In 2015 and each year
thereafter, the dollar amount described in subparagraph
(A)(ii) shall be increased by an amount equal to the
product of--
``(i) that dollar amount; and
``(ii) the cost-of-living adjustment
determined under section 1(f)(3) of the
Internal Revenue Code of 1986 for the year,
determined by substituting `calender year 2015'
for `calendar year 1992' in subparagraph (B)
thereof.
``(3) Collection of royalty.--
``(A) Collection.--Not later than 90 days after the
date on which the auction occurs, the entity that
conducts the auction shall--
``(i) collect the royalty; and
``(ii) pay the royalty to a visual artists'
copyright collecting society.
``(B) Distribution.--Not fewer than 4 times each
year, the visual artists' copyright collecting society
shall distribute to the author or his or her successor
as copyright owner an amount equal to the difference
between--
``(i) the net royalty attributable to the
sales of the author; and
``(ii) the reasonable administrative
expenses of the collecting society as
determined by regulations issued under section
701(b)(5).
``(4) Failure to pay royalty.--Failure to pay a royalty
provided for under this subsection shall--
``(A) constitute an infringement of copyright; and
``(B) be subject to--
``(i) the payment of statutory damages
under section 504(c); and
``(ii) liability for payment of the full
royalty due.
``(5) Right to collect royalty.--The right to collect a
royalty under this subsection may not be sold, assigned, or
waived except as provided in section 201.
``(6) Eligibility to receive royalty payment.--The royalty
shall be paid to--
``(A) any author of a work of visual art--
``(i) who is a citizen of or domiciled in
the United States;
``(ii) who is a citizen of or domiciled in
a country that provides resale royalty rights;
or
``(iii) whose work of visual art is first
created in the United States or in a country
that provides resale royalty rights; or
``(B) the successor as copyright owner of an author
described in subparagraph (A).''.
SEC. 4. NOTICE OF COPYRIGHT.
Section 401 of title 17, United States Code, is amended by adding
at the end the following:
``(e) Non-Applicability to Works of Visual Art.--The provisions of
this section shall not apply to a work of visual art.''.
SEC. 5. COPYRIGHT OFFICE.
Section 701(b) of title 17, United States Code, is amended by--
(1) redesignating paragraph (5) as paragraph (6); and
(2) inserting after paragraph (4) the following:
``(5) Issue regulations governing visual artists' copyright
collecting societies described in section 106, that--
``(A) establish a process by which an entity is
determined to be and designated as a visual artists'
copyright collecting society, that--
``(i) requires that a visual artists'
copyright collecting society authorized to
administer royalty collections and
distributions under this title shall--
``(I) have prior experience in
licensing the copyrights of authors of
works of visual art in the United
States; or
``(II) have been authorized by not
fewer than 10,000 authors of works of
visual art, either directly or through
reciprocal agreements with foreign
collecting societies, to license the
rights granted under section 106; and
``(ii) prohibits an entity from being
designated as a visual artists' copyright
collecting society if, during a period of not
less than 5 years that begins after the date on
which the entity is designated as a visual
artists' copyright collecting society, the
entity does not distribute directly to each
author, or to the successor as copyright owner
of each author, the amount of the royalties
required to be distributed under section
106(b)(3)(B);
``(B) determine a reasonable amount of
administrative expenses that a visual artists'
copyright collecting society may deduct from the
royalties payable to an author of a work of visual art
under section 106(b)(3); and
``(C) establish a process by which--
``(i) not less frequently than annually, a
visual artists' copyright collecting society
may request from any entity that conducts
auctions a list of each work of visual art sold
in those auctions that is by an author
represented by the collecting society; and
``(ii) an author of a work of visual art
may obtain from a visual artists' copyright
collecting society any information requested by
the collecting society under clause (i) that
relates to a sale of a work of visual art by
the author, including the amount of any royalty
paid to the collecting society on behalf of the
author.''.
SEC. 6. STUDY REQUIRED.
Not later than 5 years after the date of enactment of this Act, the
Register of Copyrights shall--
(1) conduct a study on--
(A) the effects, if any, of the implementation of
this Act, and the amendments made by this Act, on the
art market in the United States; and
(B) whether the provisions of this Act, and the
amendments made by this Act, should be expanded to
cover dealers, galleries, or other professionals
engaged in the sale of works of visual art; and
(2) submit to the Committee on the Judiciary of the Senate
and the Committee on the Judiciary of the House of
Representatives a report on the study described in paragraph
(1), including any recommendations for legislation.
SEC. 7. EFFECTIVE DATE.
This Act and the amendments made by this Act shall take effect on
the date that is 1 year after the date of enactment of this Act.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on the Judiciary.
Referred to the Subcommittee on Courts, Intellectual Property, and the Internet.
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