Select Committee on European Scrutiny Fifth Report


ARTISTS' RESALE RIGHTS


(18976)
6992/98
COM(98)78

Amended draft Directive on the resale right for the benefit of the author of an original work of art.
Legal base: Article 100a; co-decision; qualified majority voting
Department: Trade and Industry
Basis of consideration: Letter from Commissioner Monti of 10 December 1998
Previous consideration: HC 155-xxxii (1997-98), paragraph 2 (1 July 1998)
Committee's assessment: Politically important
Committee's decision: Not cleared. Further information requested.

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"[4] works is resold in the Community.

  3.2  When we last considered this proposal on 1 July 1998, we asked the Minister of State at the Department of Trade and Industry, Mr McCartney, to obtain from the Commission the "several comprehensive studies" covering the economic consequences of the proposal, which Commissioner Monti said that the Commission had undertaken, instead of a fiche d'impact.

  3.3  We also wrote, on 15 July, to Commissioner Monti, asking him to provide copies of the studies. We wrote to him again on 20 October, having received no acknowledgment of our earlier letter.

The Commissioner's reply

  3.4  The Commissioner does not provide copies of the studies but informs us that, at the request of the UK delegation[5], the Commission representative on the Council Working Party on intellectual property made a list available to delegations on 20 November 1998. This summarised "various studies" which were taken into account in the preparation of the draft Directive.

  3.5  Not only does the Commissioner regret that the draft Directive is now "entirely in the hands of the Council of Ministers", but he adds:

    "I regret to have to inform you that a majority of Council delegations seem to have taken the view that fluctuations in the exchange rate of major currencies will have a much more distorting effect on the art market than any introduction in the United Kingdom of a moderate rate of resale right."

  3.6  In conclusion, the Commissioner says:

    "I remain, however, convinced that the forthcoming Common Position of the Council will allay many of the fears expressed by the British art trade and support a healthy development of the market in 20th century art throughout the Community."

The Government's reply

  3.7  The Minister has not yet replied to our request for copies of the economic studies, but the Department has provided us with an informal copy of the list supplied by the Commission. We shall place this and a copy of the Commissioner's letter in the Library.

  3.8  We understand that the Presidency hopes that the Council Working Party which meets on 13 January will agree a text, with a view to COREPER considering a consolidated text on which a Common Position can be agreed by the Internal Market Council on 25 February.

Conclusion

  3.9  We ask the Government to inform us of the outcome of the Working Party meeting on 13 January, and to comment on the list and the adequacy of the evaluation carried out by the Commission, as described by the Commissioner, a copy of whose letter we shall forward to Mr McCartney. Meanwhile, we do not clear the document.

LIST OF STUDIES UNDERTAKEN IN THE FIELD OF DROIT DE SUITE

A number of studies commissioned by the private sector, dealing with the economic impact of droit de suite on the art market in general, as well as a number of other relevant documents on the subject, are listed below in chronological order. Furthermore, the Commission has also put forward, together with the original proposal for the directive on droit de suite, an explanatory memorandum encompassing 22 pages.


4  
The definition of "original" work is discussed in paragraph 4.3 of our Report of 29 April 1998: HC 155-xxvi (1997-98). Back

5  Our emphasis. Back


 
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Prepared 28 January 1999