H.R.4017 - American Royalties Too Act of 2025 (119th Congress)
Summary
H.R. 4017, the American Royalties Too Act of 2025, seeks to amend Title 17 of the United States Code to provide resale royalties to visual artists. This bill mandates that artists receive a royalty, capped at 5% of the sale price or $50,000, for commercial resales of their work exceeding $5,000, handled through designated collecting societies. The bill also addresses copyright notice requirements and requires a study on the act's implementation within five years.
The legislation defines key terms like 'art market professional,' 'author's successor,' and 'commercial resale' to clarify the scope of the royalty. It outlines the process for collecting and distributing royalties, including provisions for unclaimed royalties and legal recourse for non-payment.
Finally, the bill tasks the Register of Copyrights with establishing regulations for designating collecting societies and managing royalty distribution. The act is set to take effect one year after its enactment.
Expected Effects
The primary effect of this bill would be to create a new revenue stream for visual artists from the resale of their work. This could incentivize artistic creation and provide financial support to artists throughout their careers and to their heirs.
Art market professionals would be required to collect and remit these royalties, potentially increasing administrative burdens. The Copyright Office would also gain new responsibilities in overseeing the collection and distribution process.
Ultimately, the bill aims to rebalance economic benefits within the art market, shifting some profits from dealers and collectors towards the original creators.
Potential Benefits
- Provides additional income to visual artists, especially those whose work appreciates significantly in value.
- Supports the cultural sector by incentivizing artistic creation.
- Creates a framework for managing and distributing royalties through collecting societies, potentially streamlining the process.
- Offers a mechanism for artists or their successors to seek legal recourse in cases of royalty non-payment.
- May bring the US into alignment with other countries that already provide resale royalties for artists.
Potential Disadvantages
- Increases administrative burdens and costs for art market professionals, potentially impacting smaller businesses.
- May lead to increased prices for art, potentially affecting collectors and the art market overall.
- Could create complexities in determining authorship and succession, especially for collaborative works.
- The $5,000 threshold might exclude many artists from benefiting, while the $50,000 cap could limit royalties for highly valuable works.
- The creation of collecting societies adds another layer of bureaucracy and potential for administrative inefficiencies.
Most Disadvantaged Areas:
Constitutional Alignment
The bill's alignment with the US Constitution primarily concerns Article I, Section 8, Clause 8, which grants Congress the power to "promote the Progress of Science and useful Arts, by securing for limited Times to Authors and Inventors the exclusive Right to their respective Writings and Discoveries." This clause forms the basis for copyright law.
The proposed resale royalty can be argued to further this constitutional objective by providing additional economic incentives for artistic creation. However, some might argue that it infringes on the rights of property owners to freely dispose of their property after its initial sale.
Overall, the bill appears to fall within the broad scope of Congress's power to regulate copyright, although its specific provisions could be subject to legal challenges regarding their reasonableness and impact on interstate commerce.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).