In late February 2022, New Zealand signed a free trade agreement with the United Kingdom, and has now also concluded negotiations with the EU on a free trade agreement.

Not only do these agreements provide more favourable market access for New Zealand traders, they will drive developments in the intellectual property space including around artists’ resale rights.

The UK Free Trade Agreement establishes the right of artists to receive a royalty based on the sale price of any original work of art that is resold after the first transfer by the artist. The right only applies to resale “in the course of a business of dealing in works of art”, such as resale by galleries and art dealers.

Consistent with what was agreed under the UK FTA, the EU FTA provides that NZ will establish an artists’ resale rights regime that aligns with the EU regime.

While the UK has had an artists’ resale rights scheme in place since 2006, New Zealand does not have the same. However, it is not an entirely new concept. Formal discussions and lobbying for an artists’ resale royalty scheme in New Zealand date back to as early as 2007, and an amendment to the Copyright Act was introduced in 2008, but later dropped.

Historically, artists’ resale rights can be traced all the way back to the 1920’s in France, when they arose out of necessity due to artists living in poverty while dealers profited off the sale of their works. More than 50 countries now have resale royalty schemes, which provide financial benefits to artists.

An agreement in principle to introduce a resale royalty scheme will be promising news for kiwi artists. Not only should it lead to the development of a formal resale royalty scheme in New Zealand at last, but it also means royalties could be reciprocated if New Zealand art is bought and sold in other countries with equivalent schemes.