French art professionals showed disappointment regarding the extension of royalties for artists and their heirs to the rest of member-countries of the European Community following a decision taken by the EEC commission on April 12th 2000 to grant a 15-year reprieve to Britain in that respect. French auctioneers and dealers said the EEC commission gave too long a respite to Britain. Royalties were granted in France from 1920 enabling any artist, and his heirs during the 70 years following his death, to perceive a 3% commission on the price of any of his works sold at auction.
Most professionals have criticised such kind of right called «droit de suite» in France as it is levied in addition to all commissions perceived on a lot sold at auction. For this reason many collectors of modern and contemporary art rather prefer to sell their works in New York or in London.
The extension of royalties was due to become effective on January 1st 1999 but British Premier Tony Blair opposed such move as the imposition of royalties in Britain would have affected sales of modern works in that country.
Finally the EEC commission found a compromise solution and decided firstly that royalties would not be perceived for works worth under 4000 euros ($ 3823) and secondly that these would have a fixed ceiling of 12,500 euros ($ 12,058) whatever the price fetched at auction.
However, EEC countries have been given a five-year respite to get tuned to the new rates. The EE Commission added that countries where royalties are not yet levied will however be able if they wish to apply them during ten years for works produced by artists still alive. Such decision means that the heirs of dead artists will have to wait another five years to receive royalties.
The EEC recommandation will have to be approved by the European Parliament, which might adopt some new amendments but it is believed that member-countries will be given enough time to make these royalties compulsory, meaning that Britain will not apply them before the year 2015.
More embarrassing is the decision of the EEC Commission to levy royalties for artists and their heirs for works sold in art galleries, which already pay back 0,99 per cent of their annual turnovers to finance the social security system created for artists. A spokesman for French galleries said it was utterly ridiculous to add royalties to this social security duty.
Meanwhile, French auctioneers have seized the supreme court of appeal in an attempt to quash a recent decision by the court of appeal, which granted the right to perceive royalties on the works by Fernand Léger to the children of the daughter of Nadia Léger born from the latter's first marriage. In fact, she had no direct parental link with Léger while the «droit de suite» system, aimed at improving the situation of the real next of kin of an artist, was understood to be destined to his direct heirs only.
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