,i  #aacth ,,congress  #b;d ,session    
,h4 ,r4 #dajc  ,,in ,,the ,,house ,,of  
,,representatives  ,february #bf1 #bjad 
,mr4 ,nadler introduced the following   
bill2 which was referred to the         
,committee on the ,judiciary  ,a ,,bill 
,to amend title #ag1 ,united ,states    
,code1 to secure the rights of visual   
artists to copyright1 to provide for    
resale royalties1 and for other         
purposes4  #a4 ,short title ,this ,act  
may be cited as the ,american ,royalties
 ,too ,act of #bjad4  #b4 ,definitions  
,section #aja of title #ag1 ,united     
,states ,code1 is amended--  7#a7 by    
inserting after the definition of       
architectural work the following3  ,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          
#a1jjj1jjj of works of visual art during
 the previous year4 2  7#b7 by inserting
 after the definition of ,pictorial1    
graphic1 and sculptural works the       

following3  ,for purposes of section    
#ajf7;b71 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 work4 2  7#c7 by        
inserting after the definition of       
registration the following3  ,for       
purposes of sections #ajf7;b7 and       
#gja7;b77#e71 sale means transfer of    
ownership or physical possession of a   
work of visual art as the result of the 
auction of that work4 2 and  7#d7 in the
 definition of work of visual art1 by   
striking ,a work of visual art is-- and 
all that follows through by the author4 
and inserting the following3 ,a work of 
visual art is a painting1 drawing1      
print1 sculpture1 or photograph1        
existing either in the original         
embodiment or in a limited edition of   
#bjj copies or fewer that bear the      
signature or other identifying mark of  
the author and are consecutively        
numbered by the author1 or1 in the case 

of a sculpture1 in multiple cast1       
carved1 or fabricated sculptures of #bjj
 or fewer that are consecutively        
numbered by the author and bear the     
signature or other identifying mark of  
the author44  #c4 ,exclusive rights     
,section #ajf of title #ag1 ,united     
,states ,code1 is amended--  7#a7 by    
inserting 7a7 ,in general4-- before     
,subject to sections #ajg through #abb2 
7#b7 in paragraph 7#e71 by striking and 
at the end2  7#c7 in paragraph 7#f71 by 
striking the period at the end and      
inserting 2 and2 and  7#d7 by adding at 
the end the following3  7#g7 in the case
 of a work of visual art1 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   
#e1jjj as the result of an auction4  7b7
 ,collection of royalty  7#a7 ,in       
general ,the collection of a royalty    
under subsection 7a77#g7 shall be       
conducted in accordance with this       
subsection4  7#b7 ,calculation of       

royalty  7,a7 ,in general ,the royalty  
shall be an amount equal to the lesser  
of--  7i7 #e percent of the price paid  
for the work of visual art2 or  7ii7    
#ce1jjj4  7,b7 ,adjustment of amount ,in
 #bjae and each year thereafter1 the    
dollar amount described in subparagraph 
7,a77ii7 shall be increased by an amount
 equal to the product of--  7i7 that    
dollar amount2 and  7ii7 the            
cost-of-living adjustment determined    
under section #a7;f77#c7 of the         
,internal ,revenue ,code of #aihf for   
the year1 determined by substituting    
calender year #bjae for calendar year   
#aiib in subparagraph 7,b7 thereof4     
7#c7 ,collection of royalty  7,a7       
,collection ,not later than #ij days    
after the date on which the auction     
occurs1 the entity that conducts the    
auction shall--  7i7 collect the        
royalty2 and  7ii7 pay the royalty to a 
visual artists' copyright collecting    
society4  7,b7 ,distribution ,not fewer 
than #d times each year1 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--
  7i7 the net royalty attributable to   
the sales of the author2 and  7ii7 the  
reasonable administrative expenses of   
the collecting society as determined by 
regulations issued under section        
#gja7;b77#e74  7#d7 ,failure to pay     
royalty ,failure to pay a royalty       
provided for under this subsection      
shall--  7,a7 constitute an infringement
 of copyright2 and  7,b7 be subject to--
  7i7 the payment of statutory damages  
under section #ejd7;c72 and  7ii7       
liability for payment of the full       
royalty due4  7#e7 ,right to collect    
royalty ,the right to collect a royalty 
under this subsection may not be sold1  
assigned1 or waived except as provided  
in section #bja4  7#f7 ,eligibility to  
receive royalty payment ,the royalty    
shall be paid to--  7,a7 any author of a
 work of visual art--  7i7 who is a     

citizen of or domiciled in the ,united  
,states2  7ii7 who is a citizen of or   
domiciled in a country that provides    
resale royalty rights2 or  7iii7 whose  
work of visual art is first created in  
the ,united ,states or in a country that
 provides resale royalty rights2 or     
7,b7 the successor as copyright owner of
 an author described in subparagraph    
7,a74  4  #d4 ,notice of copyright      
,section #dja of title #ag1 ,united     
,states ,code1 is amended by adding at  
the end the following3  7e7             
,non-,applicability to works of visual  
art ,the provisions of this section     
shall not apply to a work of visual art4
  4  #e4 ,copyright office ,section     
#gja7;b7 of title #ag1 ,united ,states  
,code1 is amended by--  7#a7            
redesignating paragraph 7#e7 as         
paragraph 7#f72 and  7#b7 inserting     
after paragraph 7#d7 the following3     
7#e7 ,issue regulations governing visual
 artists' copyright collecting societies
 described in section #ajf1 that--  7,a7

 establish a process by which an entity 
is determined to be and designated as a 
visual artists' copyright collecting    
society1 that--  7i7 requires that a    
visual artists' copyright collecting    
society authorized to administer royalty
 collections and distributions under    
this title shall--  7,i7 have prior     
experience in licensing the copyrights  
of authors of works of visual art in the
 ,united ,states2 or  7,,ii7 have been  
authorized by not fewer than #aj1jjj    
authors of works of visual art1 either  
directly or through reciprocal          
agreements with foreign collecting      
societies1 to license the rights granted
 under section #ajf2 and  7ii7 prohibits
 an entity from being designated as a   
visual artists' copyright collecting    
society if1 during a period of not less 
than #e years that begins after the date
 on which the entity is designated as a 
visual artists' copyright collecting    
society1 the entity does not distribute 
directly to each author1 or to the      

successor as copyright owner of each    
author1 the amount of the royalties     
required to be distributed under section
 #ajf7;b77#c77;,b72  7,b7 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   
#ajf7;b77#c72 and  7,c7 establish a     
process by which--  7i7 not less        
frequently than annually1 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 society2 and  7ii7 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 7i7    
that relates to a sale of a work of     
visual art by the author1 including the 
amount of any royalty paid to the       

collecting society on behalf of the     
author4  4  #f4 ,study required ,not    
later than #e years after the date of   
enactment of this ,act1 the ,register of
 ,copyrights shall--  7#a7 conduct a    
study on--  7,a7 the effects1 if any1 of
 the implementation of this ,act1 and   
the amendments made by this ,act1 on the
 art market in the ,united ,states2 and 
7,b7 whether the provisions of this     
,act1 and the amendments made by this   
,act1 should be expanded to cover       
dealers1 galleries1 or other            
professionals engaged in the sale of    
works of visual art2 and  7#b7 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 7#a71 including  
any recommendations for legislation4    
#g4 ,effective date ,this ,act and the  
amendments made by this ,act shall take 
effect on the date that is #a year after
 the date of enactment of this ,act4