,,ii  #aaeth ,,congress  #b;d ,session  
,s4 #cdhh  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,september #be1
 #bjah,mr4 ,hatch 7for himself and ,mr4 
,leahy7 introduced the following bill2  
which was read twice and 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 #bjah4  #b4 ,definition   
,section #aja of title #ag1 ,united     
,states ,code1 is amended by inserting  
after the definition of architectural   
work the following3  ,an auction is a   
public sale at which a copy of a work of
 visual art is sold to the highest      
bidder and which is run by a person that
 sold not less than #a1jjj1jjj of copies
 of works of visual art during the      
previous year4 ,a person that conducts  
all sales exclusively online does not   

conduct an #8auction' for purposes of   
this title4 4  #c4 ,exclusive rights    
7a7 ,exclusive rights in copyrighted    
works ,section #ajf of title #ag1       
,united ,states ,code1 is amended-- 7#a7
 in paragraph 7#e71 by striking and at  
the end2  7#b7 in paragraph 7#f71 by    
striking the period at the end and      
inserting 2 and2 and  7#c7 by adding at 
the end the following3  7#g7 in the case
 of a work of visual art1 to collect a  
royalty for the sale of a copy of the   
work if the copy is sold by a person    
other than the author of the work or1 if
 applicable1 the author's successor as  
copyright owner for a price of not less 
than #e1jjj as the result of an auction4
  4  7b7 ,collection of resale royalty  
for visual art  7#a7 ,in general        
,chapter #a of title #ag1 ,united       
,states ,code1 is amended by inserting  
after section #ajf;,a the following3    
#ajf;,b4 ,collection of resale royalty  
for visual art  7a7 ,definitions ,in    
this section-- 7#a7 the term price means

 the aggregate of all installments paid 
in cash or in-kind by or on behalf of a 
purchaser for a copy of a work of visual
 art sold as the result of the auction  
of that copy2 and  7#b7 the term sale   
means a transfer of ownership of a copy 
of a work of visual art as the result of
 the auction of that copy4  7b7         
,collection generally ,the collection of
 a royalty under section #ajf7g7 shall  
be conducted in accordance with this    
section4  7c7 ,calculation of royalty   
7#a7 ,in general ,the royalty shall be  
an amount equal to the lesser of-- 7,a7 
#e percent of the price of the copy of  
the work of visual art as sold at       
auction2 or  7,b7 #ce1jjj4  7#b7        
,adjustment of amount ,in #bjai and each
 year thereafter1 the dollar amount     
described in paragraph 7#a77;,b7 shall  
be increased by an amount equal to the  
product of--  7,a7 that dollar amount2  
and  7,b7 the cost-of-living adjustment 
determined under section #a7;f77#c77;,a7
 of the ,internal ,revenue ,code of     

#aihf for the year1 determined by       
substituting the ,c-,,cpi-,u for        
calendar year #bjag for the ,,cpi for   
calendar year #bjaf and all that follows
 in clause 7ii7 of that section4  7#c7  
,joint works ,in the case of a work of  
visual art that is a joint work1 each   
author of the work or1 if applicable1   
author's successor as copyright owner   
shall be entitled to an equal share of  
any royalty for the sale of a copy of   
the work4  7d7 ,collection and payment  
of royalty  7#a7 ,collection ,not later 
than #ij days after the date on which   
the final payment of the price of the   
copy of the work is made1 the person    
that conducts the auction shall pay the 
resale royalty calculated under         
subsection 7c7 to a visual artists'     
copyright collecting society designated 
by the ,register of ,copyrights under   
subsection 7h74  7#b7 ,distribution ,not
 fewer than #d times each year1 a visual
 artists' copyright collecting society  
to which payments are made under        

paragraph 7#a7 shall distribute to the  
author or the author's successor as     
copyright owner an amount equal to the  
difference between--  7,a7 all royalties
 attributable to the sales of copies of 
works by the author2 and  7,b7 the      
reasonable administrative expenses of   
the collecting society as determined by 
regulations issued under subsection 7h74
  7#c7 ,unclaimed royalties  7,a7       
,escrow ,subject to subparagraph 7,b71  
if1 after a good faith effort1 a visual 
artists' copyright collecting society is
 not able to make a timely distribution 
under paragraph 7#b7 because the        
copyright collecting society is unable  
to locate the author or author's        
successor as copyright owner1 the       
copyright collecting society shall--    
7i7 deposit the amount that would have  
been distributed to the author or       
author's successor as copyright owner   
into an interest-bearing escrow account 
until the author or author's successor  
as copyright owner has been identified  

and located2 and  7ii7 upon locating the
 author or author's successor as        
copyright owner1 distribute the amount  
described in clause 7i71 including      
interest1 to the author or author's     
successor as copyright owner4  7,b7     
,transfer ,if the author or author's    
successor as copyright owner of a work  
of visual art is not identified and     
located during the #c-year period       
beginning on the date on which the sale 
of the copy of the work of visual art   
occurs1 the amount that would have been 
distributed to the author or author's   
successor as copyright owner under      
paragraph 7#b7 shall be transferred to  
the ,copyright ,office for the purposes 
of developing and conducting programs1  
symposia1 and education initiatives in  
support of artists in the ,united       
,states4  7#d7 ,administration ,a visual
 artists' copyright collecting society  
shall administer all amounts collected  
under this subsection in accordance with
 generally accepted accounting          

principles4  7e7 ,failure ,to pay       
royalty  7#a7 ,right of action ,except  
as provided in paragraph 7#b71 if a     
person fails to pay or distribute a     
royalty in accordance with subsection   
7d71 the person to which the royalty is 
due may bring an action in an           
appropriate district court of the       
,united ,states to recover either--     
7,a7 the amount of the royalty2 or  7,b7
 statutory damages in an amount         
available under section #ejd7;c74  7#b7 
,exception  7,a7 ,in general ,except as 
provided in subparagraph 7,b71 a person 
shall not be liable in an action brought
 against the person under paragraph 7#a7
 if1 not later than #fj days after the  
date on which the royalty was due1 the  
person pays or distributes an amount    
equal to the sum of--  7i7 the royalty  
due2 and  7ii7 a late fee determined in 
accordance with appropriate regulations 
as may be promulgated by the ,register  
of ,copyrights4  7,b7 ,willful or       
repeated failure to pay ,subparagraph   

7,a7 shall not apply if the failure of  
the person to pay or distribute a       
royalty in accordance with subsection   
7d7 was willful or repeated4  7#c7      
,exclusive remedies ,the remedies       
provided under this subsection shall be 
the exclusive remedies for a failure to 
pay or distribute a royalty in          
accordance with subsection 7d74  7f7    
,transfer of right ,the right to collect
 a royalty under this section may not be
 sold1 assigned1 or otherwise           
transferred or waived except as provided
 in section #bja4  7g7 ,eligibility ,to 
receive royalty payment ,a visual       
artists' copyright collecting society   
that collects a royalty under this      
section for the sale of a copy of a work
 of visual art shall distribute the     
royalty to--  7#a7 any author of a work 
of visual art-- 7,a7 who is a citizen of
 or domiciled in the ,united ,states2   
7,b7 who is a citizen of or domiciled in
 a country that provides a royalty for  
the resale of a copy of a work of visual

 art2 or  7,c7 whose work of visual art 
is first created in the ,united ,states 
or in a country that provides a royalty 
for the resale of a copy of a work of   
visual art2 or  7#b7 the successor as   
copyright owner of an author described  
in paragraph 7#a74  7h7 ,regulations    
,the ,register of ,copyrights shall     
issue regulations governing visual      
artists' copyright collecting societies 
described in this section1 including    
regulations that--  7#a7 establish a    
process by which a person is determined 
to be and designated as a visual        
artists' copyright collecting society1  
which process shall--  7,a7 require a   
visual artists' copyright collecting    
society authorized to administer royalty
 collections and distributions under    
this title to--  7i7 have prior         
experience in licensing the copyrights  
of authors of works of visual art in the
 ,united ,states2 or  7ii7 have been    
authorized by not fewer than #ejj       
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  7,b7 provide  
that a person shall no longer be        
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      
person is designated as a visual        
artists' copyright collecting society1  
the person 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 subsection 7d72  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
 subsection 7d77#b72 and  7#c7 establish
 a process by which-- 7,a7 not less     
frequently than annually1 a visual      
artists' copyright collecting society   

may obtain from any person that conducts
 auctions a list of each copy of a work 
of visual art sold in those auctions    
that is by an author represented by the 
collecting society2 and  7,b7 an author 
of a work of visual art or1 if          
applicable1 an author's successor as    
copyright owner may obtain from a visual
 artists' copyright collecting society  
any information in the possession of the
 collecting society that relates to a   
sale of a copy of a work of visual art  
by the author1 including the amount of  
any royalty paid to the collecting      
society on behalf of the author or the  
author's successor as copyright owner4  
4  7#b7 ,technical and conforming       
amendment ,the table of sections for    
chapter #a of title #ag1 ,united ,states
 ,code1 is amended by inserting after   
the item relating to section #ajf;,a the
 following3  #ajf;,b4 ,collection of    
resale royalty for visual art4  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 ,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    
copies 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 conducted under paragraph     
7#a71 including any recommendations for 
legislation4  #f4 ,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