Do you know what Resale Royalty Rights (Droit de Suite) are?

Source: Brazilian Law No. 9.610/98 | Art. 38 Resale Royalty Right (“Droit de Suite” in French)

In the contemporary art market, the appreciation of an artwork is a continuous process that extends far beyond its first sale (Primary Market). To ensure that the artist participates in this economic success and, above all, to maintain the integrity of the artwork’s Chain of Custody, there is the Resale Royalty Right (or Droit de Suite). This right is established by law and creates a legal obligation for any reseller during the secondary sale of an artwork.

Definition and History

The Resale Royalty Right is a property right that allows visual artists to share in the profit generated by the subsequent sales of their work. First recognized in France in 1920, it was later incorporated into the Berne Convention (Article 14bis) and is currently in force in over 70 countries, including Brazil and the entire European Union. Source: Notarial College of Brazil | São Paulo Section

What does the Law say in Brazil?

In Brazil, this right is guaranteed by the Copyright Law (Law No. 9.610/98), under Article 38. The legislation establishes that the author has an irrevocable and inalienable right to receive a minimum of 5% over the price increase (capital gains) verified in each resale of an original artwork or manuscript they have previously sold.

“Art. 38. The author has the unrenounceable and inalienable right to receive a minimum of five percent of the increase in price that may be verifiable in each resale of an original work of art or manuscript that he has alienated. Sole Paragraph: Should the author not receive his resale royalty at the time of the resale, the seller is considered the depositary of the amount due to him, except when the operation is carried out by an auctioneer, in which case the latter shall be the depositary.”

This mechanism is not merely financial compensation for the creator; it is a fundamental pillar for the health and transparency of the Secondary Art Market. To avoid future discussion about capital gains, we recommend our curated artists, to define in the initial purchase and selling contract (primary sale of the artwork) the applicable percentage of the “Droit de suite” (5%, 10% or other) and to contractually define that it will be applied on the gross selling price backed by a formal invoice.

The Importance of Historical Price Records

In Brazil, cases where the resale royalty is actually observed by resellers are rare, primarily due to a lack of awareness and the absence of a public registry for historical transaction prices.

The Importance of Ownership Certificate Updates

Many collectors view the payment of the Resale Royalty as just a fee during the resale process. However, from an Auditing and Provenance perspective, it is the key to investment security. Within the @RAMOS.ART ecosystem, updating the certificate of authenticity (CoA) in every transaction is vital for three reasons:

1. Guarantee of Origin (Provenance): By registering the resale and processing the droit de suite, the new owner receives a new Certificate of Authenticity and Ownership, issued directly by the living artist in their name. This eliminates any doubt regarding authenticity and formalizes the transfer of title between seller and buyer. All certificates are registered in our private blockchain, through cryptographic custody.

2. Consolidation of Market Value: Each validated transaction updates the “market quote” of the artwork in our public database. An artwork with an audited and registered transaction history holds a significantly higher market value than a piece of obscure origin or without a record of succession.

3. Legal Security: Transaction registration protects both the seller and the buyer against fraud, ensuring the artwork is free of encumbrances and follows international art market compliance standards.

Conclusion: A Value-Driven Ecosystem

For the collector, keeping the certificate updated and respecting the Resale Royalty Right is not just about legal compliance—it is about shielding your assets. A @RAMOS.ART piece with complete provenance and successive digitally signed certificates (via Gov.br or Blockchain) is an auditable financial asset with global recognition and prestige.

Author: César Ramos (ESRAC)