Authors code extract - Resale Right/Droit de Suite

Section 24

Right to remuneration (droit de suite) in respect of resale of the original of artistic work

(1) If the original of artistic work, which was transferred by its author into the ownership of another person, is further being sold at the purchase price amounting to EUR 1,500 or more and if a gallery-keeper, an auctioneer or another person, who systematically trades in artistic works (hereinafter „trader“) takes part in such sale as a seller, a buyer or a mediator, the author in respect of each resale (further sale) of the work has a right to remuneration (droit de suite) stipulated in the enclosure hereof.

(2) Subject to subsection 1, the person liable to pay the remuneration to the appropriate collective administrator is a seller and a trader jointly and severally. Collective administrator is obligated to enable liable persons to see into the Register pursuant to section 100 (1e).

(3) Subject to and in accordance with subsection 1, original of artistic work is deemed a work of art, particularly a picture, a drawing, a painting, a collage, a sculpture, an engraving, a lithography or other graphics, a photograph, a tapestry, ceramics, glass and author’s jewel provided they are made by the artist himself, or they represent copies that are deemed the original of artistic work. Copies deemed to be the original of artistic work are such copies which were produced in the limited number by the author himself or under his guidance and are numbered, signed or otherwise properly declared as genuine by the artist. Right to remuneration pursuant to subsection 1 does not apply to architectonic works such as construction, works of applied art unless they possess qualifications of the original of artistic work as well as to manuscripts of composers and writers.

(4) Subject to and in accordance with subsection 1, right to remuneration does not apply to the first resale if the seller has gained the original of artistic work directly from the author within the period less than three years before such resale and if the purchase price of the work original does not exceed the amount of EUR 10,000.

(5) For purposes of exercise of the right in accordance with subsection 1 and calculation of the appropriate remuneration, purchase price means price free of value added tax.

(6) Author and collective administrator have a right to get from trader any information, which is necessary to ensure the payment pursuant to subsection 1 for the period of three years from the sale. Trader, who in accordance with subsection 1 takes part in the sale of the original of artistic work, is obligated to give notice of such sale to the appropriate collective administrator at the latest by the end of January of the calendar year following the year, in which the sale took place. Subject to the preceding sentence the notice must contain specifications of the sold originals of artistic works and information of the actual purchase price. The remuneration is payable on the basis of the statement of account submitted by collective administrator within the term which mustn’t be shorter than 30 days unless collective administrator and trader agree otherwise.

Section 96

Rights obligatorily administrated collectively

(1) Obligatorily collectively administrated rights are as follows:

a) right to remuneration for

1. use of artistic performance recorded on a sound record released for business purposes, radio or television broadcasting, a transmission of the radio or television broadcast (sec 72 (1)),

2. use of a sound record released for business purposes, radio or television broadcasting, a transmission of the radio or television broadcast (sec 76 (3)),

3. making of a copy of the work for private use on the basis of a sound record or audio-pictorial record or other record by transmission of its contents by means of a device on a blank medium of such record [sec. 25 (1b), sec. 28 (2), sec. 71 (3), sec. 76 (4) and sec. 80 (3)],

4. making of a copy of the work for private use or for personal internal use of a legal entity or self-employed natural person by means of the device for making of print copies on paper or similar base by the third party as well [sec. 25 (1a), sec. 28 (2), and sec. 87],

5. resale of the original of artistic work (sec.24),

6. renting of the original or the copy of the released work subject to sec. 37 (2),

b) right to reasonable remuneration for hire of the original or a copy of the work or the artist’s performance recorded on a sound or audio-pictorial record,

c) right of use through cable transmission of works, live performances and performances recorded on a sound or audio-pictorial record with the exception of such performances, whose sound record has been released for business purposes [letter a) 1] and further right of use by cable transmission of audio-pictorial records and sound recordings other than released for business purposes [paragraph a) 2]; and further the exception of cases when the right of cable transmission is exercised by the transmitter for his own transmission irrespective of the fact whether these are his own rights or rights, which he exercises on the basis of the licence agreement concluded with the right-holder.

(2) Right-holders are represented by the lawfully authorized collective administrator in order to exercise of the rights subject to subsection 1 as well as to lay claim for damages and handing over of the groundless enrichment of unjustified exercise of such collectively administrated right.

Section 100

Relations of the collective administrator to represented right-holders and to users of the object of protection

(1) Collective administrator is obligated with the care of the proper manager, professionally and within the scope of the granted authorization to

a) represent each right-holder and exercise his rights, which he administrates by operation of law,

b) under regular conditions take over representation of each right-holder and exercise his rights,

c) represent each right-holder and exercise his rights within the mutually agreed scope,

d) represent a right-holder under equal conditions,

e) keep the Register of right-holders represented contractually and the Register of right-holders who applied for registration; the Register may contain only particulars which are necessary for performance of collective administration,

f) keep the Register of objects of protection, whose rights are collectively administrated, in case he is familiar with these objects; the Register may contain only particular which are necessary for collective administration performance,

g) inform the person, who applies in writing, of a fact whether he represents the right-holder to the particular object of protection to exercise a particular right and issue a written confirmation of such fact on request and expenses of the applicant,

h) conclude contracts with users of objects to protection under reasonable and equal conditions,

j) collect for right-holders remunerations and possible income from release of unjustified enrichment in accordance with the Act and contracts stated in paragraph h) and distribute them and pay for them in compliance with clearing rules,

k) keep records of collected remunerations and enable a right-holder to check correctness of the amount of the remuneration paid to him or possible income from unjustified enrichment,

l) set up a reserve fund of collected remunerations,

m) make out a regular financial statement, have it verified by the auditor and submit it with the inclusion of the auditor’s report to the Ministry without unreasonable delay after its verification and approval by the supreme body of the collective administrator,

n) make out Annual Activity and Business Report by 30 June of each year,

o) publish in Commercial bulletin the regular financial statement including the auditor’s report without unreasonable delay after its making out,

p) notify the Ministry of all alterations,

t) notify the Ministry of decisions of courts or other competent bodies in the proceedings, in which collective administrator participates and which has substantial significance for its activity.

(2) Collective administrator represents a right-holder under his name and on his account. Collective administrator performs collective administration with no profit. However, collective administrator is entitled to claim reimbursement of purposefully expended costs.

(3) Users of objects of protection as well as persons obligated to pay special remunerations are obligated to enable collective administrator regular performance of collective administration and not to refuse to provide him with essential information without serious reasons. Collective administrator mustn’t use information found out during checking activities for a purpose other than performance of collective administration. Collective administrator is entitled to check proper and timeous performance of contracts concluded by him during performance of collective administration; users of objects of protection as well as persons obligated to pay special remunerations or other parties to such contracts are obligated to enable collective administrator to perform such activity.

Section 107

Final provisions

(1) The provisions of this Act apply to the works of authors and artistic performance of artists, who are citizens of the Czech Republic, wherever they may be created or published.

(2) Works and artistic performance of foreign citizens and absent nationality persons are subject to the provisions hereof in accordance with the international agreements, by which the Czech Republic is bound and which have been promulgated in the Collection of Laws, and in the case they are absent, where the reciprocity is ensured.