Office Sotheby's London
Source: artinfo.ru

Despite record the results of the June auction in London, many in the British art community are worried that not had time to begin a "golden era" may soon end.

The following year, Britain will have to enter into force on the pan-European law on the right route, which operates in the EU since 2006. Under this law, if the work is now living or recently deceased artist's resale market, the artist or his heirs are entitled to a share of the profits.

«It is impossible to estimate precisely the impact of the measure, but I think its further spread is absolutely not necessary", - said Matthew Girling, President of Bonhams Europe, in an interview with ARTINFO.

history of the law on the right route has its roots in the 1920s: then it became something of a social program for the rest of destitute widows and artists' families, who died in the First World War. Europeans in relation to this law are positive examples of such stories, Jean-Francois Millet, whose heirs in search of work had to sell flowers on the streets of Paris, while the artist left behind millions in city area the auction house.

After the EU was that the nine participating countries already have a law on the right route, and six - no. Faced with the law caused by the difference in economic imbalances, the EU had to choose: or pass this law everywhere, or anywhere to cancel it. Since the law is much easier to take than to abolish, was selected the first solution to the problem.

entry into force of the law has been divided into two stages: in 2006, still alive artists throughout the European Union began to receive royalties from the resale of their works. However, in countries where the right of succession to it was not working (among them - Britain, Ireland, Austria), has been postponed entry into force of the second part of the law relating to interest payments heirs of artists who have died in the last 70 years.

Act on the right route, which is so feared in the UK, sets the amount of payment vary depending on the value of work. With the price of auctioned from 1000 euro 50 000 euro 4%of revenues owed to the artist (or his heirs), but the higher price of the above, the percentage of the artist (heirs) less. It is reduced to 0.25%if the value of above 500 000 euro. However, the payment amount can not exceed 12 500 euros.

Although the law on the right route from the start was greeted with hostility by professionals of the art market, yet with the version of 2006 to some extent, they still could be reconciled . According to a study conducted by Doctor of Economics from Dublin, Clare MakEndryus (Dr. Clare McAndrews), law, and its entry into full force, will affect about 60%of transactions in the market: 13%will be share by living authors, 47%- the share of the heirs of deceased artists. As long as payments are concerned only sale of contemporary art, but with the coming into force of the second half of the law and the situation will change in the sector of modern artists, many of whom died later established in the law of the watershed - in 1942. Thus, the law is likely to affect almost half of all sales of works of art, committed in Britain.

The new law will certainly affect the auction houses, but the most serious damage threatened by independent dealers and small galleries, which range not as wide as the big companies that sell works of art. The attack on the art market, with high probability, impact on adjacent areas such as tourism. Due to the fact that the damage may be incurred by several industries, the British Art Market Federation (British Art Market Federation), headed by Anthony Browne is trying on behalf of the art community to persuade the government to change legislation before the new 2012.

hope for concessions from the EU is still warm. MakEndryus Claire finds that although the total abolition of legislation would be unlikely, the Commission has already indicated a detrimental impact on the economy right route, which is probably the first step towards a more balanced solution. "Officials at least begin to understand that it's not that simple," - the economist said, drawing a parallel with the situation in Paris, the 50's, when, due to a significant increase in taxes the largest representatives of the art market have been forced to leave the country.

Well, wait and see. Todd Levin, a New York consultant on art, does not consider that the entry into force of European law will cause a large outflow of capital overseas. Above all, Levin believes that fixed the maximum deductions - 12500 euro - the big players did not suffer. "This not such a big amount to worry about it ", - says the expert. Levin recalled that in the major auction houses even work exhibited at the Contemporary Art day auction, bringing the five-six-figure sum." I understand that economists are looking at it solely in the context of the dollars and cents, and so I think they do not fully understand the logic of the collectors "- believes Levin.

At the same time, a resident of the EU cheaper to pay the interest on the law on the right route than to spend money on insurance and transportation, even relatively low-cost operation in a country where the law is on the right route is not valid, for example, in the U.S., Switzerland and China.

And yet, even if laid charges under the law will not cause damage to the art business in the British capital, remain of the collection and distribution of huge money in their entirety. Collecting royalties differently organized in different countries. In some there is an extensive network of collection agencies in collection of funds and then transferring them artists or their heirs, and in others to rely on the sellers. If the agency involved in collecting money, it often takes 12 to 30%commission from the artist or his heirs.

Average price Work on the last afternoon trading Contemporary Art Sotheby's totaled about 113 thousand pounds (162,000 dollars). All of these works was 202, which means that by law the right following the auction house to list two hundred recipients of hundreds of thousands of euros - and it's up to only some trades.

In the U.S., such a law is valid only in one state - in California, and there are already fully tasted the problems associated with finding people that are owed payments. In 2009, the Wall Street Journal published an article about Patricia Milich (Patricia Milich), serving as the Council on the art of California, whose duty is to search for artists who are owed payment. One day she had five months to look for an artist to give him $ 80 dollars.

Percent of Europe in the global art market falls for many years and this, in general, has nothing to do with the law on the right route. There are many factors implicated: the rapid growth of Chinese economy, and the concentration Capital in New York, and the inertial economics EU. Continental Europe in recent years faced serious structural problems in the economy that is being widely discussed in the press. Perhaps the cornerstone is to put this very question, and excitement about the new law - only a consequence of the general unstable economic background?

Prepared Estrova Maria, AI

Source: < /strong> artinvestment.ru