By Leo Gasteen
The European Court of Justice (ECJ) has ruled against Spain in a legal dispute over claims to the IP royalties of Savaldor Dalí’s artwork. In its ruling the ECJ upheld French law which entitles members of the painter’s family the royalty payments from resale in France.
Resale right is an intellectual property right which allows the author, and those entitled under him, to receive a royalty based on the sale price obtained for any resale of one of his works subsequent to its first transfer. That right benefits the author throughout his life and, thereafter, those entitled under him for 70 years after his death.
Salvador Dalí died on 23 January 1989 in Spain, leaving five heirs at law, who were family members. In addition, by his will, Salvador Dalí established the Spanish State as sole legatee over his intellectual property rights. However, the French law in question (Directive 2001/84/EC) limits the beneficiaries of that resale right after the death of the artist to his heirs and excludes all legatees. The artist cannot therefore bequeath that right by will.
In its ruling, the ECJ highlighted that individual member states are free to determine the categories of persons capable of benefiting from the resale right after the death of the author of a work of art.
As such, the ECJ ruled that the French State is free to determine the beneficiaries from the re-sale of Dali’s art work in France.
Background
The ruling follows a legal battle between Fundación Gala-Salvador Dalí and Visual Entidad de Gestión de Artistas Plásticos (VEGAP), and Société des auteurs dans les arts graphiques et plastiques (ADAGP).
worldwide mandate to manage collectively and exercise copyright over the works of Salvador Dalí. VEGAP has, in addition, a contract with its French counterpart, ADAGP, which is responsible for the management of Salvador Dalís copyright in France.
Since then, ADAGP has collected amounts in respect of the exploitation of Salvador Dalís works, which were transferred by VEGAP to the Fundación Gala Salvador Dalí, with the exception of those in respect of the resale right. Pursuant to French legislation, ADAGP paid the amounts in respect of the resale right directly to Salvador Dalís heirs.
Taking the view that, under Salvador Dalís will and Spanish law, the royalties levied upon sales at auction of the artists works in France should be paid to it, the Fundación Gala-Salvador Dalí and VEGAP summonsed ADAGP before the Tribunale de Grande Instance de Paris (Paris Regional Court) for payment of those royalties. In the course of those proceedings, the French court referred to the Court of Justice the question whether Directive 2001/84 precludes a provision of national law which reserves the benefit of the resale right solely to the artists heirs, to the exclusion of testamentary legatees.
The European Courts of Justice – Justice and Application – Full Text
