This article is Part 2 of our three-part series on the Copyright Bill and focuses on the proposed Artist’s Resale Right for fine arts, a statutory mechanism that would give creators a continuing royalty on qualifying secondary-market sales and reshape obligations for galleries, auction houses, and collectors

2. Artist’s Resale Right (“ARR”) for Fine Arts

Another significant development is the proposed introduction of an ARR for visual arts. This concept grants artists a non-alienable entitlement to a royalty when original fine art works are resold, provided that certain conditions are met, including minimum resale price and transaction involvement of professional intermediaries. 

Key insights:

• ARR introduces an ongoing economic right for visual artists that extends beyond the initial sale, addressing historic concerns that artists often miss out on economic gains when their works appreciate in value over time.
• This echoes international practices (e.g., droit de suite in several European Union nations) designed to promote fairness in secondary art markets.
• Royalties are calculated as a percentage of the resale price, with maximum royalty caps, and are to be collected through a collective management organization (Lembaga Manajemen Kolektif).

Practical implications for businesses and creators:

• Art market participants, including galleries and auction houses, may need to adjust transaction structures and compliance processes to accommodate ARR obligations.
• For artists, ARR represents a significant expansion of statutory protection into an area that has historically relied on private contractual arrangements.

If you would like to discuss how ARR may affect your artists, collections, transaction processes, or compliance obligations, please reach out to us at mail@bagusenrico.com.

Part 3 will be published on 20 February 2026 and will examine the Bill’s recognition of smart contracts as enforceable IP-licensing instruments.