Mexico: Decree establishing the Rate Schedule for payment of Royalties for the resale of original works of art

In brief

On 19 January 2023, the Decree that establishes the Rate Schedule for the payment of Royalties for the resale of original works of art, promoted by the Collective Management Organization "Sociedad Mexicana de Autores de las Artes Plasticas, Sociedad de Gestión Colectiva de Interes Público" ("SMAAP") was published in the Mexico Federal Official Gazette ("DOF"). This Rate Schedule aims to promote greater transparency in the art market and to guarantee a fair compensation and retribution for all plastic and visual authors.

The Rate Schedule will benefit any artist, even if the artist is not a member of the SMAAP, by receiving a compensatory remuneration derived from the profits generated from the exploitation of the use and resale of the plastic and visual works of art generated in the Art Galleries, brokers of fine and decorative art, auction establishments or commercial agents operating in Mexico.


Contents

Key takeaways

  • The Rate Schedule will be applicable to the resale of all original works of art and reproductions numbered and signed by the plastic or visual artist.
  • Brokers of fine and decorative art, owners of establishments or commercial agents participating in the resale of art will be obliged to retain and keep in deposit the amount of the author's Royalties of the price of the resold work until delivered to the author, the author's assignee or to the collective management organization, and to notify the author or the author's assignee and the collective management organization about the resale within two months after the resale.
  • The authors, assignees and collective management organizations should enter into agreements or arrangements with galleries, brokers, auction houses, commercial agents and art dealers in general, to facilitate the information and collection of the Royalties.
  • The Rate Schedule for the payment of Royalties varies between 4% to 1.5% of the price of the artwork, depending on the sale price, without taxes or any other deduction. 

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