
Monaco has taken a significant step towards aligning its art market with European standards and boosting its appeal through the enactment of Law n°1.526 and the subsequent clarification provided by Sovereign Order n°10.300, announced on 22 December 2023. This reform aims to modernize the resale right, benefiting both Monegasque and foreign authors who meet specific residency or nationality criteria, thus fostering a more vibrant cultural economy within the Principality.
Clarifications and Amendments
The introduction of Sovereign Order n°10.300 brings crucial clarifications and amendments to Monaco’s resale right regulations. Notably, the resale right now applies solely to VAT-subjected sales exceeding €750, with exemptions under certain conditions to encourage the circulation of artworks. Moreover, the Order stipulates stricter requirements for art market professionals, ensuring authors receive their rightful share from subsequent sales, and outlines the prerequisites for collective management organizations authorized to collect these rights on behalf of authors.
Collective Management Organizations
Central to the reform is the provision for collective management organizations, authorized by the Minister of State, to oversee the collection and distribution of resale rights. These entities play a pivotal role in safeguarding authors’ interests, requiring them to demonstrate professional competence, the ability to inform rightsholders, and uphold integrity. The regulation also accommodates organizations based outside Monaco, provided they appoint a locally domiciled representative, thereby expanding the scope for international collaboration in rights management.
Implications for the Art Market
This legislative reform, culminating in Sovereign Order n°10.300, marks a significant advancement in Monaco’s commitment to enhancing the attractiveness of its art market while ensuring fair compensation for creators. By aligning with European standards and introducing clear, enforceable guidelines for resale rights, Monaco positions itself as a competitive and reputable hub for art trade. This development not only benefits authors but also contributes to a transparent, dynamic market ecosystem that attracts buyers, sellers, and collectors worldwide.
The Sovereign Order of 5 January 2024 further underlines Monaco’s dedication to reinforcing authors’ rights and modernizing intellectual property regulations. Together with the bill of law n°1045, these initiatives signify a broader effort to recognize and regulate the ownership of intellectual works, fostering a culture of innovation and creativity in the Principality.