American Royalties Too Act of 2025

Bill Number

H.R. 4017

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Commerce

Status

Introduced

Latest Action

2025-06-17: Referred to the House Committee on the Judiciary.

Last Updated

2026-01-08T09:06:46Z

AI-Generated Summary

Purpose of the Legislation

The American Royalties Too Act of 2025 aims to strengthen copyright protections for visual artists by introducing a system for resale royalties. This ensures that creators of visual art receive a portion of the proceeds from future sales of their work, addressing a gap in current U.S. copyright law where artists do not benefit from resales after the initial sale.

Key Provisions

• Resale Royalty Entitlement (New Section 106B in Title 17, U.S. Code):
• Visual artists are entitled to a royalty on the commercial resale of their work if the sale price is $5,000 or more and involves an "art market professional" (e.g., galleries, auction houses, or dealers buying/selling art to the public).
• The royalty is the lesser of 5% of the sale price or $50,000 (adjusted annually for inflation starting in 2022 using a cost-of-living index tied to the Internal Revenue Code).
• Applies to "resale copies" (original or limited-edition physical embodiments of the artwork) and lasts for the full duration of the copyright term.
• Royalties cannot be sold, assigned, waived, or transferred.

• Collection and Distribution Process:
• Art market professionals must pay the royalty to designated "visual artists' collecting societies" (non-profit entities approved by the U.S. Copyright Office) within 90 days of the buyer's final payment.
• Collecting societies distribute royalties quarterly to eligible authors (U.S. citizens/domiciliaries, those from countries with similar laws, or works first created in such places) or their successors, after deducting reasonable administrative costs.
• For deceased artists, royalties pass via will or, if none, to surviving spouses (full or half share), children/grandchildren (equal shares), or are extinguished if no heirs exist. Joint works are split equally among co-authors or their heirs.

• Handling Unclaimed Royalties:
• Societies hold unclaimed funds in an interest-bearing escrow for up to 3 years while searching for heirs.
• After 3 years, funds go to the U.S. Copyright Office to support artist programs and education.

• Enforcement and Remedies:
• Societies can sue non-paying professionals for the royalty plus attorney fees; if they don't act within a year, artists/heirs can sue for triple damages plus fees within three years.
• Artists/heirs can sue societies for distribution failures, also for triple damages plus fees.
• These are the exclusive legal remedies for non-payment or non-distribution.

• Administration and Oversight:
• The Register of Copyrights (head of the U.S. Copyright Office) designates collecting societies based on experience in art licensing or fund management, sets rules for expenses and information sharing (e.g., sale details), and can revoke designations for poor performance.
• If no qualified society exists, the Register can appoint a close alternative or create a new collection method via regulations.

• Notice of Copyright Exemption:
• Amends Section 401 to exempt visual artworks from formal copyright notice requirements (e.g., no need for © symbol on the work itself).

• Study and Effective Date:
• Requires the Register of Copyrights to study the law's implementation and report findings/recommendations to Congress within 5 years.
• Takes effect one year after enactment.

Significant Changes to Existing Law

• Introduces a new, non-waivable right to resale royalties in U.S. copyright law (Title 17), which previously provided no such mechanism for visual artists after the first sale (under the "first sale doctrine" in Section 109, allowing resale without royalties).
• Removes the need for copyright notices on visual art, simplifying protection compared to other works like books or music.
• Creates a regulatory framework for collecting societies, similar to those for music royalties but tailored to visual art, without prior U.S. equivalent.

Potential Impacts

• On Government Agencies: The U.S. Copyright Office gains new responsibilities for designating societies, issuing regulations, handling unclaimed funds for artist support, and conducting studies, potentially increasing administrative workload and budget needs.
• On Citizens: Visual artists and heirs may gain ongoing income from resales, supporting livelihoods and encouraging creation; however, art buyers and sellers could face higher costs or paperwork.
• On International Relations: Aligns U.S. law with countries like France and the UK that have resale royalties (via the Berne Convention's optional provisions), potentially benefiting U.S. artists abroad and fostering reciprocity, but may complicate trade for international art dealers without similar systems.

Main Stakeholders Affected

• Visual Artists and Heirs: Primary beneficiaries, gaining financial rights from resales.
• Art Market Professionals: Galleries, auction houses, and dealers must collect and pay royalties, increasing operational costs and compliance burdens.
• Visual Artists' Collecting Societies: New entities (or existing ones like artist rights groups) tasked with administration, distribution, and transparency.
• U.S. Copyright Office: Oversees implementation, designations, and studies.
• Art Buyers and Collectors: Indirectly affected through potentially higher prices due to added royalty costs.
• Joint Authors and Estates: Specific rules for sharing and inheritance could simplify or complicate estate planning.

Notable Legal, Constitutional, or Political Implications

• Legal: Establishes resale royalties as an independent right alongside existing copyright exclusives (e.g., reproduction, distribution), enforceable in federal courts with treble damages to deter violations. Defines key terms narrowly to avoid broad application, but may lead to litigation over "art market professionals" or eligibility.
• Constitutional: Supports the U.S. Constitution's Intellectual Property Clause (Article I, Section 8) by promoting artists' progress in the arts through economic incentives, without directly challenging free speech or property rights.
• Political: Represents a policy shift toward artist equity in a market where resales can yield high profits (e.g., at auctions), potentially sparking debate on government intervention in private sales versus cultural support; the 5-year study allows for future adjustments based on real-world effects.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Nadler, Jerrold [D-NY-12]

Cosponsors (2)

Rep. Chu, Judy [D-CA-28], Rep. Ross, Deborah K. [D-NC-2]

Recent Actions

• 2025-06-17: Referred to the House Committee on the Judiciary.
• 2025-06-17: Introduced in House
• 2025-06-17: Introduced in House

Bill Versions

• American Royalties Too Act of 2025 — issued 2025-06-17 — PDF (14 pages)