Resale Royalty Right (Droit de Suite) Policy

@ESRAC.ART Resale Royalty Right (Droit de Suite) Policy

Note: This Policy outlines the application of the Resale Royalty Right within the @ESRAC.ART ecosystem, ensuring fairness and transparency for both the artist and collectors.

1. What is the Resale Royalty Right (Droit de Suite)?

The Resale Royalty Right is a legal, perpetual, and non-waivable right that entitles visual artists to receive a percentage of the increase in value whenever their original works are resold.

  • Legal Basis (Brazil): Article 38 of Law No. 9.610/1998.
  • International Context: Similar protections exist globally, such as the EU Directive 2001/84/EC.

2. Key Facts for Collectors

  • Applicability: Applies to all original @ESRAC artworks (paintings, drawings, etc.) resold in the secondary market.
  • Trigger Event: Every resale transaction where there is a capital gain (increase in price).
  • Non-Waiver: This right is a legal obligation and cannot be renounced by contract. It is binding upon the buyer and all future successors.

3. Responsibility for Payment

  • The Seller/Reseller: The person or entity selling the artwork in the secondary market is legally responsible for paying the royalty to the artist.
  • Intermediaries: If the sale occurs via an auction house or gallery, they may act as the depository and facilitate the transfer.
  • Private Sales: In DMs or private negotiations within the @ESRAC.ART network, the seller retains direct responsibility.

4. Calculation Methodology

As an audit-focused platform, @ESRAC.ART applies the following standards:

  • In Brazil: The royalty is 5% of the capital gain (profit) between the previous purchase price (adjusted for inflation) and the new resale price.
  • Global Standard: In jurisdictions without specific resale laws, @ESRAC.ART applies the 5% of capital gain rule contractually to ensure the artist’s rights and the artwork’s provenance are maintained.

5. The Link Between Royalty and Provenance (The “New CoA”)

To ensure the integrity of your collection, @ESRAC.ART connects the royalty payment to the Provenance Database:

  • Validation: Upon a secondary sale, the new buyer should ensure the seller fulfills the Droit de Suite.
  • New Certificate: Once @ESRAC receives proof of the royalty payment, the artist will:
    • Void the previous Certificate of Authenticity (CoA).
    • Issue a new Digital CoA in the name of the new owner.
    • Update the Market Quote (Last Transacted Price) in the public catalog.
  • Importance: Artworks without a validated royalty payment will not have their provenance updated, which may affect their future market value and “Platform Validated” status.

6. Contractual Clauses

All @ESRAC.ART purchase contracts include these binding obligations:

  • Notification: The buyer/seller must notify @ESRAC.ART of any resale within 30 days.
  • Liability: Failure to comply constitutes a breach of contract, subjecting the seller to indemnification for the unpaid royalty and legal costs.

7. How to Comply

To declare a resale or initiate a royalty payment, please contact the artist directly at dm@esrac.art. Our team will provide the necessary auditing support to calculate the adjusted capital gain and issue the updated documentation.

@ESRAC.ART | Resale Royalty Right Policy | Version 1.3 | 03/02/2026