In 2011 the European Commission undertook an extensive stakeholder consultation prior to the publication of a report on the implementation and effects of the Resale Right Directive(1).

The report, published on 14 December 2011(2), analysed available data on changes in global art market shares. It concluded that no clear patterns could be established to link the loss of the EU's share in the global market for modern and contemporary art with the coming into force of the directive on 1 January 2006. Neither could any clear patterns be established that would indicate systematic trade diversion within the EU away from Member States which introduced the right for living artists in 2006, such as the UK.

The report pointed to a wide range of factors affecting the development and competitiveness of art markets including changes in taste, in the perception of the investment value of art, taxation policies (including VAT), rates of commission and administrative costs, including those relating to the administration of the resale right. The report noted that primarily ‘domestic’ markets tend to see a high volume of low value sales, dominated by smaller businesses which are particularly vulnerable to regulatory burdens.

Recognising that there are pressures on European art markets, the report concluded that market developments should be kept under review. The Commission will report again in 2014. In the meantime, the Commission intends to establish a Stakeholder Dialogue, tasked with making recommendations for the improvement of the system of resale right collection and distribution in the EU.

(1) Directive 2001/84/EC, OJ L 272, 13.10.2001, p. 32. (2) COM(2011) 878 final, available at http://ec.europa.eu/internal_market/copyright/docs/resale/report_en.pdf