Make money and skip admin with the Auction House Licensing Scheme

Few artists realise that when you sell your original artwork, you still own the copyright to its image, and therefore the right to its reproductions in advertising and promotional materials. If an individual or an organisation plans to use an image of your artwork to promote an auction in physical or digital media, create advertising that includes or references your artwork, or incorporate your artwork into the design of a product that will be sold or used to promote a business, they need your permission. As the copyright owner, you have the right to grant them a licence to reproduce your artwork for commercial purposes. That licence is something they should pay you for, and it’s up to you to negotiate the terms (unless you work with an agent who can negotiate on your behalf).

How the law works

In Aotearoa New Zealand, you do not have to register copyright, because it applies automatically when you publish an original work. If you have created something original that other people can see, hear, or interact with, your artwork is protected by copyright. Whether you wrote it down, painted it on canvas, or saved it in a digital format, protection exists from the moment that it was created. Your ownership of the copyright in your original work lasts for your entire lifetime, and up to 50 years after your death, unless you choose to sell, or authorise someone else to exercise your rights. 

In most cases, you are the first owner of copyright in an original work that you create, which means that you have the right to decide how your work is used. Anyone who wants to copy, publish, publicly perform, transmit or adapt your material is legally obligated to obtain your permission to do so, unless their use is authorised under the Copyright Act. People can use your original work for research, private study, criticism or review, and reporting current events in a ‘fair’ manner without gaining your permission as the copyright owner. 

If you’ve created a work under a commission or as an employee, be sure to check your contract. The employer or commissioner may by law be the first owner of copyright in certain types of works, unless your contract says otherwise. Find out more about the Commissioning Rule here. 

How to skip the admin and still get paid 

Once your artwork is available for resale on the secondary art market, you will need to negotiate licensing terms, review contracts, and monitor payments with auction houses for the appearance of your artwork in their catalogues and marketing materials. 

Let’s be honest. You would rather be creating masterpieces than emailing auction houses to advocate for their value and reading fine print. Fortunately, you have the convenient option of prompting the Auction House Licensing Scheme run by Copyright Licensing New Zealand (CLNZ) to manage the boring stuff on your behalf. That way, you can skip all the admin and still get paid. 

CLNZ are a not for profit organisation. They don't charge artists a membership fee, instead they deduct a 20% fee from all licensing transactions, to cover the running costs of the scheme.

Why you should join the Auction House Licensing Scheme

If you sign up to the Auction House Licensing Scheme, you could start receiving payments for allowing the masses to feast their eyes on your artwork in sleek arty brochures within months! You can sign up online at no cost, you retain 100% ownership of the copyright in your artwork, AND the agreement is non-exclusive. So, you can continue to license your work for other projects while the experts help you to navigate this whole auction house licensing gig. 

All without a catch in sight – just smart people who want to see artists remunerated for their efforts – why not join the scheme?? The onboarding process is short and sweet, I promise. Start here.

What are the most common misconceptions about copyright that you come across among artists? 

Sam Irvine, Chief Executive at Copyright Licensing New Zealand: That they have to register or do something to have copyright – but you don't . It's your work and while someone may own the work, they do not own the copyright – you do. 

Karen Workman, Creative Rights Educator: "If it's on the internet, it's public domain, and anyone can steal it and use it." You still have rights. And "public domain" means that the copyright term has expired – currently the lifetime of the creator plus 50 years in NZ. It doesn't mean it's on a widely accessible platform.

“If someone steals my work, there's nothing I can do.” You still have rights and it may be possible to resolve a situation through conversation, licensing or legal action.

“Copyright is hard to understand.” Sign up for one of our workshops and you’ll find that it’s more straightforward than you think.

What do artists retain ownership over when they sell their artwork? 

Sam Irvine: The image itself. 

Karen Workman: Unless there is a contract stating otherwise, artists retain moral rights and economic rights in their works, which means they have sold the physical object (the artwork), but they can still leverage the image (for example, to make prints; license; reuse;adapt etc.). Selling an artwork does not mean the rights have been sold or given away as well.

Which rights do artists relinquish when they sell their artwork? 

Sam Irvine: Someone owns that physical work but not the rights to the image. 

Karen Workman: Let’s say an artist sells an original work to you. They retain all their rights – moral and economic; you just own the physical work. But you can negotiate with the artist if you want to purchase or licence the right to do something else with the work.

Are there any routes to retrospective recourse when a copyright infringement has occurred? 

Karen Workman: Good question; simple answer is that every copyright infringement situation is case-specific and unique. In other words, it all depends. Lots of factors play in here – whether it’s civil or criminal, how long ago the infringement was etc. You can find more information here.

Where can artists access information and advice on copyright issues?

Sam Irvine: If they know of someone or some organisation that has used their work without permission, then get in touch with the CLNZ legal service. You get a free 15 minute consultation, and then subsidised hourly rates after that.

Karen Workman: We have lots of free information on our website, including Plain English, videos, and downloadable PDFs. We also have an engaging copyright workshop, Creative Rights for Creative People, that people can register for (new dates tbd). We also worked with our friends at Arts Access Aotearoa to help create accessible resources for deaf artists here: https://tahahotu.org.nz/Resources-nzsl

How can artists protect their copyright, personal, and financial interests when entering into a sale and purchase agreement of their artwork?

Sam Irvine: Have it reviewed by the legal service. 

Karen Workman: Have a contract; make sure you understand what it all means, think about how you might like to leverage your work in the future. Provide information on your website that clearly explains how copyright works. Look to organisations like Arts Makers Aotearoa for information on pricing to help position your work in the right bracket.

What are the benefits of joining? 

Sam Irvine: You get licensing payments when the auction house uses your image in their promotion of auctions. 

Karen Workman: If an artist is not registered for the Auction House Licensing Scheme, CLNZ cannot act on behalf of them to collect licensing fees for the use of their work, so it’s in every artist’s best interest to register, even if their work isn’t at auction yet. 

What are the risks/potential downsides of joining? 

Sam Irvine: None.

How do artists get paid?

Sam Irvine: Royalties are calculated using a number of variables, primarily the expected sales price, and placement in the catalogue (inside the catalogue or on the cover).

Karen Workman: Once we know whose work has been used, the artists get a direct email from us. They log into their account portal and payments are distributed quarterly. See for more information here.

What are the most positive outcomes that this scheme has resulted in? 

Sam Irvine: Artists getting remunerated for their work – leads to more sustainable career earnings for artists. 

Karen Workman: Artists benefitting from the use of their work, and clear compliance with Copyright law. Thank you to the auction houses (Art+Object, Webbs, International Art Centre, Dunbar-Sloane) that work with us to enable artists to benefit from their work, and for being an integral part of the art market ecosystem – the scheme wouldn’t exist without their agreement.

Where can artists sign up/find out more? 

Sam Irvine: Easy – just find out more and sign up here.