the subsequent auction the painting is bought by a New York resident. In this instance, the California law requires the New York company to withhold the amount of the royalty from the sale price, and either locate and pay the artist in New York or remit payment to the California Arts Council should the artist not be located. Further, the Act permits the New York artist to sue the New York Sotheby's under California law should the auction house fail to collect and remit the applicable royalty to the artist. In 2015, an eleven-judge en banc panel of the Court of Appeals for the Ninth Circuit affirmed, holding that applying the Act to out-of-state sales made by a California resident was unconstitutional. The court struck the clause "the seller resides in California or" from the Act, declining to rule on whether the Act could otherwise be applied to sales made within California. In 2016, the U.S. Supreme Court declined certiorari, leaving the Ninth Circuit decision in place. Preemption In April 2016, another federal judge, Michael W. Fitzgerald, held the entire act to be preempted by section 301 of the Copyright Act of 1976. That ruling was appealed to the Ninth Circuit, with initial briefs filed on March 9, 2017. Oral argument was held on April 10, 2018. On July 6, 2018, the Ninth Circuit nullified the California Resale Royalties Act. Now, only works resold from January 1, 1977 to January 1, 1978, when the Copyright Act became effective, are eligible for the royalty payment. The court ruled that royalty claims made after January 1, 1978 "were expressly pre-empted" by the Copyright Act—which does not recognize an artist's right to resale royalties. See also California Arts Council Commerce Clause Droit de suite First-sale doctrine Resale Rights Directive, a directive addressing similar subject matter in the European Union References External links California Resale Royalty Act at the California Arts Council The Droite de Suite: Why American Fine Artists Should Have a Right to a Resale Royalty. Loyola of Los Angeles Entertainment Law Review. March 1, 1995. Vol. 15, Page 10. A Right Deferred: Resale Royalties for Visual Artists. Law Student Connection, February 17, 2012. Resale Royalty Act, California Art and culture law