The California Resale Royalty Act (Civil Code section 986), which went into effect on January 1, 1977, entitles artists to a royalty payment upon the resale of their art if the transaction takes place in California or the seller is based in the state. It was the only law of its kind implemented in the United States. On July 6, 2018, the U.S. Court of Appeals for the Ninth Circuit ruled that the California Resale Royalties Act was preempted by the Copyright Act of 1976. Now, only works resold from January 1, 1977 to January 1, 1978, when the Copyright Act became effective, are eligible for the royalty payment. Conditions for resale royalty payments The artist at the time of the sale is a United States citizen or has been a California resident for at least two years. The seller resides in California or the sale takes place in California. The work is an original painting, drawing, sculpture or original work of art in glass. The work is sold by the seller for more money than she or he paid. The work is sold for a gross price of more than $1,000 or is exchanged for one or more works of art or for a combination of cash, other property, and one or more works of fine art with a fair market value of more than $1,000. The work is sold during the artist's lifetime or within 20 years of the artist's death. The act does not apply if: The sale is the initial sale of the work and the legal title of the work at the time of such initial sale is vested in the artist. The resale of fine art is by an art dealer to a purchaser within 10 years after the initial sale by the artist to an art dealer, provided that all intervening sales are between art dealers. The sale consists of a work of stained glass artistry permanently attached to real property and it was sold as part of the sale of the real property to which it was attached. Requirements under the act for qualifying works When the sale of a work meets the conditions outlined above, a seller must pay the artist 5% of the resale price. If the artist is deceased, the payment goes to the artist's estate or heirs. It is the seller's obligation to locate the artist within 90