Bonhams Launches Voluntary Artist Resale Royalty Program for US Auctions

Bonhams is introducing a voluntary resale royalty program in the United States that allows consignors to share secondary-market sale proceeds with living artists, backed by a matching contribution from the auction house's own buyer's premium. Developed in partnership with collectors Kasseem Dean and Alicia Keys, the initiative represents an attempt to establish a private-sector equivalent to the resale royalties that are common internationally but have repeatedly stalled in US legislative efforts.

The financial mechanics of the program, named "The Deans' Choice with Bonhams," rely on a split-contribution model. According to ARTnews, participating consignors must commit a minimum of 1 percent^[1] of the hammer price or $500,^[1] whichever is greater, which Bonhams then matches using a corresponding percentage of its buyer's premium. For a past benchmark, a painting by Jadé Fadojutimi that hammered at $220,000,^[1] (or $279,900^[1] with fees) would have yielded a royalty of $11,000^[1] from the consignor and $2,995^[1] from the auction house, assuming an opted-in rate of 5 percent^[1].

This structure alters the net realizable value calculations for consignors who choose to participate, introducing a direct trade-off between philanthropic alignment and transaction margins. While traditional resale royalty debates have historically centered on legislative mandates, this elective model shifts the decision-making authority directly to individual collectors and their advisors at the moment of consignment. As reported by The Art Newspaper, the initiative is designed to appeal to collectors who are increasingly attentive to how their market activities align with their values.^[2] By matching the consignor's contribution from its own buyer's premium, Bonhams is absorbing a portion of the transaction cost, directly impacting its own margins on participating lots to lower the friction of adoption.

The initiative addresses a long-standing friction in the American art market, where living artists typically receive no financial benefit when their works are resold at a multiple of their primary-market prices. The Art Newspaper noted that this tension dates back decades, famously escalating when artist Robert Rauschenberg confronted collector Robert C. Scull after a high-profile auction.^[2] While numerous countries have established statutory resale rights for visual artists, US efforts have remained inactive. By creating a voluntary framework, the program bypasses legislative gridlock but introduces a variable transaction landscape where the net return on a secondary-market sale depends on whether a consignor opts in and whether the artist has registered to receive the funds.

Estate executors, and art advisors, the elective nature of the royalty introduces new administrative considerations during asset disposal. The available record does not establish a universal fiduciary or committee requirement for that decision. Furthermore, the long-term viability of the program remains unmeasured. The available evidence does not disclose how many consignors will voluntarily dilute their net proceeds, nor does it establish whether competing auction houses will adopt similar matching structures. The program's capacity to establish a broader market standard depends entirely on the willingness of high-net-worth sellers to prioritize artist equity over maximum capital recovery.