A new Government scheme will pay writers royalties every time their books are taken out of public libraries.
The payments system will be introduced next year, bringing Ireland in line with a European directive.
At the moment, writers are only paid once - when libraries buy their books.
In Britain, authors receive library royalties of up to �6,000 every year.
Bringing in the scheme should also remove the threat of legal action from the European Commission.
The cost of paying the new royalties could be several million euro and will come from the Exchequer rather than from borrowers.
Under the new system, libraries attached to schools will remain exempt.
An Artists' Resale Right payments system is also being introduced for artists whose original works are resold through the art trade.