Art Law Gallery : Art Law Lawyer & Attorney : Sheppard Mullin Law Firm : Intellectual Property, Licensing Law : Art Law Gallery Legal Blog

The recent news that the Andy Warhol Art Authentication Board, Inc. will dissolve in early 2012 brings the role of authentication boards in the art world to the fore once again. The Board, which has been charged with authenticating the works of Andy Warhol since 1996, has been the subject of controversy, probably owing more to the nature of Andy Warhol's art-making process and his fame rather than anything the Board may have done. Warhol was famous for industrializing the art-making process, frequently directing others to execute works on his behalf. The question of what makes a Warhol is subjective and is open to changing interpretation as scholarship develops, as it involves current thinking on what steps of the art-making process the artist must control in order for a piece to be considered attributable to that artist. The Warhol market is also gargantuan. ArtTactic reports that his art accounted for 17% of contemporary art sales at auction in 2010 and 12% of the total contemporary art sold in the first decade of this century.

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On October 17, a proposed class of artists filed three federal lawsuits against auction houses Christie’s, Inc., and Sotheby’s, Inc., and internet auctioneer eBay, Inc., alleging that the defendants sold their artwork at California auctions and on behalf of California sellers, but failed to withhold royalties due. The complaints seek class-action status to represent many other artists and allege that the auctioneers engaged in a ongoing pattern of concealing the identities and residencies of sellers who live in California, thereby avoiding the five percent royalty due as agents for the sellers. All three complaints, filed in the U.S. District Court for the Central District of California, allege violations of California’s Resale Royalties Act as well as California’s Unfair Competition Law.

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Attention shifts to Los Angeles this Fall, thanks to Pacific Standard Time, a stunning tribute to the Los Angeles post-war art scene. Pacific Standard Time (PST), spearheaded by the Getty Trust, presents simultaneous exhibitions and events at more than 60 Southland cultural institutions. PST provides an ideal opportunity for a closer look at practical business and legal considerations that preserve and shape an artist’s legacy.
 

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The Museum of Modern's Art (MoMA) recently announced its ‘acquisition’ of the typographic ‘@’ symbol. This unprecedented move marks a significant step into the unexplored realm of ‘acquiring’ non-physical objects.
 

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For over three decades California courts and lawmakers have attempted to achieve an equitable balance between the rights of former owners and good faith purchasers of stolen works of art. In true Hollywood fashion, the thief has played his part and left the stage. Only the original owner and the good faith purchaser remain, and the legal question California has struggled with is how to allocate the risk of loss between them. In late September, 2010, California presented its latest resolution when Governor Arnold Schwarzenegger signed Assembly Bill 2765 into law, effectively doubling the time an aggrieved party can recover an object of “historical, interpretive, scientific, cultural, or artistic significance” that has been stolen or taken by fraud or duress.
 

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Museum collections have long tantalized would-be buyers and dealers of fine art. With most museums displaying a third or less of their collections at any given time - before it moved into its new building in 2004, the Museum of Modern Art was able to display only 10 percent of its magnificent collection - there's a lot of beautiful and valuable art that's not often seen by private collectors or the general public.
 

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Decades ago, profit-driven business ventures such as McDonald's paved the way for international franchising – bringing the Big Mac to over 119 countries worldwide.  In the late 1940's, the Guggenheim Foundation followed suit, paving the way for the international franchising of world class museums.

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