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The strength of the US dollar against the British pound – at present, the pound has dropped nearly 18% since the beginning of 2022 – would appear to make the purchase of art and other cultural property in the UK and Europe far less expensive for Americans. But the tumultuous state of the world has thrown a multitude of wrenches into British art exports to the US. The (not over yet) pandemic, (nor over yet) Brexit crisis, growing inflation, expanding regulations to prevent anti-money laundering, frustrating global supply chain backups and other issues have made it maddeningly difficult for US-based buyers to acquire art from UK sellers. The effect is thwarting major purchases.
Continue Reading For US Art Collectors Shopping in the UK, the Dollar’s Strength is Deceiving

For centuries, artists have been celebrated for pushing boundaries and shaping how society should view art. As members of the audience, we rely on artists to expose us to these unique dimensions of thought and we return the favor by placing value on their creations. For the past twenty years, one anonymous artist has continuously thrilled his audience by publicly displaying his work throughout the streets of major cities. Banksy, as the public knows him, has once again shocked his audience, this time at the Sotheby’s auction of one of his most famous graffiti pieces, “Girl with Balloon.”
Continue Reading “Bank For Your Buck” – The Legal Implications of Banksy’s Destruction of “Girl with Balloon”

Confidentiality provisions are not a new or novel inclusion in agreements for the sale of assets, let alone the sale of artwork. However, the extremely drawn out case of Hoffman v. L&M Arts, et al, presents a rather odd view on the scope and nature of confidentiality provisions within the art law context. Specifically, it provides buyers and sellers of artwork with important advice for the inclusion and construction of confidentiality provisions in future sales. The case also presents the interesting issue of whether a confidentiality provision requiring that the transaction for the sale of artwork remain confidential can preclude the future sale of the work.
Continue Reading Just Between Us: Buyer of Rothko Painting Sued for Breach of Confidentiality

In late 2012, we reported on a New York Appellate Division order that sent shockwaves and fear of instability through the auction house world.  Late last month, the New York Court Appeals issued its opinion in the case of William J. Jenack Estate Appraisers and Auctioneers, Inc. v. Rabizadeh, overturning the Appellate Division and ruling that an auctioneer need not disclose the actual name of the owner who has consigned the work.  The Court ruled that only disclosure of the name of the auctioneer would satisfy New York’s Statute of Frauds.  The decision reverses the earlier opinion and re-permits the long-established practice of anonymity with regard to the names of owners of auctioned works.
Continue Reading Mum’s the Word: New York’s Highest Court Maintains Anonymity in Auction Sales

In Cariou v. Prince, No. 11-1197-cv (2d Cir. Apr. 25, 2013), an opinion with significant importance for the art world, the U.S. Court of Appeals for the Second Circuit clarified what is required for a defendant’s entitlement to the “fair use” defense to a claim of copyright infringement, holding that the law does not require that a secondary use comment on the original artist or work, or popular culture, but only that the secondary work be “transformative.”Continue Reading Appropriate Appropriation: Second Circuit Holds That Commentary on Original Work Unnecessary for Fair Use Defense, Only Transformative Quality Required

Last post discussed the legal issues surrounding museum loan agreements. This post continues the discussion of museum loans with a look at loans coming into the U.S. from abroad. When exhibition descriptions use the phrase “supported by an indemnity from the Federal Council on the Arts and the Humanities,” or similar language, the organizers have taken advantage of the laws that provide immunity from seizure and indemnification in the context of international loans.Continue Reading Museum Loans – Part Two

Museum loans have many benefits. Generous lenders serve the public good by making works available for display and exhibition both here and abroad. Lenders should have a passing familiarity with legal issues surrounding museum loan agreements because the agreement is designed to govern all aspects of the loan throughout the specified term. What follows is a brief description of the basic provisions of loan agreements and some issues collectors should consider when lending art to museums.Continue Reading Museum Loans

Auction houses typically do not disclose the identity of the seller on their sales contracts. A recent New York trial court decision may drastically change that longstanding practice.

The auction trade is supply-driven. As such, it heavily depends on sellers – and those sellers usually want to remain anonymous. Consignors have various motives for keeping their identity anonymous. They may want to avoid having relatives or creditors know they sold family valuables, or do not want the public knowing what is "none of their business". Dealers may not want the public to know they are selling stock. There may also be unsavory motives at play, though reputable auction houses carefully vet both the seller and the goods.Continue Reading Caveat Consignor

We conclude our series on public art and percent-for-art programs by focusing on a recent case involving the respected American sculptor, Alice Aycock. The artist’s sculpture, Star Sifter, was created in 1998 for the John F. Kennedy Airport, New York City. The recent lawsuit was prompted by the planned removal, and thereby destruction, of the commissioned work of art.Continue Reading Public Art Programs: 1% for the 99% – Part Three