When Christie’s Auction House first entered the secondary art market of mainland China in 2005, it licensed its brand to a local auction house and received a total of RMB 97,000,000 (roughly $12,100,000) for its inaugural sale.[1] With eight years of experience in this nascent market, Christie’s started its independent business by establishing a branch in Shanghai and obtaining an auction license shortly afterward. Early March this year, Christie’s realized a total of RMB 222,030,200 (roughly $35,000,000) in its inaugural sale, selling 95% by lot and 90% by value, at its new gallery, BUND ONE, a century-old historical building in the heart of Shanghai.[2]
Continue Reading Unroll the Scroll Painting: Inside the Chinese Art Market and Its Regulatory Landscape

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”

Introduction

Art export laws are designed to prevent art and artifacts of significant cultural value from leaving its country of origin while also preserving the home country’s competitiveness in the international art market. Many countries have struggled with striking the right balance: Germany’s recent amendment to its cultural heritage protection law in June 2016 was fiercely opposed by the country’s private collectors and art dealers who are now required to obtain an export license for works older than 50 years that are valued over £150,000. Italy sought to achieve balance between government and individual interests by increasing the threshold for artworks from 50 to 70 years under its amendment passed in August 2017. The following article written by Dr. Linda Roland Danil explores the UK’s efforts to resolve these competing interests—as complicated by the post-Brexit exchange rate—in the context of the recent, successful export ban on Bernardo Bellotto’s masterpiece, The Fortress of Königstein from the North.
Continue Reading Masterpiece by Bernardo Bellotto Purchased by London National Gallery Consequent to Temporary Export Bar

On January 23rd, in a rare public appearance, Jasper Johns testified against a New York foundry owner, Brian Ramnarine, who was charged with creating unauthorized sculptures, including a fraudulent Johns “Flag” sculpture which Ramnarine allegedly made from the original mold and attempted to sell for $11 million.  Johns testified that the sculpture was not authorized, the signature was forged and the certificate of authenticity was a fake.  Ramnarine pled guilty to three counts of wire fraud in Manhattan federal court, admitting that he had tried to sell unauthorized sculptures of Johns and other artists.
Continue Reading Ain’t Nothing Like the Real Thing: Despite Forgery Scandals, the Fine Art Market is Booming

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

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

By Christine Steiner

In the same era Gerald Ford advised his fellow Americans that “our long national nightmare is over,” as he succeeded Richard Nixon as president, the California Legislation enacted the sloppily-drafted California Resale Royalty Act, Civil Code Section 986. The act was not exactly a nightmare, in truth it slumbered for most of its thirty-plus lifetime. It seemed more honored in the breach than the observance. Recent awareness of the resale royalty obligation, though, has caused confusion and consternation for California sellers, for California artists and for the art trade nationwide. Some have, in fact, described it as a nightmare. As of late last week, the nightmare may be over.Continue Reading My Fellow Californians – Our Long National Nightmare is Over

By Lano Williams and Christine Steiner

The past year was packed with litigation that ranged from broad constitutional questions to the ever present scourge of forgeries. Art Law Gallery presents highlights of some of the most important cases:
 Continue Reading The Year In Review

By Tyler Baker and Christine Steiner

The success of the art market depends largely on confidence in the authenticity of artists’ works. Traditionally, a work in an artist’s “catalogue raisonné” has been key to confirming the authenticity, and thus value. To that point, a recent lawsuit filed in the U.S. District Court for the Southern District of New York (“S.D.N.Y.”) regarding a purported Jackson Pollock work underscores the importance of the catalogue raisonné in pre-purchase due diligence, and shows that omission from the catalogue could be potentially disastrous to the value of a work. See Lagrange v. Knoedler Gallery, LLC, 11-cv-8757 (S.D.N.Y.) (filed Dec. 1, 2011). Continue Reading Cherchez les Catalogues Raisonnés

By Lano Williams and Christine Steiner

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.Continue Reading Authentication Board to Death by Lawsuits