Oped: How To Clean Up The Art Market? Not Necessarily With More Regulation

Oped: How To Clean Up The Art Market? Not Necessarily With More Regulation

And these two aspects of the art market are not clearly separated. There is a huge overlap and there is no meaningful way to control one and control the other. As many potential participants invest not only their money but also their personal lives in this single market, further regulation may occur.

The truth is that there are already powerful tools to avoid many legal problems in the art world. For example, with our strong litigation practice, we resolve many disputes arising from the absence of a written contract. In some cases, parties enter into multi-million dollar contracts without any written form or on just one page. , empty account

Parties benefit from more comprehensive contracts that address and share common risks in art transactions. (For example, the risk that the work may have copyright, validity, or status issues.) The parties may negotiate and amend the financial terms to address their particular concerns and priorities, such as privacy or resale restrictions.

We also handle court cases that can be dismissed by submitting a one-page document known as a UCC-1 Financial Statement, which allows applicants to clearly declare their interest in someone else's artwork. (For example, when the owner uploads a photo to the gallery).

Conversely, some problems can be avoided by doing a simple UCC-1 search to see if anyone has filed a UCC-1 for artwork. When used properly, these techniques help parties proactively protect their rights and prevent buyers from purchasing works subject to competing claims.

Questionable and even fraudulent trading practices can occur in any market, even a highly regulated market like the stock market. The art market is no different.

But instead of rushing through regulation and thereby confusing a broader market segment, the art world should encourage greater education and awareness of simple, readily available tools and best practices that can help participants avoid legal disputes early.

Judd B. Grossman and Kathryn CB Lucas, Grossman Attorneys in Manhattan, specialize in art matters.

Art talk with artist Jean Pedersen

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