The following are summaries of news reports (hyperlinked below) pertaining to art law and art markets, separated by geographic regions for your browsing convenience. Wilson Elser's Art Law practice team will continue this service via our new Art Law Perspectives blog, due to launch in the near future.
BREAKING
Notre Dame De Paris in Flames
The world watched in horror on April 15 as Paris's Notre Dame
Cathedral, built in the 13th century, suffered a devastating fire.
The cathedral, one of the world's greatest historical and
architectural treasures, has been plagued by the need for repairs
not just in recent years but at least since the time of Victor
Hugo. Prominent collectors and institutions have pledged funds for
the reconstruction of the cathedral. Wilson Elser partner, Eric
Cheng traveled to Paris last week and shared his photo of the
cathedral before the fire.
- Le Monde: Emmanuel Macron souhaite que Notre-Dame soit reconstruite « plus belle encore » d'ici 2024
- Smithsonian.com: Notre-Dame Is in Desperate Need of Repairs
- Artnet® News: French Billionaire Art Collectors the Pinaults and the Arnaults Pledge $340 Million to Rebuild Notre Dame
UNITED STATES
Who Is the Author of AI Art?
"Neural network software" analyzes images uploaded by
users and generates new images. Users can manipulate the settings
to produce complex imagery that recently has been the subject of
gallery shows, media coverage and art auctions. As the profile of
this new medium is raised, so too are questions about authorship
and ownership.
- CNN Style: Who should get the credit for AI art?
Native American Art Museum Seeks New Owner for Its
Building
Founded in 1914 by Charles Fletcher Lumis, The Southwest Museum in
Los Angeles, home to a vast collection of Native American art and
artifacts, is actively searching for a new owner to renovate its
building and grounds. The museum's historic landmark facility
is outdated and requires millions of dollars in upgrades to meet
present-day standards. The museum would welcome proposals with a
focus on public programming and educational opportunities.
- The Art Newspaper: A national treasure of Native American art in Los Angeles is looking for a new owner
Judge Strikes Down Oklahoma Native American Art Law as
Overly Restrictive
Federal Judge Charles Goodwin, Western District of Oklahoma, ruled
that the Oklahoma Indian Arts and Crafts Sales Act is
unconstitutional because it defines the term "Native
American" more narrowly than federal law. Oklahoma's
statute was originally passed in 1974, but was amended in 2016 to
require an artist to be a member of a federally recognized tribe
for his or her artwork to be considered "Native
American." According to the court, federal law allows art to
be marketed as "Native American" even if the tribe is not
federally recognized so long as it is recognized at the state
level.
- San Francisco Chronicle: Judge rules Oklahoma Native American art law too restrictive
New Arts Space Opens in New York, Moving Walls and
Removing Barriers
The Shed, a new nonprofit cultural facility, opened in New
York's Hudson Yards in April 2019. The building features a
moveable shell that can be rolled out onto an outdoor plaza. The
Shed's mission is to commission, develop and present works of
visual and performing arts and popular culture while minimizing
social and economic barriers of access to art: 10 percent of the
tickets for each performance are available to low-income families
for $10.
- The Art Newspaper: Shapeshifting $475m arts space The Shed opens in New York's Hudson Yards
Anti−Money Laundering Regulation of the Art
Market: Will U.S. Follow the EU's Example?
Last year, U.S. lawmakers proposed legislation that will add
scrutiny and impose regulatory oversight on art dealers and
purchasers. The legislation is meant to prevent money laundering,
terrorism and fraud. However, experts disagree on the extent to
which art transactions contribute to those issues. Art dealers
worry that the administrative burden will have a chilling effect on
the art market. Commentators expect that the bill will be
reintroduced in the United States this year following the adoption
of the Fifth Money Laundering Directive by the EU.
- New York Law Journal: Art Market May Be Asked to Reveal What's Behind the Curtain With Proposed Legislation
Bipartisan Bills Introduced to Create a National
Women's History Museum
Two separate bipartisan bills, both called the "Smithsonian
American Women's History Museum Act," were introduced in
Congress in an effort to commission a new Smithsonian museum
dedicated to women's history. The push to establish the museum
dates back to 1996. Despite bipartisan support, financial obstacles
remain.
Anna Delvey on Trial for Fraud in Connection with
Proposed Art Foundation
During the criminal trial of alleged con artist Anna Sorokin, aka
Anna Delvey, the prosecution introduced testimony from bank
executives that Sorokin lied about her net worth as part of a
scheme to secure tens of millions of dollars in loans for the
creation of the Anna Delvey Art Foundation. Ms. Sorokin is facing
up to 15 years if convicted.
- Artnet News: Anna Delvey Tried to Con Bankers Into Lending Her Millions of Dollars to Open an Art Foundation, Witnesses Say
Museum Stricken from Art Patron's Will Sues
Heir
A Portland, Maine art collector and patron, Eleanor Potter, removed
the Portland Museum of Art as the primary beneficiary of her estate
just months before her death in 2015. The museum is now suing her
caretaker, to whom Ms. Potter bequeathed the majority of her $2
million estate, alleging "elder abuse." The trial is
scheduled for July 2019.
- Artnet News: A Donor Removed the Portland Museum From Her Will Just Before Her Death. Now, the Museum Is Suing Her Caretaker
Lawmaker Introduced Bill to Cut Funding for Art in U.S.
Embassies
In the wake of the State Department's purchase of a sculpture
during the longest government shutdown in U.S. history,
Representative Tim Burchett (R-TN 2nd District) introduced a bill
titled the "No Art in Embassies Act" to prevent the use
of government funds "for the purchase, installation,
insurance, or transport of any art for the purposes of installation
or display in any embassy, consulate, or other foreign mission of
the United States." The Art in Embassies program dates back to
1953 and is intended to "advance cultural diplomacy through
artist exchanges and the presentation of works by outstanding
American and international artists to audiences around the
world."
Activists Call for the Removal of Warren Kanders from
the Whitney's Board
Art scholars, critics and historians signed a petition seeking the
removal of Warren Kanders, the Whitney Museum's vice chair and
chief executive of Safariland, a company that produces weapons for
the police and military, including tear gas used at the U.S.
southern border to keep order. The basis of the petition is to
allow for "a deep, and long-overdue conversation about
artwashing, the role of private funding in the cultural sphere, and
the accountability of institutions to the communities they claim to
serve."
FBI's Art Crime Team Needs Help Repatriating Native
American Artworks
After raiding a prominent collector's property in 2014, the
FBI's art crime team is now seeking help to return thousands of
objects, works of art and Native American human remains. The
collector, Don Miller, who worked on the Manhattan Project, also
conducted amateur archaeological digs, the legality of which was
questionable, according to the FBI. To date, only about 12 percent
of the 8,000 items have been returned, a process complicated by the
diversity of the works and the need for multiple experts to
identify them.
- The Art Newspaper: FBI launches campaign to return haul of Native and South American works
Athena Art Finance Under New Ownership
Athena Art Finance, an art-based lending company, was purchased by
YieldStreet, a start-up specializing in alternative investments.
The sale comes as other players in the art finance sector recently
have consolidated.
- The Art Newspaper: Another shake-up in art finance sector as Athena sold for $170m
A Black Hole Photographed for the First
Time
A team of more than 200 researchers, working together for 10+
years, collected data from eight ground-based radio telescopes
located in Chile, Mexico, Spain, Hawaii, Arizona and the Antarctic
as part of the Event Horizon Telescope Project designed to capture
the first-ever image of a black hole. The frightening image has
drawn comparisons to "the eye of Sauron" as depicted in
the Lord of the Rings movies based on J.R.R. Tolkien's
trilogy.
- Artnet News: 'It's an Absolute Monster': See How Astronomers Snapped the First-Ever Photograph of a Black Hole
- The New York Times: Darkness Visible, Finally: Astronomers Capture First Ever Image of a Black Hole
NORTH AMERICA
Artist Ordered to Pay Damages for Defamation After a
Rant on Facebook
Artist Ryan Livingston accused gallery owner Ingrid Mueller of
failing to pay him for the sale of a sculpture in 2014. Livingston
won a $569 verdict against Mueller in small claims court, but was
subsequently sued by Livingston for defamation after posting a rant
questioning Mueller's honesty and ethics on his Facebook
account. The artist was ordered to pay approximately 3,000 Canadian
dollars in damages, a fraction of the damages amount sought by the
plaintiff.
SOUTH AMERICA
Divers Discover a Well-Preserved Trove of Artifacts in
Lake Titicaca
Marine archaeologists excavating a site in the basin of Andean Lake
Titicaca uncovered a cache of well-preserved artifacts from the
Tiwanaku empire six miles off-shore and under 16 feet of water. The
Tiwanaku were a pre-Inca society who lived in the lake's basin
between the 8th and 10th centuries A.D. The finds included a lapis
lazuli puma figurine, ceramic puma incense burners, a gold
medallion, gold ornaments, and spondylus oyster shells originating
in an ocean shore more than 1,200 miles away, evidencing the
complexity of this early society.
Brazil in the Lead in Closing the Gender Pay Gap for
Women Artists
In contrast to other sectors of their society, women artists in
Brazil earn nearly the same as their male counterparts.
Historically, the lack of an organized gallery and museum system
allowed women to enter the market easily. Combined with a tradition
that considers arts and crafts a feminine pursuit, the Brazilian
art market is easier for women to break into than in other
countries.
- Artnet News: In the Struggle to Close the Gender Pay Gap in the Art Market, Brazil Has Set a Surprising Example
São Paulo's New Governor Proposes Steep
Budget Cuts for Cultural Programs
The proposed cuts would result in a 23 percent reduction in the
culture ministry's annual budget. The cuts are expected to
impact significantly the public programs and temporary exhibits at
Pinacoteca, one of the most comprehensive museums in South America,
resulting in large numbers of employees losing their jobs.
- The Art Newspaper: São Paulo's new millionaire governor João Doria proposes massive cuts to culture budget
Cause of Fire in Brazil's National Museum
Identified
The fire that destroyed most of the Brazil National Museum's 20
million artifacts last year was caused by air conditioning units
that were receiving a stronger electrical current than they were
designed to handle. In addition, the museum lacked sprinklers, fire
doors and other fire protection devices. The museum, which housed
Latin America's largest collection of historical artifacts,
reportedly spent only $4,000 on safety equipment during the period
2015-2017, according to the nonprofit Open Accounts.
- Reading Eagle: Air conditioning unit at the origin of Brazil museum fire
EUROPE
European Council Adopts New Anti-Trafficking Rules for
Cultural Heritage Imports
The EU now will require import licenses for art, antiques and books
more than 250 years old that are imported from countries outside of
the EU. The new rules are meant to protect against illicit trade,
combat terrorist financing and money laundering and prevent the
destruction of cultural valuables.
- The Art Newspaper: EU adopts new rules on cultural heritage imports
EU Applies Anti−Money Laundering Rules to Art
Transactions
Pursuant to the new Fifth Directive of the European Council, art
gallerists, auction houses, brokers and dealers will be required
over the next year to conform to due diligence rules designed to
prevent abuse in financial transactions. The requirements include
identifying the customer and verifying the customer's identity;
verifying that any person purporting to act on behalf of a customer
is so authorized; and identifying and verifying the identity of
that person. The new rules are expected to have a significant
impact on the European art market, where smaller dealers and
advisers may be unprepared financially or lack the resources to
handle the new requirements.
- The National Law Review: New Application of Anti-Money Laundering Rules to Art Transactions
EU Wants to End the Freeport System
Freeports, tax-free storage for art and other valuables, have been
used by dealers and collectors to facilitate international art
transactions for decades. However, following the recent
high-profile tax scandals, such as the Panama Papers and LuxLeaks,
the European Parliament voted 505 to 63 in favor of adopting the
recommendations of its special committee's report to close all
freeports in Europe. While not binding, the vote has
"political relevance" and would likely factor into the
work of the EU's Commission.
Trial of the Frans Hals Case Concludes After One
Defendant Settled Out
UK dealer Mark Weiss announced an "amicable" settlement
with Sotheby's, which sold on his behalf, and subsequently
rescinded the sale of, a portrait bearing Frans Hals's
signature, which was suspected of being a fake. This painting, once
called a national treasure by the French ministry of culture and
nearly purchased by the Louvre, was part of a major Old Masters
forgeries scandal involving artworks sold by French dealer Guiliano
Ruffini. Following the refund of the purchase price to the buyer,
Sotheby's sought to recoup its losses from Weiss and Fairlight
Arts Venture. Weiss maintained his continued belief that the
painting is real and his settlement came without admission of
liability. The case against Fairlight continued to trial; judgment
is expected this summer. Sotheby's director of scientific
research, James Martin, who testified during the trial, stood by
his finding that the painting was a modern forgery.
- The Art Newspaper: Sotheby's settles claim against London dealer Mark Weiss in Frans Hals case
- Artnet News: London Dealer Mark Weiss Pays Sotheby's $4.2 Million to Settle a Dispute Over an Allegedly Fake Frans Hals
- The Art Newspaper: Court case over 'modern forgery' Frans Hals concludes but judgment reserved until summer
A Night at the Museum, with Mona Lisa
To celebrate the 30th birthday of the courtyard Pyramids, the
Louvre and Airbnb are sponsoring a contest, "The Sleepover of
Your Life." This is a once-in-a-lifetime experience for the
lucky winner and a guest, who will get to sleep in a mini glass
pyramid under the Louvre's glass pyramids. In addition to
airfare and sleeping accommodations, the winners will receive a
private tour of the museum, cocktails in a living room set up at
the Mona Lisa, dinner in front of the Venus de Milo and a concert
in Napoleon's chambers.
- Airbnb: A night at the Louvre
- AFAR: Airbnb Wants You to Have the Sleepover of Your Life—at the Louvre
- Artnet News: Airbnb's Newest Host Is the 'Mona Lisa,' and the Louvre's Letting Two Special Guests Spend a Night at Her Place
JR's Massive Collage at the Louvre Was Destroyed in
a Day
To celebrate the 30th anniversary of I.M. Pei's pyramids in the
courtyard of the Louvre museum, French artist JR and 400 volunteers
installed a collage constructed from 2,000 pieces of paper that
created the illusion that the pyramids reached underground.
Unfortunately, the curious public hunting for souvenirs joined with
the elements in destroying the fragile artwork within a day. JR, a
master of optical illusion, previously wrapped the pyramids in a
way that made them appear to vanish when viewed from a certain
angle.
New Research Finds That Art Institutions' Exhibition
Budget Is Half That of Science Museums
New research into the finances of special museum exhibitions
spearheaded by Vastari, an online service provider that connects
museums to private collectors and commercial exhibition producers,
finds that most art institutions have surprisingly low budgets for
temporary exhibitions − less than $10,000 per show. Science
institutions, by contrast, benefit from larger exhibition budgets
and employ more collaborative approaches to finding cost-effective
solutions.
- The Art Newspaper: Art venues have half the budget of science museums for temporary exhibitions, new report finds
Photographs of the Cottingley Fairies Sold at
Auction
In 1917, two British schoolgirls, Elsie Wright and Frances
Griffiths, used paper cut-outs of fairies, traced and drawn by
Elsie, to create photographs of a "fairy encounter." The
photos, known as the "Cottingley Fairies," taken on
Wright's father's Midg quarter-plate camera, garnered a lot
of attention and debate for decades. The girls "swore each
other to secrecy" and maintained that the fairy encounters
were real until 1983, when they finally admitted that the photos
were faked. The sale took place at Dominic Winter Auctioneers in
Gloucestershire on April 11, 2019.
- Artnet News: Faked 'Fairy' Photographs From a Famous 20th-Century Hoax Could Fetch $90,000 at Auction
- BBC News: Cottingley Fairies photos sell for £50,000
France Launches an Art Restitution Task
Force
The French government has allocated about €200,000per year to
launch a mission to find the rightful owners or heirs of some 2,000
pieces of art that the French government has possessed since after
the Second World War. The new office will research and investigate
claims submitted to the commission for Compensation of Victims and
Spoliation, and work with museums, universities and international
counterparts to return the works. While this budget is tight, the
office is optimistic that it will be able to find additional
financial resources to support their work.
Another Museum Will No Longer Accept Sackler Family
Donations
The Jewish Museum Berlin follows the lead of several prominent
museums around the world that are no longer accepting donations
from the Sackler Trust, due to the Sackler family's financial
ties to Purdue Pharma, manufacturer of the drug linked to the
opioid addiction crisis. However, the museum's Sackler
Staircase will not be renamed.
- The Art Newspaper: Jewish Museum Berlin says it would no longer accept Sackler family donations
- The Art Newspaper: Guggenheim Museum says it 'does not plan to accept any gifts' from the Sackler family
- The Art Newspaper: Tate to stop accepting donations from the Sackler Trust
Young Artist Using a Metal Detector Finds a Gold Roman
Coin
A 24-carat gold coin with the face of Allectus, Roman Emperor of
Britannia from 286−296 A.D., was found in Kent, England, by a
30-year-old artist using a metal detector near the site of an
ancient Roman road. Allectus is being touted as the first
"Brexiteer," since he removed Britain from the Roman
Empire. The coin is estimated to sell for as much as $130,000 at
auction on June 12, 2019, with proceeds to be split between the
finder and the landowner. As only one coin was found, the find does
not fall under the UK's Treasure Act.
- Artnet News: An Amateur Metal Detectorist Found an Ancient Roman Coin Depicting the 'First Brexiteer' in an English Field
Museum's "Resume Contact" with Art Dealer
Following Unconfirmed Sexual Harassment Allegations
After a police investigation failed to produce "firm
evidence" of sexual harassment and other inappropriate
behavior by Anthony d'Offay, the prominent British art dealer,
collector and curator, UK museums, including the Tate and the
National Galleries of Scotland, have resumed working with
d'Offay, who is one of the founders of Artist Rooms, a touring
program that sends contemporary art to galleries and museums across
the UK and is responsible for bringing art to some 44 million
visitors.
- Artnet News: UK Museums 'Resume Contact' With Donor Anthony d'Offay Following Sexual Harassment Allegations
Christo to Wrap the Arc De Triomphe
Famous for wrapping landmarks around the world, Christo will return
to Paris 35 years after wrapping the Pont Neuf, this time to wrap
the Arc de Triomphe in April 2020. The project, which will feature
25,000 square meters of silvery blue recyclable polypropylene
fabric and 7,000 meters of red rope, will be funded entirely by the
artist.
- The Art Newspaper: Christo to wrap the Arc de Triomphe in Paris
ASIA
Artist's Use of Color Creates Diplomatic
Problem
British artist Mark Wallinger identified Taiwan as a sovereign
entity by making it a different color than the one used for China
in a public art installation called The World Turned Upside Down at
the London School of Economics. The United Nations and most of its
members, including the UK, do not recognize Taiwan as an
independent state. Wallinger maintains that the designation was an
error, but says that is it up to the LSE to require any changes to
the piece.
- The Art Newspaper: Wallinger's upside-down globe outside LSE angers Chinese students for portraying Taiwan as an independent state
New Twist in the Case of Stolen Peacock
Idol
The Hindu Religious and Charitable Endowments (HR&CE)
Department of the Government of Tamil Nadu, which manages and
controls the temple administration within the state, revealed
during a court proceeding that the peacock idol allegedly stolen
from the Kapaleeswarar Temple in Mylaport in 2004 may in fact have
been a replacement for the broken idol installed the year before,
meaning that the stolen idol is not of antique value.
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