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Recovering Artwork Stolen by Nazis: Two Recent Cases

Two cases decided recently highlight the difficulty descendants of holocaust victims experience when trying to recover artwork the Nazis stole from their ancestors.

In the first case, a German appeals court decided that the heir to a six million dollar collection of vintage posters may not be entitled to the return of the posters from the German Historical Museum.

The posters were collected by Hans Sachs, a prominent dentist in Weimar Germany who had Albert Einstein as a client. Hans Sachs began collecting the posters when he was sixteen and eventually amassed the largest collection of posters in the world. As the Nazis gained power he continued to stay in Germany, even after the Nazi government revoked his dental license. On Kristallnacht, the Nazis took the poster collection from Hans Sachs at gunpoint. He was sent to a concentration camp but he was later able to escape to the United States.

After the war, the East German government told Sachs that the posters had been destroyed, but in 1970 a curator at what is how the German Historical Museum discovered the posters. Sachs attempted to have the posters returned but the East German government refused to cooperate. Sachs never told his family that the posters had survived. In 2005, Peter Sachs, Hans Sachs’s son, found out about the existence of the posters and demanded their return. The German Historical Museum refused, relying on a letter Hans had written the museum which it claimed transferred ownership to the museum. Peter Sachs sued in court and won but the museum appealed.

On January 31, that appeal was decided in favor of the museum. While the court has not issued a final decision, a judge at the hearing remarked a compensation payment from the German government to Hans Sachs may allow the German Museum to keep the posters. Peter Sachs argues that the payment from the German government was accepted by his father when he thought the collection had been destroyed. In all likelihood, an appeal will follow.

The second case, decided in New York last April, also held that the descendant of a holocaust victim was not entitled to the return of a piece of stolen artwork. Julius Schoeps argues that his great uncle, Paul von Mendelssohn-Bartholdy, a prominent German-Jewish banker, sold a Picasso painting entitled “The Absinthe Drinker” to a German dealer under duress. Schoeps claimed the painting, which the Andrew Lloyd Weber foundation has owned since 1995, should be returned to its rightful heirs. The New York Court found against Schoeps because he failed to have himself appointed the personal representative of Mendelssohn Bartholdy, and thus the case could not go forward. The case is Schoeps v. Andrew Lloyd Weber Art Foundation, 2009 WL 2431943, 2009 N.Y. Slip Op. 06155 (1st Dept. 2009).

In early January 2010, Julius Schoeps and the Andrew Lloyd Weber Foundation settled the case. The terms of the settlement are not known.

Both cases highlight the difficulties faced by courts when dealing with litigation over property stolen by the Nazis. The cases span the time-frame of at least a half century. The original owners are often no longer living so in addition to determining whether the property should be returned, the court must figure out who the property should be returned to. The cases also involve the laws of several countries at once, some of which do not exist anymore (i.e., East Germany). With at least 20,000 art works still unaccounted for, these cases will continue to be brought and won’t become any simpler as time passes.

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French Government Agency Established to Fight Copyright Infringement Infringes Artist’s Copyright

The French government enacted a law in October 2009 that will effectively cut off internet access to the households of repeat copyright infringers. The legislation established a government agency to oversee the enforcement of the laws called “HADOPI.” The agency chose this as their logo:

Soon after HADOPI released this logo, a font designer named Jean-François Porchez claimed that the logo infringed on his font, which he had created for France Telecom. France Telecom does not plan to pursue the matter, but Porchez may bring a court action against HADOPI.

The implications of HADOPI’s mistake seem obvious: if the state of intellectual property law is such that a  government agency whose sole task is to enforce intellectual property rights cannot keep itself from infringing on the works of others, then something is fundamentally wrong with IP law. This conclusion is bolstered by the fact that this is not the first time the French government, which is known for its strict intellectual property laws, has been accused of infringement.

But HADOPI’s mistake may not mean that much. It’s certainly an amusing (and bloggable) anecdote, but it’s relevance to the debate over intellectual property laws is nominal. If a police officer were to illegally assault someone, we wouldn’t call for the legalization of assault.

The intellectual property debates will be resolved by paying close attention to the purposes of our laws and their philosophical foundations; not through recourse to memorable anecdotes or appeals ad hominem.

via Boing Boing

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Filmmakers, Crowdfunding, and Securities Law: A Cautionary Tale

Most filmmakers are surprised to learn that securities law may apply to the production of their film. It seems counterintuitive to think that securities law, something we normally associate with stocks and Wall Street financial firms, can apply to a small budget film funded by family or close friends or from crowdfunding sources. But in many cases, securities laws may apply, and one recent New York case underscores this fact.

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The Bono Op-Ed: A Digest

As many already know, U2’s Bono wrote an op-ed in the New York Times about “10 ideas that might make the next 10 years more interesting, healthy or civil.”

Bono devoted only three paragraphs of the op-ed to the subject of intellectual property, but those three paragraphs enraged many people. Bono argues that (1) “we’re just a few years away from being able to download an entire season of “24” in 24 seconds”; (2) file sharing hurts “fledgling songwriters who can’t live off ticket and T-shirt sales”; (3) service providers benefit from this “reverse Robin Hooding” and ISPs “swollen profits perfectly mirror the lost receipts of the music business”; and (4) the ISPs should be responsible for tracking content: “We’re the post office, they tell us; who knows what’s in the brown-paper packages? But we know from America’s noble effort to stop child pornography, not to mention China’s ignoble effort to suppress online dissent, that it’s perfectly possible to track content.”

Of course, it was the fourth claim that angered many, and it’s easy to see why. Bono draws an implicit moral comparison between child pornography and downloading mp3s, and then goes on to hold up China’s censorship of the internet as an example of what American ISPs should be doing. Both are dubious assertions. The first is a bit underhanded — Bono doesn’t draw a direct link between child pornography and file-sharing, but the association is made nonetheless. The second assertion, concerning China’s censorship, is surprising coming from a man who has devoted his later career to spreading human rights. My guess is that this is not something he thought over before he had it published.

Many have responded to the op-ed. Below is list:

Andrew Heaney of TalkTalk: Heaney makes several good points, one of which is that ISPs do not make money from file-sharing; to the contrary, the extra bandwith required actually increases ISP’s costs. In addition, “there are dozens of applications and tools out there which allow people to view content for free and no amount of snooping can detect it.”

Gigi Sohn of Public Knowledge: Sohn argues that Bono’s advocacy for stricter intellectual property laws actually runs contrary to many of Bono’s professed beliefs. She cites studies indicating that intellectual property laws principally benefit industrialized nations and stifle innovation.

Larry Downes at Stanford’s Center for Internet and Society takes issue with the child pornography connection. He writes “most federal and state efforts at solving that scourge at least in the online world have been so broad and clumsy that they instantly fail First Amendment scrutiny. ” He lists many of the these blunders and points out that “The U.S. has the most vibrant, free and innovative Internet because we don’t have gatekeepers in the middle of the network.”

Danny O’Brien of the Electronic Frontier Foundation draws attention to Bono’s contradictory efforts to make drugs more available to developing countries by loosening patent protections.

Mike Masnick of TechDirt lists some of the bands who have successfully adapted to changes in the music industry, and takes apart Bono’s claims that ISP make money from file-sharing.

Former Nirvana Bassist Krist Novoselic came out on the side of  Bono but his comments add little to the discussion. The TechDirt response is here.

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Giving Your Content Away For Free

A Time article describes how several filmakers successfully marketed their films by giving them away online. According to the article, Timo Vuorensola’s Star Wreck reached nine million downloads and generated over $430,000 from collector’s edition DVDs and merchandise. Nina Paley’s Sita Sings the Blues, also released for free online, earned over $55,000. The article ends by stating:

Soon, the middleman could be a thing of the past. And it may only be a matter of time before movie theatres — popcorn and all — are on the way out, too.

I found two problems with the article. First, I agree that this distribution model will become more common, and perhaps even the dominant form of low-budget independent film distribution. However, I don’t see movie theaters becoming extinct. The movie-going experience cannot be recreated at home; there will always be an allure to going out to a theater to be visually and aurully immersed in a film.

Second, the article also does not describe anyone who has failed at using this distribution method, and I am sure there are many. Just as with the old distribution models, there will be success and failures, and probably more of the former. The article describes the rewards of free online distribution but none of the risks.

As content becomes easier to distribute online, artists will have to look to their content as merely the bait to draw people to other revenue streams such as merchandise and donations.

According to the article, Timo Vuorensola’s Star Wreck reached nine million downloads and generated over $430,000 from collector’s edition DVDs and merchandise. Nina Paley’s Sita Sings the Blues, also released for free online, earned over $55,000. The article ends by stating:
Soon, the middleman could be a thing of the past. And it may only be a matter of time before movie theatres — popcorn and all — are on the way out, too.
I agree that this distribution model will become more common, if not the dominant form of low-budget independent film distribution. However, I don’t see movie theaters becoming extinct. The movie-going experience cannot be recreated at home; there will always be an allure to going out to a theater to be visually and aurully immersed in a film.
The article also does not describe anyone who has failed at using this distribution method, and I am sure there are many. Nevertheless, just as with the old distribution models, there will be success and failures, and probably more of the former.
Posted in Business of Art | Tagged , | 1 Comment

Does an Artist’s Foundation Have a Duty to Authenticate?

In 1936, the American Sculptor and artist Alexander Calder created a set for Erik Satie’s musical composition Socrate. The set was later destroyed, but in 1976 Joel Thome, a musician, composer and conductor of contemporary music,sought to recreate the set. Calder agreed to the reconstruction by writing on the set plans: “I have looked at the drawings & find them OK, and think everything OK, & construction can begin when you are ready.” Calder died before the sets were completed and the production was performed.

In 1997, Thome decided to sell the work. Before he could, however, he needed to have the the Alexander & Louisa Calder Foundation authenticate the work and include it in the Foundation’s Calder catalogue raisonné. Without the authentication, the work was essentially unmarketable.

Over the years, despite repeated requests, the Foundation refused without explanation to included the work in its catalogue raisonné. In response, Thome brought an action in New York state court to compel them to do so.

The court was sympathetic to Thome’s plight:

The allegations evoke our sympathy for plaintiff and some puzzlement at the lack of a formal response. Many, if not all, of the legal issues raised here might have been avoided had the Foundation provided plaintiff with some explanatory response to his submission.

Nevertheless, the The court could find no legally enforceable duty arising from the Foundation’s not-for-profit status, or its explicit or implicit promises or assertions, or its unique position as the sole arbiter of whether work will be included in Calder’s catalogue raisonné.

Interestingly, however, the court did not reach the question of whether a foundation’s denial to authenticate could open the foundation to liability to the tort of product disparagement. This tort requires a plaintiff to prove:

(1) falsity of the statement;
(2) publication to a third person;
(3) malice (express or implied); and
(4) special damages

Here the second element presented a particularly difficult problem for the plaintiff because the Foundation had not made an affirmative statement that the work was not authentic. Nevertheless, the court recognized the possibility that “as a practical matter, the denial of authentication is arguably indistinguishable from a direct assertion of inauthenticity.”

Unfortunately the court was not able to answer this question because of the one-year statute of limitations that applied to the cause of action.

Thome v. Alexander & Louisa Calder Foundation, 2009 WL 425559 (1st Dept 2009).

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Foreign Authors and the Google Book Settlement

One of the many complexities in the Google Book Search Amended Settlement Agreement is the legality of Google’s digitization efforts abroad. As Robert Darnton reported in the New York Review of Books, there has been considerable resistance to the settlement agreement on the part of foreign governments. France and Germany both submitted memorandums to Judge Denny Chin of the Southern District of New York invoking lofty principles and the value of their culture heritage  in opposing the book settlement. Now it’s clear that the opposition is not limited to Europe.

According to the Wall Street Journal’s China Realtime Report, Mian Mian, a Chinese author, has sued Google in Beijing “for an apology and 61,000 yuan ($8,921) for publishing part of her novel, Acid Lover.”

Though the trial is to be held tomorrow, it seems that Google is not very concerned –”Candy,” one of Mian’s books,  is still accessible from the Google Book Search Website.

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Cybersquating Law

What is Cybersquatting?

“Cybersquatting involves the registration as domain names of well-known trademarks by non-trademark holders who then try to sell the names back to the trademark owners.”  Sporty’s Farm L.L.C. v. Sportsman’s Mkt, Inc., 202 F.3d 489, 493 (2d Cir. 2000).

What is the purpose of the law?

The Anti-cybersquatting Consumer Protection Act  “was passed ‘to protect consumers and American businesses, to promote the growth of online commerce, and to provide clarity in the law for trademark owners by prohibiting the bad-faith and abusive registration of distinctive marks as Internet domain names with the intent to profit from the goodwill associated with such marks . . . .’”  (S. Rep. No. 106-140, at 4 (1999)).

How is cybersquatting proved?

To prove cybersquatting, a plaintiff must prove four elements:

(1) Defendants registered, trafficked in or used a domain name;
(2) that was identical or confusingly similar to Plaintiffs’ mark;
(3) Plaintiffs’ mark, at the time Defendants registered their domain name, was distinctive; and
(4) Defendants committed these acts with a bad faith intent to profit from Plaintiffs’ mark.

15 U.S.C. § 1125(d)(1)(A)

Case Examples

Hamptons Locations (2009).

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Funding for “Artful Narrative and Documentary Films”

Via A Filmmaker’s Life, today I came upon Cinereach, a company that awards $500,000 in grants to “artful and narrative documentary film.”

The 2010 Grant Cycle apparently begins soon:

2010 Winter Grant Cycle

  • Letter of Inquiry Submissions Open:October 15, 2009
  • Letter of Inquiry Deadline: December 1, 2009
  • Full Proposals Requested from Selected Applicants:January 2010
  • Grant Awards Announced: February 2010
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Why Mailing Yourself Something Does Not Amount To Incontrovertible Proof of Copyright: A Tale of Copyright Fraud

envelope

Though sending yourself mail can be fun, it will do little to protect your copyrightable works.

One of the biggest misconceptions in copyright law is that mailing yourself your own work (e.g., a screenplay or CD of music) will establish a copyright.

I was once at a Volunteer Lawyers for the Arts meeting where this issue came up. The crowd was almost ready to mutiny on the lawyer answering questions because he said that mailing yourself something was not proof of a copyright. The crowd shook their fists at him and anger and asked how something as reliable as a sealed envelope could be ignored by courts.

A recent case shows why this “poor man’s copyright” is not good evidence to present in court.

A man, let’s call him Mr. Smith, took his son to the movies to see “The Cell,” and was surprised to find that the film had infringed the copyright of a screenplay he had written in the early 1990s. As proof, Mr. Smith presented “two sealed envelopes, one postmarked April 1995 and the other November 1996, allegedly documenting the poor man’s copyright of ‘Inner Mind’s Eye’” (the title of the script he had written). Mr. Smith hired an attorney and demanded $250,000 from New Line Cinema. When Mr. Smith and his counsel met with attorneys from New Line Cinema, inconsistencies in Mr. Smith’s claim started to come out:

[New Line Cinema] also confronted Mr. Smith with references in “Inner Mind’s Eye” to Banning Lake and Bakerfield, which are in California, although claimant’s work actually was set on Long Island. Mr. Ferber classified these as “the thumb print of the infringer”, a term of art used in copyright infringement cases: if the work that one thinks has been copied shows an error that logically would not otherwise be there, frequently that is an error that was taken from the original work that was copied from and not changed or corrected. Here, “The Cell” script originally was located in the Midwest and, in 1998-99, the location was changed to California. Yet, Mr. Smith neglected to change the location references, and “Inner Mind’s Eye”, which took place in Suffolk and Nassau Counties, had a reference to the Midwest and references to places in California. Mr. Ferber also confronted Mr. Smith with the misspellings and mistakes which appeared in both works; Mr. Smith could not explain these duplicate identical errors.

At this point, Mr. Smith’s attorney realized the claim was fraudulent, and informed the district attorney, and Mr. Smith was arrested and charged with three counts: (1) criminal possession of a forged instrument in the second degree (2) attempt to commit the crime of grand larceny in the second degree, (3) attempt to commit the crime of grand larceny in the fourth degree. The court convicted Mr. Smith on the first count.

This case is a perfect illustration of why a copyright system would not function if mailing yourself something established incontrovertible evidence of your ownership of a copyright. Anyone can mail an envelope to themselves and then later open the envelope with steam and replace the contents (or use priority mail tape, as was the case here). Registration with the copyright office, though more expensive, is the best evidence of your copyright; mailing yourself something is no replacement for registration.

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