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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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The Sale of a Painting Gone Wrong Pt. 2

Earlier, I wrote about the Van Damme v. Gelber case decided on July 27, 2009. One of the interesting aspects of the case is that the issue of timing arose. The seller insisted that the money for the painting had to be received by a particular date. Because of a bank mistake, the money arrived after the date specified.  One’s initial reaction may be that this is a breach of contract; however,whether a missed deadline in a contract amounts to a breach will depend upon whether time is “of the essence.” If time is not of the essence, then the court will not consider the missed deadline a breach.

The easiest way to make time of the essence in a contract is to use the phrase “time is of the essence.” In the absence of such language, however, the court may look to other factors or apply a bright line rule. For instance, when seeking specific performance, (an action in equity) the default rule is that time is not of the essence unless the parties state otherwise. 1776 Associates Corp. v. Broadway West 57th Street Assoc., 585 N.Y.S.2d 316 (1st Dep’t 1982). When seeking damages, the rule is reversed: the court will presume the parties agreed that time was of the essence. The court may also look to the terms of the contract to determine whether the parties wanted to make timing an express condition; that is, did the parties really intend to make timing a central condition of the contract, or did they merel append a time to one of the conditions to be performed, such as payment?

In this case the court held that time was not of the essence, and the buyer’s failure to deliver the money to the seller in time did not affect their contract:

Gelber [the seller] also contends that he need not deliver the Painting (or pay damages) because the purchase price had not arrived on or before February 7, 2007. As discussed above, that argument lacks merit because the parties had not made time of the essence, and, therefore, Van Damme [the buyer] had a reasonable time within which to perform (see e.g. ADC Orange, Inc. v. Coyote Acres, Inc., 7 NY3d 484,supra), which he did. That the parties did not intend to make time of the essence as to payment is also indicated by the language in the Contract that: “Title to the Work will not pass to Purchaser until Seller and/or Seller’s Agent has received and collected payment of the Purchase Price in full.” The use of the word “until” indicates that the only express condition was payment of the purchase price in full (see MHR Capital Partners Presstek, Inc ., — NY3d —-, 2009 N.Y. Slip Op 05200 [2009] [use of terms such as “if,” “unless,” and “until” constitute unmistak- able language of condition] ).

The opinion is here.

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Recap Firefox Extension for Pacer

There is this thing called “PACER.”

pacer

It’s essentially the federal court’s document filing system. Any person can register for the service and then search for and download documents related to a case such as the court filings and the court’s opinion. There is a catch however: the service costs 8 cents a page. This may not seem like a lot, but users are charged not only for actual .pdf downloads, but for searches as well. If you were to make a search that resulted in thirty pages of results, you would pay for those pages. This means that the costs will be especially onerous for the press.

Many have criticized the court system for this policy, particularly in light of the fact that the fees produce a substantial profit. Pacer has not kept up with technological innovation. For a good background article on pacer, check out this Ars Technica article.

Now there is a Firefox extension called “Recap,” that will automatically upload documents accessed on acer to public websites, and will alert the user when a document has already been uploaded. To download, the extension, click the link below:

recaplogo-beta

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New York Supreme Court Denies Fraud Claim Over Sale of Gauguin’s Paysage aux Trois

gauguinpaysageMandarin Trading purchased Gauguin’s Paysage aux Trois for $11.3 million based on the appraisal of a world renowned Gauguin expert. Mandarin later came to find the painting was worth only $9 million, and the appraisal on which it relied was written by the company that in part was selling the painting. Mandarin sued, but a divided New York Supreme Court found that Mandarin could not sue for fraud because the appraisal was mere opinion and, because the painting was sold through middlemen, the selling/appraising company never knew about Mandarin and could not be held liable.
Read More »

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The Sale of a Painting Gone Wrong, Pt. 1

Multi-party litigation.

Multi-party litigation.

A recently decided New York case contains several interesting lessons for art dealers. First, you may be liable for the acts of another: if you authorize someone to sell a painting for you, or if you even “reasonably give the agent an appearance of authority,” you will not only be liable for the agent’s contracts, but you will be subject to the jurisdiction of the same courts as your agent. Second, if there is a deadline in your contract and the other party misses it, it may not be a breach of contract. These issues arose out of the sale of the Gerhard Richter painting “A.B. Diffus,” which was owned by Nahum Gelber.

In December 2006, Gelber told his agent, Gasiunasen Gallery, that he was interested in selling “A.B. Diffus” for €2 million. Read More »

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Salinger Article on State Bar Blog

The publishers of the State Bar's Entertainment Law Blog hard at work publishing my article.

The publishers of the State Bar's Entertainment Law Blog hard at work publishing my article.

An article I wrote about the Salinger v. Colting case has been posted on the Entertainment, Arts, and Sports Law Blog of the New York State Bar. The article is here.

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