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The camera has been arguably one of the most disruptive technological advancements in art history. From the first cave paintings, art was used to tell stories and record historic events. Then roughly 150 years ago, the camera changed the way we captured the visual world. Suddenly art wasn’t the only way to depict historic events, people, and places. The camera was able to capture all of these moments with amazing precision.

Louis Meisel, President and Director of Louis K. Meisel Gallery in New York, tells us that the introduction of the camera coincided with the beginning of the Post-Impressionist movement. He sees the camera as having enabled the Impressionists to evolve their style. Over time, the academic art world loosened its restrictions on what was acceptable in fine art. This explosion of styles continued until we see the Abstract Expressionist movement in the 1950’s. By the late 50’s and into the 60’s, we see a resurgence of Realism. This in turn led to pop artists like Warhol, Lichtenstein, and other now famous artists.

It was the early to mid 1960’s that saw an increasing amount of work being created directly from postcards and photographs. As the work increased in technical detail, the Photorealist movement was born.

This is where the story of the disruptive camera comes full circle. Now painters were using information captured by cameras to reproduce it. But the art world was reluctant to accept this new form of painting. And no art schools were teaching students how to produce Photorealism. Some even considered Photorealism to be the return of artistic restrictions that had been shed away so many years before.

From the beginning, Meisel has always been a supporter of Photorealism – or what he and others call Postmodern Realism. In his recent talk with One Art Nation, he walks us through Postwar art history in a way that is both imaginative and informative. His closing words are those of wisdom.

In a world that increasingly worries about the future value of art, we should instead concern ourselves with what the art actually looks like – and how the work makes us feel. Before the financialization of the art market, and long before the camera, this is how most people saw art.

To hear more from Louis Meisel on Photorealism, check out our video on WHO IS A PHOTOREALIST AND WHAT IS PHOTOREALISM? Watch Now!

As the art market becomes bigger, faster and more complex, acquiring the services of an art advisor is a great way to navigate the murky waters with confidence. Javier Lumbreras, CEO of Artemundi Management, shares his expertise on collecting for passion and investment, and the increase in demand for art investment products.

What is the difference between collectors vs. investors?
Art collecting is an insatiable passion. It is also a reflection of personality, taste, satisfaction or naïveté. On the other hand, art investors buy with the expectation that an artwork will be revalued as time passes. Investing in art is a one-of-a-kind way to invest in something that’s both portable and personally gratifying. It is also a good hedge against inflationary periods as currency fluctuations are a good asset protection tool. When investing in art, each discipline has its own strategies and each strategy is a collection of different interests and budgets along with varying ways to look at given investments over time. You can also focus on a single artist in relation to others of a particular artistic movement, but in this case, the personal taste doesn’t influence the decision during the acquisition process.

What is your response to those who say that reducing art to a transaction misses “the point” of collecting?
“The important part of collecting art is the education modality, and it is this that drives the transactional modality.” Why deny it? Art collecting is an insatiable passion. Each piece is unique, a sought-after, hard-to-find prize. Being dedicated to collecting can be so satisfying that is can become an individual’s very reason for being. Nevertheless, one must differentiate passion that predominates in art collecting against the rational investment focus dominating in art funds.
From a rational objective perspective, art funds are investment channels conceived as a hedge against inflation, unstable economies, stock market breakdowns and currency fluctuations, while simultaneously producing effective investment returns. They converge each transaction, not only to add portfolio balance (risk diversification), but also to maximize the Sharpe Ratio (return/risk) and to achieve the right combination between short term and long-term liquidity. That is why Deloitte’s and ArtTactic Art and Finance Report 2016 presented that 27% of the wealth managers considered that they have noticed an increase in demand for art investment products from their clients (up from 20% in 2014).

Should lack of liquidity compared to most other traditional financial vehicles be a concern for investors?
It is a natural concern for any investor allocating capital in art to consider its relative illiquidity when compared to most traditional financial vehicles. However, art’s qualities as an investable asset overcome any liquidity matters because of overall long-term benefits in an investment portfolio. Art is an illiquid asset because selling an artwork is not an immediate process and usually involves a complex process to complete a transaction between a buyer and seller. It is precisely its illiquidity that makes it a safe and lowly volatile investment vehicle when compared to traditional investment instruments. This specific characteristic is what makes art such an attractive asset to portfolio managers because of the low correlation with financial instruments. Moreover, in the art market there is a practical impossibility of a collective panic situation, as opposed to stocks that can suffer from a double-digit decline in a single session. For example, we can recall art’s stability was demonstrated during the 2008 recession, when art indexes dropped 4.5%, while the S&P abruptly dropped 37.5%, not to mention that the art market also recovered faster than the stock market. In 2010 the All Art Index increased by 22.6%. In 2011, it grew 10.2% compared to 9.1% for equities.

What is the role of the art market in the current economy? How are art funds performing?
Art funds are a natural market evolution that leads to greater market efficiency and transparency. Funds apportion and reduce the risks of investing in art, unlike what occurs with an independent collector, by way of conforming a diversified portfolio. Funds are also efficient, as they reduce the transactional costs associated with the asset and achieve important economies of scale. Art funds, as an institutionalized art-investment vehicle, brings transparency to the market through rigorous due diligence, arm’s length transactions, and fiduciary duty like no other professional in the art industry.

Furthermore, art collectors see a benefit in art investment funds as a way of gaining broader exposure to the art market. A well-diversified art portfolio, covering works from the Renaissance to contemporary, generates an interesting risk-return balance. Each period has its own characteristics and a different investment profile. For instance, ancient painting has a slow but solid growth, while contemporary art might have a rapid but risky growth. In sum, funds apportion reduce the risks of investing in art, unlike what occurs with an independent collector, by way of conforming a diversified portfolio. In making investments, Artemundi maintains a diversified portfolio to be held for long-term price appreciation, as well as a limited inventory for short-term trading. Proper market analysis also helps to significantly reduce investment risk through the power of expertise and knowledge.

What’s your final tip for those interested in investing in an art fund for the first time?
As the art market becomes bigger, faster and complex, the potential investor should search for a more institutionalized third-party with proven track record and an impeccable reputation such as Artemundi. Reliable and professional art advisory enables fresh consumers to navigate the murky waters with more confidence. Connoisseurship is developed by seeing as much art as possible, both the good and bad. It involves a tremendous effort to keep moving around the world through the art fairs, auctions, museum and gallery exhibitions to keep up with the market and keep sharpening your connoisseurship. The more you see, the sharper your eye becomes, the deeper your understanding develops and the easier it gets to identify the best trustworthy opportunities. Art connoisseurship eventually becomes not just a profession, but a way of life.

Looking for a reputable art advisory? Contact Artemundi.

Not the animal, but an anonymous group of radical feminist female artists known as the Guerrilla Girls.

In 1989, the Modern Art Department of the MET’s public collections had less than 5% of works produced by women. And yet 85% of the nudes were of females.

Gender and racial inequality is an issue that the Guerilla Girls have been focusing on for a long time. Formed in New York in 1985, they have employed highly disruptive tactics in their push to see greater representation of all races and identities. Despite a lot of ruffled feathers in the art world, New York has arguably benefitted from this activism. And there are countless others whose proactive work has fostered an inclusive environment in the New York art scene. The city now sees art from a broader range of ethnicities and cultures including Asian and African. That being said, more progress is still needed; female artists still make up less than half of major museum exhibits.

Another important shift in New York’s cultural scene is an increased interest in art. Today there are more art fairs than ever and attendance at museums and galleries is at an all-time high.

Suzanne Julig is a member of the senior management team at Sotheby’s Institute of Art as Director of Summer Study Program in New York. She sees this shift not only happening in that city but also globally.

By far the largest shift in the cultural fabric of the art world is due to the Internet and social media. Whichever city you’re in, they’ve changed the way art collectors and artists share and appreciate work. Across boarders and cultures, artist and collectors are connecting like never before.

But there is a downside. Isaac Aden, artist and senior curator at KuBe Beacon, explains that while viewing work online can be wonderful, it is never the same as seeing the work in person. This is so true. Since so much art is physical, seeing it in person not only allows the viewer to experience it in greater detail, it also allows for a greater connection to the artists who have poured their souls into it. Which is exactly what the Guerilla Girls have been doing in New York since the 1980s. Pouring their souls and energy into a cause that has arguably shifted the cultural landscape of New York and, to a degree, the world. And this shift was started long before the Internet as we know it even existed.

Join Art Advisor, Suzanne Julig, Gallery Owner, Ethan Cohen and Artist/Curator, Isaac Aden for a lively discussion of the changing face of New York’s cultural scene. Watch Now!

Estate planning involves more than drafting a will and good estate planning and administration involves a variety of skills: a collaboration between the artist and his or her advisors.

Over the years that I have been involved in advising artists, writers, and other creators with respect to the planning of their estates, two of the most difficult decisions for many artists is who will be in charge of managing the artist’s legacy and the artistic assets left behind and who or what is the beneficiary of the estate’s assets- a foundation, a trust or heirs.

As the artist Betty Woodman noted, “It seems there are two things to be concerned about- the wellbeing of the person to whom you give the property and the wellbeing of the property (art).” Many artists are concerned that the family member may not be interested in developing the artist’s legacy, or may not be competent to do so, or would be unduly burdened by the obligations imposed upon them to probate and/or manage an artist’s estate. For that reason, I found the largely anecdotal article by Robin Pogrebin in the New York Times entitled, “Decision Time for Aging Artists” on January 31, 2017, misses the forest for the trees.

For those charged with structuring and managing an artist legacy, the most difficult choice is not necessarily whether to choose an auction house or gallery to represent the estate. The most difficult choice is who will be named in the will if there is one, or by the court if there is not, to collect and sell the estate’s assets, pay the estate’s debts and collect any money owed to the estate and administer and manage the artist’s legacy, including his or her art, intellectual property, and personal archive.

This is the executor. In addition to these various functions, the executor follows the artist’s instructions in the will which may include creating a foundation, selling works at auction, or entering into relations with a gallery. The fundamental duty of the executor is loyalty to the beneficiaries of the estate, or as Peter Stevens, executive director of the estate of David Smith noted, “Choose someone with the most expertise and the least amount of self-interest.”

A Visual Artist’s Guide to Estate Planning states, “Above all, make your executor and any advisors aware of your priorities; choose people who are knowledgeable about the art world and sympathetic to your work, and encourage them to seek advice from other experts whenever necessary.”

A competent and trusted family member should be named as the executor or executrix (the feminine) unless the person has expressed a desire not to be placed in this role or because the person is not competent either by temperament or mental state to be in charge of the artist’s estate. All too often there is a tendency to look to an artist’s trusted professional advisors, the artist’s gallery, the artist’s accountant, or the artist’s lawyer to serve in the role of executor. Absent very specific factors and conditions, such as long-term professional relationships and the lack of any reliable family member to list a few, a family member should be preferred to these professionals. That family member can then hire competent professionals and advisors, including the artist’s gallery. It is at this point where it becomes important to evaluate any long-term artist-gallery relationships, the capacity and commitment of the gallery to working and developing the artist legacy, or the prior long-term relationship held with the gallery.

As auction houses are presently constituted, with their focus primarily on sales of works of art consigned to them by collectors, and for auction or private sales, would not be a first choice to manage an artist’s estate or as the beneficiary of the artist’s assets. Notwithstanding Sotheby’s Amy Cappellazzo’s claim: “We’re not an auction house […] We’re an art business,” whether an auction house can transform its culture into the “care and feeding” of artist’s estates remains a question.

Galleries, unlike auction houses, do more than sell works of art: Galleries, particularly those who have long-term relationships with older artists, committed to an artist’s legacy, may undertake catalogue raisonné; organize exhibitions in the gallery and with museums; prepare publications and archives; and have a strategy which may include buy in of artist’s works at auction.

A second major concern for artists is setting priorities as to who will benefit from the assets of the estate. For the artist whose primary mission is to preserve and create a legacy either solely benefiting the artist and his or her professional reputation or the artist’s reputation and his or her philanthropic goals, the “artist endowed foundation” may be the vehicle of choice. Such foundation may be a private foundation or a private operating foundation. The foundation must be funded with sufficient assets to fulfil its mission and unless a board of directors dedicates enormous sweat equity, for example the Estate of Ree Morton or the Dorothy Dehner Foundation, less than two million dollars in assets may prove an obstacle.

The difficult choices posed by Ms. Pogrebin are left to the expertise of trustees or directors who are often familiar with the art world and its players. These individuals advise on or hire others to advise on catalogue raisonnés, auction sales, and appraisers. Control, however, rests with those most identified with the artist’s interests.

Transactions with both galleries and auction houses who are involved in direct management of estate or foundation assets pose numerous conflict of interest issues which require transparency and oversight. Unlike the conflict of issues which may be raised by direct involvement of a gallery or auction house as the executor, a gallery or auction house may not be absolutely prohibited under state conflict of interest rules from participating. See “The Many Facets of Conflict of Interest” in Ethics and the Visual Arts.

Every artist, however, has an estate plan–either one imposed if the artist dies without a will or one of his or her own careful deliberation and planning. For artists whose oeuvre may not support a foundation or who simply do not wish to create one, the Artist’s Legacy Project offers a solution, if the artist is accepted.

Legacy Artists are painters and sculptors whose estates have been accepted by Artists’ Legacy Foundation’s (ALF) board of directors and entrusted by the artist or artist’s heirs to the Artists’ Legacy Foundation in perpetuity.

For example, since receiving founder Viola Frey’s bequest, the Artists’ Legacy Foundation has enhanced her legacy by supporting and promoting the exhibitions at museums and galleries. The website states,

“Beyond facilitating museum and gallery exhibitions, the Foundation organizes, stores, conserves, and insures all of Frey’s artwork and is creating a working database to make information about her artwork readily accessible; ALF has commenced a long-term project to produce the Frey catalogue raisonné and is organizing the artist’s papers and other archival materials to make them available and accessible to researchers, scholars, and students.”

The model for legacy preservation adopted by ALF also serves as a model for artist-endowed foundations.

Founded in 1985, the Hoffman Law Firm is the preeminent art law boutique, recognized globally by artists, galleries, countries, collectors, museums, creatives, and explorers as the leader in the field of art, sustainable cultural heritage, and intellectual property law.

* © 2017 Banco de México Diego Rivera Frida Kahlo Museums Trust, Mexico, D.F. / Artists Rights Society (ARS), New York

The 2016 Art & Finance report comes at a challenging time for both the art market and the wealth management industry. With art market growth showing signs of slowing toward the end of 2015 and in early 2016, combined with slower economic growth, increasing volatility in the financial markets, and geopolitical uncertainty, the picture is becoming more complex and unpredictable. Maybe it is exactly this uncertainty that draws people toward art, and as this report shows, the awareness and motivation for including art in traditional wealth management are becoming increasingly apparent, although not without its own set of complexities.

39 key opinion formers, representing different key stakeholders in the market, express their expert views on what they believe are opportunities and challenges for the art and finance industry now and in the future.

Presented by Deloitte and ArtTactic, view the Art & Finance report here.

This is the advice from Annelien Bruins and so many other seasoned professionals in the art world. Bruins has worked for over 15 years in the industry and has advised and managed private and corporate art collections around the world. For emerging artists’ work, Bruins believes that collectors should buy what they’ll love and want to live with.

True, some very savvy collectors are able to spot great art investments, but for the most part, this is not the case.

Emerging artists typically don’t have a large breadth of work making it difficult to tell which direction their artwork will take. Furthermore, unlike established artists, emerging artists almost never sell in the secondary art market (international galleries, auction houses, etc.). The silver lining is that the work is more affordable and there’s a lot of it to fall in love with.

There is a huge volume of work from emerging artists. So much of this work includes ideas, narratives, and perspectives; it isn’t just the artists’ work but also the artists themselves that many art collectors take interest in when making a purchase. Jacqueline Towers-Perkins, a Post War and Contemporary Art Specialist, advises everyone to check out art fairs, attend gallery openings, and visit museums. She sees many opportunities for people to educate themselves.

One of the biggest opportunities is the ability to meet the artist in person. It’s something that many collectors do – especially with emerging artists. This is because you can often do a studio visit and learn more about the process and inspirations behind the work. There really is no better way to form a connection.

There are many art fairs, galleries, and museums with amazing work all over the globe. So get out there and check it out. You’ll learn, experience, and probably discover something you absolutely love.

For more hands-on guidance on how to assess emerging art – before you buy, check out our video on Emerging Artists: A Popular Entry-Level Market for Buyers. Watch Now!!

2016 year was a pivotal one for the art and auction world. Saatchi Gallery held its first all-female show in January. David Bowie’s death rendered him one of the most talked-about collectors of the year. The news of the Brexit vote in late June caught the world by surprise, and caused a rippling of concerns across stake-holding nations. The sale of Claude Monet’s Grainstack for $81.4 million in November underscored that even in an uncertain market, collectors will vie at the top level for superior quality.

The Art Market Forecast 2017 presents an overview of art market trends that Artemundi Group have identified to be forecasted in this year. Read the full article here!

For many, art is treated as a commodity and a financial asset. In fact for the past 35 years, much of the growth in the global art market has been the result of the ‘financialization’ of art – art being used as a store of value.

And yet if art is a commodity, it is unlike almost any other commodity in the world. Specifically, it cannot be mass-produced. The closest thing to mass production of art would be a lithograph or a print, which they themselves are often limited in their runs. Furthermore the volume of great art is limited by the ability and time that it takes for great artists to produce it. And even the number of great artists to emerge on the global scene is limited by a variety of factors. This is the other world that art occupies. It’s a world that’s so different from other industries, which makes predicting the growth of the art market quite difficult.

Like any market, art is susceptible to cycles. At its recent peak in 2015, the global contemporary art market was estimated to be around $65 billion. By the end of 2016, the market contracted by several billion with an estimated value between $62 and $60 billion. Michael Phillips Moskowitz, an Entrepreneurship Fellow at Harvard’s Kennedy School of Government, breaks these numbers down for us. According to Moskowitz, just over 200 influential families control half of the global art market, while roughly 3,000 deep-pocketed collectors control and influence the other half. Other than these two groups, there are approximately 30,000 people who, as Moskowitz puts it, “display outwardly and demonstrable inquisitive intent.”

However the $60 billion figure does not include the entire art market. Thomas Galbraith, Partner at The Petraeus Group, consults with start-ups and companies in the luxury and art markets. Galbraith sees great appetite for art among what we might call “more casual collectors”. He believes we’ll see increasing inclusion of this segment into the greater global art market. Galbraith highlights Etsy, Exhibition a, and art.com as sources of market activity that is not included in the $60 billion global art market figure.

Another promising trend in the art world involves transparency. Today’s collectors are increasingly becoming more educated and informed on work prior to buying or selling art.

This results from a growing trend of art services providing market data and analysis for collectors. Companies like Auction Club, Artnet and others are making it easier for collectors to explore, learn, buy, and sell art.

Thankfully, the increasing prevalence and access of information is helping casual art collectors keep both feet planted in reality.

For more insight into contemporary art market trends, watch this discussion on Looking ahead. The Contemporary art market in 2017. Watch Now!

Taxes are waiting for you around every corner. In fact, sales taxes vary by state and rates can reach 10% of a selling price depending on the city/state combination. Whether you’re an art buyer or seller, ignoring these taxes is never a great idea.

The key to understanding how taxes are applied is something called ‘nexus’. No we’re not taking about the boarder entry pass.

Nexus is the term used to describe the necessary connection an entity must have for it to be able to collect a tax. This means that some contact between a retailer/seller and the state must occur. Examples can include any employees or independent contractors working in the state, regular travel to solicit sales, ownership or rental of property (including inventory and equipment) and participation in trade shows. If a seller checks off any of these boxes they have created nexus.

Once nexus has been established sellers are required to register with state tax authorities. For any seller, this is a good time to be honest on your tax forms – the sweat inducing word audit comes to mind.

But let’s say you’re not a seller but instead an art buyer. When you purchase something in one state and then use it in another you often trigger a “use tax”. Maybe you purchased from an out of state vendor, ordered online or over the phone or you bought art out of state or country. As Mary Pat Kohberger of Deloitte Tax LLP points out, some states have a “use tax” entry on individual income tax returns for state residents. Others have individual forms that must be filled out separately. It’s important to note that many states are clever and monitor shipments traveling through customs. There’s that word again, audit.

The take away is that art buyers and sellers should always do their homework when buying art. Just because you haven’t paid tax on a piece of art does not mean you’re off the hook.

But on the other hand, as Kohberger points out, you might find that you’re eligible for tax exemptions. The key is to educate yourself and/or find an expert to help. US tax laws vary state by state – which means there are a lot of varying tax laws.

Whether you are an art buyer or a seller, check out this webinar on Sales and Use Taxes to learn more. Watch Now!

Storage, conservation, and cataloging needs create special problems for the visual artist’s estate. It is important to separate artistic property from other physical possessions. — Barbara Hoffman, Attorney

I am frequently called upon with respect to the planning of visual artist’s estates, particularly as it concerns the development and preservation of the artist’s legacy. Whether creating artist endowed foundations during the artist’s lifetime or planning for a legacy after death, preserving a legacy will involve management of intangible assets such as copyright as well as the physical body of work left behind.

The Internet has the ability to make exhibitions and archival material available to a global public. Artists, artists’ foundations, artists’ trusts and estates and archives may hold valuable intellectual property assets, which with careful management can promote the artist’s reputation, provide revenue streams, and benefit society by providing visual images for study, research, and education.

For example, the Willem de Kooning Foundation in its public 990 tax form for June 2006 derived $44,579 from licensing royalties. The 990 describes how its revenue-raising activities are related to its exempt purpose. The foundation states, “Royalties from the licensing of reproductions and/or publications of Willem de Kooning constitute some of the means by which the Foundation currently accomplishes its exempt purpose. Its exempt purpose is to preserve the artwork of Willem de Kooning, and provide access thereto; to create and maintain an archive of artworks and reference papers relating to Willem de Kooning and provide access to the archive to scholars for research; and to educate the public about the art of Willem de Kooning and art in general.”

The “mother” of licensing foundations is The Andy Warhol Foundation for the Visual Arts. Since 2004, The Andy Warhol Foundation for the Visual Arts has seen significant growth and development in its licensing program.

Licensed products designed from Warhol images have appeared in prominent publications such as Italian Vogue, Interview, and i-D Magazine. The foundation was nominated for International License of the Year by the Licensing Industry Merchandising Association, competing against major properties such as Harry Potter and Spider Man. The line of Andy Warhol products, including clothing, housewares, stationery, and other items, is well established and successful in Europe, and will soon move aggressively into the North American market with a new line of products for the home. Annual revenues from licensing are estimated at approximately $19 million per year.

Copyright and other intellectual property rights should be specifically discussed and addressed in any visual artist’s estate plan with respect to the dual benefits of minimizing estate taxes and building a legacy. As I use the term, “visual artist” includes those who create images—photographers, painters, multi-media artists, graphic artists, computer artists, performance artists, and filmmakers. There is no one correct solution. Strategies will in part depend on the medium of expression, the importance of licensing to the medium, and whether works exist in editions, are intended to be unique, or are plans for yet unrealized works.

Some Thoughts on a Checklist for Copyright and Intellectual Property Management in Estate Planning and Administration:

• Inventory copyright interests and other intellectual property assets; record all assignments, exclusive licenses, nonexclusive licenses.
• Create art image and likeness usage checklist for prospective licensees/usages.
• Plan for unified management of artistic and intellectual property and identify future owners of artistic property, secondary materials like journals, photographs, letters, and copyright interests in both categories.
• Consider various options for copyright licensing management.
• Consider moral rights (statutory and contract).
• Create organizational  documents for foundation, basic licensing forms, artist/gallery consignment agreements.
• Seek out and enter into agreements with art critics, art historians, or galleries for preparation of catalogue raisonné of all or part of a body of work.
• Provide testamentary instructions and guidance concerning copyright exploitation of works of art in the estate.
• Consider contacts with museums as recipients of works and archives.

Determining the copyright status of works created before 1978 may prove complex; however, normally, an artist’s foundation or estate will own the copyright in works created after 1978, unless the work was created as a “work for hire” or the artist assigned the copyright in writing or published the work without notice prior to March, 1989, and failed to correct the omission as permitted by the 1976 Copyright Act. Nevertheless, the foundation, estate, or archive must use due diligence to establish the copyright status of works. Particularly, photographic collections may have multiple layers of authorship (i.e., the “author” of the photograph and the “author” of the original work). In addition, certain works of art may implicate rights of privacy and publicity of a depicted subject.

Various Options for Copyright Licensing

Under Section 106 of the Copyright Law of 1976, the copyright owner has the exclusive right to (1) reproduce the work in copies or phonorecords, (2) prepare derivative works based on the copyrighted work (which includes the right to recast, transform, or modify), (3) distribute copies by sale or other ownership transfer, or to rent, lease, or lend copies, (4) perform the work publicly, and (5) display the work publicly.

Ownership of the bundle of intangible rights comprising copyright is separate and distinct from ownership in the work of art.

Under current law, absent a writing expressly conveying copyright, the sale, gift, or transfer of the original work of art does not transfer the copyright in the work of art. Under the 1976 Act, copyright interests can be transferred inter vivos or at death and in whole or in part. For example, a copyright owner can transfer all the rights or one or more of the exclusive rights or a full or undivided interest, or a divided interest in the copyright. A copyright owner may license or assign copyright in the work in a number of ways: by the type of use and/or media, by an exclusive license or nonexclusive license, by territory or duration, to name only a few possibilities.

Many artists’ foundations will have as part of their mission the organization of exhibitions, publications, including catalogues and books, and other activities to promote an understanding of the work of the artist and enhance his or her reputation. Each of these activities involves careful management of copyright.

Digital technology has provided the basis for a number of models for the licensing of images both for profit and not for profit. Artists, their archives, estates, and foundations should carefully review and negotiate any licensing agreements particularly for consistency with the foundation’s mission.

[CAVEAT: The artist and his or her advisors should be wary of any grant of a perpetual license and in any license agreement define precisely and narrowly terms such as “educational,” “noncommercial,” and “publicity or public relations.” Such terms are terms of art and derive meaning from industry practice and context.]

Those who manage and administer an artist’s copyrights should consider and develop a rights and reproduction policy.

If scholars cannot have access to or use photographs of an artist’s work because of excessive usage fee or because of censorship of their writings, scholars and art writers will no longer write about the artist or use images of his or her work.

A version of this article originally appeared in the 2008 Supplement of A Visual Artist’s Guide to Estate Planning sponsored by the Marie Walsh Sharpe Art Foundation and the Judith Rothschild Foundation. You can read the Supplement, as well as the original Visual Artist’s Guide to Estate Planning on Barbara Hoffman’s Website: http://www.hoffmanlawfirm.org/Publications/. See also “Reflections on the Survey and Other Musings on the Management of Artists’ Foundations and Museums” in the 2008 Supplement.

Founded in 1985, the Hoffman Law Firm is the preeminent art law boutique, recognized globally by artists, galleries, countries, collectors, museums, creatives, and explorers as the leader in the field of art, sustainable cultural heritage, and intellectual property law.

* © 2017 Banco de México Diego Rivera Frida Kahlo Museums Trust, Mexico, D.F. / Artists Rights Society (ARS), New York

Pronounce the word “art”, to conjure up the image of an intellectual and sensitive practice reserved only to the upper class and aristocracy. A sacred aura still attaches to the word. Yet the notion of art as elitist is decades out of date. So out of date, in fact, that a new paradigm is emerging, and has been since about the turn of the millennium. The essential nature of art and the importance of creative expression have not changed though, it has just begun to expand and become more accessible and more democratic. As a result, the process by which art is now been commercialized results in a legitimate questioning regarding the massive offer and the necessity of trustworthy art advisors.

This paper examines the art market consequences resulting from art’s democratization and responds to the research leveled by Deloitte’s Art and Finance Report 2016 which states that “The art market is opening up to new audiences –this is the biggest challenge, but is also the biggest opportunity.

Democratization of art does not mean dumbing won; it means increasing access. But at the same time, the increase in the offer makes more difficult to find trustworthy expertise.

To tackle this situation, first, we need to briefly analyze, how we got to this point? The conception of democratized art is at least as old as the French Revolution of 1789. By the mid-1800s, an understanding of museums as educational institutions was attracting increased attention both as a means of countering the social impacts of industrialization and urbanization, and of fostering positive and progressive social change; resulting in the introduction of free admission and open-evenings. The social potential and even moral virtue of engaging with art and museums during the 19th century became more popular between 1895 and 1905 when the narrative of “bringing art to the people” or the democratization of culture emerged in France.

Once again, these ideas were embraced, but this time by the artists themselves during the mid-1900s; though contemporary manifestations of art’s social mission only emerged during the post-World War II economic boom.

The growth of the middle class, in conjunction with postwar immigration and emerging patterns of social exclusion, obliged the state to play a key role in the pursuit of culture’s social mission. Furthermore, artists began inserting themselves into pop-culture and mass media formats for disseminating information and accessing wider audiences, beginning to revolutionize the idea of the art inserted in the everyday life.

The artwork’s unlimited visual exposure given by the museum and Internet’s democratic access maximizes the number of potential buyers, whose ownership desire over the masterpieces raises considerably their price tag. The expanded competition among buyers, the multitudinous offer, and the vastly increased speed of the art market, has led to many of the most active collectors to employ professional art advisors to help them sort out the opportunities and help them to make a decision.

The tradition of advising art collectors is actually quite long and distinguished. Some great art advisors include no only famous connoisseurs like Bernard Berenson, but also great artists like Marcel Duchamp, who helped to build some of the greatest collections such as the Peggy Guggenheim Collection.

Nevertheless, not everything in life is like a bowl of cherries. Since there is no necessity of a degree or license to operate, the art advisory practice is being saturated with unqualified practitioners. As long as good jobs remain scarce, it is likely that more and more people with talent and connoisseurship –and some with the lack of both– will find their calling as art advisors. Occasionally, the art advisor is also an art dealer with whom the collector has a close relationship. There is a growing bank of professional art market advisors, some of whom are former professors, auction house staffers, or even people without any real qualifications except the ability to get along with socialites and millionaires. In Georgina Adam’s book Big Bucks, she quotes “Anybody with an iPhone and a pair of Louboutin’s can call themselves an advisor.

The multiplicity in the art advisory offer has complicated the identification of a trustworthy expertise, which can lead to serious danger to the art investor and collector. One of the biggest menaces of an unqualified art advisor is the possibility of lacking a code of ethics, which might result into information trafficking, or being implicated in a situation with conflict of interest. With this in mind, price manipulation in the art market is easy. A collector can never be sure whether the work is being recommended on its merits, or because of the gallery bonus. And if advisers with a conflict of interest do not disclose it to their clients, they can be legally liable of breaching their fiduciary duty.

With the essentially conflicted nature of the marketplace better understood, as well as the many potential pitfalls of doing business in such an environment, the potential investor should search for a more institutionalized third-party with proven track record and impeccable reputation such as Artemundi, facilitating the identification of trustworthy art advisory.

Reliable and professional art advisory enables fresh consumers to navigate the murky waters with more confidence.

Connoisseurship is developed by seeing as much art as possible, good and bad. It involves a tremendous effort to keep moving around the world through the art fairs, auctions, museum and gallery exhibitions to keep up with the market and keep sharpening one’s connoisseurship. Art connoisseurship eventually becomes not just a profession, but a way of life.
If you are building a collection and require support of an advisor to understand the complexities of the art market, contact Artemundi here.

Whatever the reason for your art purchase, be it passion, financial investment, or a combination of the two, take insider advice from our experts. Here, we offer invaluable tips and techniques for successful collecting, including new ways to enlist specialist advice, utilising technologies and social media for your own research, and navigating art fair etiquette.

Until fairly recently, almost all art purchases, made by both seasoned and budding collectors, followed a fairly standard process, usually from a dealer, gallery or auction house.  It would often involve, at the very least, viewing the artwork in person, and would most likely extend to liaising with experts face-to-face, carrying out research into the market and finally perhaps, performing due diligence before the transaction occurred.

With the rise of art fairs, perceived by many as a more accessible environment, purchases are often predominantly passionate or emotional, meaning that due diligence can fall by the wayside during the shortened progression from the thrill of the chase to subsequent transaction.

In all instances, but especially when buying with a mind on investment, Nica Gutman Rieppi, Manager of US Operations for Art Analysis, suggests three key considerations to take into account.

The first is authenticity, the onus for which is on the seller. For added security she recommends that the sale is made “contingent on authenticity” and noted as such in the contract.

Secondly, condition. Most dealers and auction houses will produce a condition report, however the small print usually specifies that this has not been carried out by a restorer or specialised assessor. For peace of mind, consider taking your own expert, who will check for damages, as well as subsequent restoration. It is worth noting that certain contemporary artists have been known to disown works where their studio has not carried out restoration.

Lastly, material. How has the piece been made, how will the materials interact with each other over time, or age under certain conditions?  Much contemporary art has less traditional media, and understanding how to preserve the essence of the work will also help to maintain value over time.

In today’s art marketplace, there is a likelihood that those considering an online art purchase will utilise either a website, app or social media.

Artworks sold online are often more affordable, but what if the work you viewed doesn’t look the same when it arrives? Jessica Davidson, Director of Sales and Business Development at Bidsquare advises reading the return policy before hitting “purchase”, and stresses that while we are now more comfortable than ever buying art online, physical interaction can’t be replaced.

Gutman Rieppi advises enlisting the expertise of advisors, auction houses, appraisers, and other specialists in the field as it “takes levels of expertise to provide knowledge”. This is where certain developments in the online realm can assist collectors operating at all levels.  Davidson agrees, stating that research is critical, collectors should “leverage online platforms to navigate, whether buying online or from a gallery”. As well as being valuable sources of information, certain platforms, such as Bidsquare, connect users directly with specialists, rather than acting as intermediary.

Social media can be divisive, and never more so than when viewed through the lens of the art world.

On one hand, Davidson sees visual platforms “level and democratise the playing field”. Where traditionally an elite group of tastemakers dictated the market, social media has widened the audience and created a two-way conversation. Art advisor, Lisa Austin agrees, and utilises social media for research purposes, but still relies on her experience, art history training and old-fashioned pavement pounding in order to make informed decisions. While reaching a wider audience is a huge positive, the flip side of the growth of the collector as curator, is that collectors are not necessarily experts and shouldn’t be relied upon in place of those in the industry with proven expertise, such as curators, advisors and specialists.

Both seasoned collectors and those new to collecting find themselves in a fortunate position as art expertise and technology converge.  Not only do we have access to some of the greatest expertise, whether face-to-face or via online platforms, we also have the means to educate ourselves, to follow the artists that interest us, to develop our own eye and to curate our own collection.

By using these tools, investigating what we like, rather than what is hot, Austin firmly believes that it is possible to “become your own expert”.

If you would like to hear more about Habits of Successful Collectors, watch our experts at your convenience. Watch Now!

Why Should You Attend an Art Fair? What’s the Best Approach When Navigating Through a Fair? How is the Accessible Art Fair is Different from Other Art Fairs? Why did You Bring this Concept to New York City?

Join the brains behind the new Accessible Art Fair New York, Maria Van Vlodrop and Stephanie Manasseh, as they provide insights into how to navigate an art fair and get the most out of your experience.

Video recordings from the Accessible Art Fair New York – Art Talks are available to view online at your convenience. Topics cover: Where the contemporary marketing is heading, why emerging artists are a popular market for buyers, how the New York cultural scene has transformed over the years and the do’s and don’ts when it comes to sales and use tax. Watch now!

Just how dynamic is the contemporary art market? Should we expect any adjustments or corrections in the next few years? Who are the top ranking contemporary artists right now? What should first time collectors keep in mind?

Join artnet’s Post War & Contemporary Art specialist, Jacqueline Towers-Perkins, as she provides her perspective on this hugely dynamic market and on buying trends for contemporary artists including leading international artists Ai Weiwei, Damien Hirst and Jeff Koons.

To hear more from leading art market experts, access artnet’s roster of videos on new ways to collect art, the inside scoop on prices in the art world and significant art movements that shaped today’s contemporary art market. Watch Now!

It’s no surprise that failing to plan ahead can have negative tax implications and this includes your art collection. For example, in the US there is a lifetime gift tax exemption of $5,430,000. Or if you decide to give a charitable gift of art, you can be rewarded with a tax exemption. All of these avenues require carful planning as navigating the tax codes can be challenging – especially when dealing with high asset values.

Putting together a team of professionals is key to achieving a great legacy plan

You’re going to need a certified financial planner for any estate planning. But when it comes to art, you should include an art appraiser in the mix explains Xiliary Twil – art historian, collector, and founding valuation expert of Art Asset Management Group, Inc. It can also be helpful to have a curator or gallery involved as these experts can help you decide what to gift, donate, or dispose. Key to this team is an insurance specialist who specializes in art.

Another pillar to your legacy plan is to appoint an art trustee. An art trustee will know which pieces are worth preserving for future generations and which are not.

An art trustee is also going to include the family’s considerations when directing these transactions. This is where talking to your family is key. Find out which pieces of art family members cherish and which ones make their eyes burn.

Maybe one child (if you have any) may love a work that is worth only a few thousand dollars and another child wants to have a work of art worth tens of thousands. You may have to consider the monetary aspects of bequeathing works in such situations.

There is one final step with art legacy planning, and it’s one that anyone can do; buy a good art management program.

This will allow you to catalogue your collection and keep track of all the works and their values. In the event of an unexpected death, your art legacy team and family will be able to account for all of the work in your collection. More importantly your team will work to keep the taxman as far away from your art collection as legally possible.

If you have or are planning to build a collection, our webinar Art Legacy Planning – Life is Long. Art is Longer is worth the watch. Watch Now!

We do it almost without thinking about it, but what does it really mean to engage with art in the digital age, when and how did it originate? Our experts explore how technological developments have influenced art, the art market and museums in recent decades.

One of the earliest and most utilized online art companies, known to those both within in the art business and on the periphery is Artnet. Founded in 1989, Connor Williams of Artnet explains that it originally functioned as a “marketplace for prices”, for results from the major auction houses.

Prior to its inception, art specialists or those wishing to research auction results would have needed to use reference libraries, where catalogues with printed results were, and still are, maintained. In the digital age we now inhabit, not having immediate access to this information online is hard to conceive, but in the days prior to Artnet, this time-consuming, hard copy research was the only way to gather reliable data.

Today, data from somewhere in the region of 1,500 auction houses is available on Artnet, with results dating back as far as 1989. Around the turn of the millennium, a gallery network was added, soon followed by Artnet News, and in 2008, with the advent of online auctions, results for these too were included.

We take for granted that this information is constantly updated online, but it requires a constant and ongoing meticulous effort of thousands of people.

Lucy Redoglia of the Los Angeles County Museum of Art confirms. In the art world, museums were early adopters of new technologies enabling the widespread sharing of information related to their collections via the web. This early advancement can be viewed as both a blessing and a curse.

Artdex founder Jenny Park Adam has worked with MoMA on the digital advancement of what used to be hard copy information only. She has experienced first hand the constant need to update to new systems, as earlier technology and methods become obsolete and so the process starts over from scratch.

Despite the effort involved, Williams feels that the positive outcome of this increased sharing of information is that it “creates transparency”, and therefore democratization within the art world. Park Adam agrees that online platforms can bring people together in the virtual realm, in an industry, like many others, where meeting peers physically is becoming increasingly difficult.

And for those who are interested in art, and seeking to make a first purchase, but don’t feel comfortable walking into an auction house or gallery for the first time, certain platforms are designed to place the right buyers and collectors together with specialists who can guide them.

Where is the future of technology heading, in a world where we have seen the start-up and decline of many online art organizations and apps in recent years? Our experts agree that continuing to combine technology and art should remain a focus and that the art world is still surprisingly fragmented.

Technology can create consolidation, which in turn will ensure that the realm of art online continues to flourish and gain greater credibility and relevance.

Redoglia’s view is that already, social media in the museum world is providing information and virtual access for “those who may never set foot in a museum”. As Park Adam puts it, properly archived information is “helping the physical art world, not replacing” it.

To hear more from our experts, watch the online course New Tools of the Trade now! Watch now!

As the online art market continues to grow, it’s no surprise that we are seeing lots of new players. Allis Ghim from Bidsquare, a curated online auction platform, shares her insights into this dynamic market; where it’s heading, who’s driving the growth, what online tools are available and how businesses are evolving to keep up.

What have we learnt from the online art market in 2016?
A sizable chunk of the art market is going digital. In 2014, online contributed 6% of the $59 billion sold by art galleries and auction houses. In 2015 while the global art market cooled, online sales jumped +24% to a high of $3.27 billion. This growth continues to persist in 2016 and is projected to grow to $10 billion in just a few years. In 2016 we also saw social media surpass traditional venues such as galleries and museums as a buyer’s primary source of discovery. (See last question below for more on this)

It definitely seems like the art market is shifting to online sales. There are several variations of online models out there, and it remains to be seen which one will persist. But overall, I expect the growth trend to continue as more millennials as well as older collectors realize the convenience and power of discovering and bidding, or purchasing art online.

Are we seeing more collectors buying art online?
Absolutely. Online sales jumped +24% last year, a high of $3.27 billion, and half of online art buyers have stated they expect to buy more art online in the next 12 months. The abundance of unique one-of-a-kind art, in addition to the ease of research and acquisition, makes online platforms an obvious choice for collectors eager to pursue their discovery and purchasing journeys in the most exciting and efficient way possible. If the online art market continues to grow at this rate, it’s anticipated to reach $9.58 billion by 2020. Online has expanded to include not just art, but also antique and vintage furniture, design, jewelry, couture and more. Any category that is fragmented and dominated by smaller businesses is ripe to achieve the efficiencies that online provides and attract passionate collectors. At Bidsquare we are seeing triple digit growth in online bidding activity and sales that close online and fine art is one of our largest categories.

In additional to buying and selling art, how are collectors using the web to grow, protect and maintain their collections?
Increasingly, private art collections live their entire lifespan online. Collectors are using the web to research, create, and develop their collections without the need to travel to remote biennials, fairs, and auctions. They are accessing troves of online information about storage and preservation techniques. And they are using digital and web archives to document their investments, ensuring their integrity for generations to come.

How are dealers adapting with the shift away from the traditional model of buying art?
Dealers are important — they accounted for 53 percent of total art sales by value in 2015 but many dealers are still figuring out how to engage online buyers and participate online. Some dealers have limited online resources and simply lack the technical resources and know-how. Others are loyal to the way they’ve always done business because the traditional model still works for them and they haven’t fully grasped how to established an online presence. We expect this to change, given the power of social media, and online marketplaces and auctions, and their ability to reach high-value audiences and generate sales.

Large auction houses, such as Sotheby’s and Christie’s have developed their own online platforms. Online platforms like Bidsquare are leveling the playing field for dealers and auction houses who may not have the resources or time to develop their own online platform or just want a complementary channel to increase their reach online. By giving them an online presence, Bidsquare enables dealers and auction houses to market and promote their items and auctions to an ever-expanding online audience and compete with larger players. By handling the heavy lifting of technology, online marketing, promotion and sales, a platform like Bidsquare allows sellers to focus on what they do best — evaluating, acquiring, and sharing great antiques and art. From the buyer’s point of view, easy access to great art objects and the opportunity to bid for them real-time gives them a strong compelling reason to turn to online for buying fine art and antiques.

What role is social media playing?
Social media is bringing about a sea of change in the way people view and purchase art. Today, more people encounter art through social media than they do in museums and galleries: 44.3% of young millennials and 33.8% of older millennials say they discover art on social media. Social media and mobile are doing a phenomenal job of integrating art into people’s daily lives, and this increased engagement translates into growth in online sales.

Social media goes hand-in-hand with mobile devices, so we are also seeing a surge in the number of people viewing and purchasing art on their tablets and smartphones. In fact, over 36% of Bidsquare’s traffic now originates from mobile devices and tablets.

Hear More from Bidsquare’s Experts

I’m an art advisor – kidding, I’m not. But the truth is anyone can call him or herself one. A qualified advisor is more likely to adhere to strong ethical standards, avoiding thorny issues like conflict of interest. They also handle details like insurers, accountants, and attorneys – as curator of the Hallmark Art Collection, Joe Houston puts it “the unsexy minutia.”

This is where an organization like the Association Of Professional Art Advisors (APAA) is helpful. Because the best advisors will have a deeper knowledge of every aspect of the art purchasing process, including the art itself. Most importantly a great advisor will expose you to work you may not have considered collecting.

Art collecting has been around as long as auction houses like Christie’s. Founded in 1799, it predates the founding of the United States. So it’s surprising to learn that the current art market as we know it is relatively new.

According to Houston, the rise of the art market and the art services industry is only about 35 years old. And this makes sense when you think about the emergence of galleries and blockbuster museum exhibitions as well as the proliferation of new art magazines during this period.

Houston attributes this to the rise of a “new collecting class” in the 1980s. Beyond individual investors, corporations also began building collections as a store of wealth. With so much money being spent on art collection, art advisors suddenly emerged on the scene to act as experts and to help direct and oversee collections.

When choosing an art advisor for yourself, always look at their past experience.

Make sure they are qualified by a reputable organization. A great advisor will spend time educating you rather than simply pushing a quick sale. In fact the best advisors are often with whom you will happily forge long-term business relationships with. This benefits everyone as art collections require special care and the best advisors will have a network of people who will know the best way to conserve your collection.

Anyone can say they’re an art advisor. But only an expert can give you all the information you need to make the best purchasing decisions for now and the future.

Watch the Association of Professional Art Advisors (APAA) Online Talks to learn about additional benefits of choosing and working with an art advisor. Watch Now!

One of the advantages of being an art critic is that you tend to receive an abundance of material to sift through each day, which arrives like clockwork electronically and magically overnight, appearing on my computer screen in the form of hundreds of press releases each morning.

It’s a great advantage to hear from so many galleries and museums on a regular basis, as it’s almost like visiting each show as a fly on the wall, buzzing from one loft to another. There also is a constant flow of publishers’ art-oriented books that come my way, often catching my attention and imagination, but unfortunately, I cannot find the time to read most of them, let alone pen a review. However, one book that drew my immediate attention recently was “Cutting Edge Art in Havana” by ARTempoCuba, a group of art historians, curators and other fine arts specialists who act as a leading resource for literally anyone interested in Cuban contemporary art and culture.

What also got my notice was that the book listed 100 professional artists, including profiles and images, that was an unexpected but delightful discovery for me. Perhaps the final mesmerizing push was that I have been following the amazing work of Cuban artist Kadir Lopez since discovering his work in a West Palm Beach collector’s home a few years ago, and I wondered out loud if I could find him listed in this book. And indeed, I spotted Kadir’s work on its pages; he is now universally considered the hottest Cuban artist in the world, and this prompted my interest in examining other artists in the book, and much to my delight the work represented was indeed first rate.

“Cutting Edge Art in Havana” eventually landed on my bedside table, which is a sure sign that I will get through it someday, perhaps on a rainy weekend afternoon. The more I looked, the more I learned about the remarkable variety and professionalism that these artists demonstrated in a country that is opening up slowly to rest of the world. I once highlighted Kadir in a magazine article about “Artists to Watch,” and was pleased to see him featured in The New York Times a few months later. My beat usually is in South Florida, and when it occurred to me that Cuba was only about an hour’s flight from Miami and finally opening up to visits without restrictions, my wife, Claudia and I, began making plans to finally see Havana. As this was unfamiliar territory, we received a reference to use the services of Havana VIP Tours, a travel agency that turned out to be a godsend as they specialize in arranging private tours of artists’ studios, interpreters, drivers, and historians and suggestions for what to do and where to go. We spent a long weekend there, and it turned out to be an enchanting experience.

The first thing we noticed was how small the airport was to serve a city of two and half million people, but it somehow works, even with the additional flights that are now landing each day. Once outside, bags in hand, we were met by a driver holding up a sign with my name on it as she leaned against her spectacular red and white ‘50s Chevy, which would be our distinguished wheels for the next few days. Under normal conditions it would seem like a big deal to see a car like this on the street in America, but I was stunned to see that many of the automobiles parked in the airport or waiting for passengers were eye-popping vintage vehicles, which seemed at first glance like rented cars for a movie set. If you did absolutely nothing but stand on a corner and watch the constant parade of roadworthy coupes pass by, with impossibly beautiful aged magnificent building façades as the backdrop, your trip would be worth it.

On your way into town, the only billboards are advertising revolutionaries, which serves as a reminder that you are indeed in a very different country with its own rules and regulations and way of living. We didn’t have a problem with anything other than realizing that we just couldn’t see everything on our agenda in only four days. But we were there primarily to visit independent artists in their Havana studios, which I had handpicked in advance from “Cutting Edge Art in Havana.” It’s not possible to mention here all the artists with whom we spoke, but suffice it to say from a man who has spent the last thirty years visiting hundreds of artist studios annually, that this tour was by far the most interesting of my life. I spent a month visiting artists in the then-USSR thirty years ago while it was still a communist country, but nothing could compare favorably with the distinct quality and tropical flavor of Cuba that is really quite astonishing.

Quoting from the book: “Today’s Cuban artist is an interesting subject. With the collapse of the paradigm of ‘State Authorization,’ Cuban artists have been immersed in a constant movement between the local and the global, not only in terms of ideo-aesthetic approaches in many of their creations, but also in terms of how they can afford to comply with the established rules of a global art market abroad, and then break them in their own backyard as they adopt the rules of the idiosyncratic network of relationships that govern Cuban artistic life.”

There is much more to say and to see about why it’s worthwhile to visit Cuba, and I plan to write about it again soon. Until then, I recommend getting a copy of “Cutting Edge in Art in Havana” (Amazon) which lists the top 100 Cuban artists, maps of art districts, choice restaurants and a variety of other points of interest. If this is your first trip, we advocate contacting ARTempoCuba and Havana VIP Tours.

When ‘vandals’ take over the art market.

Up until the 1980’s, street art was mostly considered nothing more than ‘vandalism’. In New York, it was common to see monochromatic subway cars transformed into colourful works of art. All around the city and on public spaces these works were more about expressionism than anything to do with selling art – it isn’t exactly easy to hang a subway car on your walls! And even to this day, the word graffiti can have a polarizing effect on people.

But it was during this era in the 80’s that street art broke into the world of fine art. A major contributor to this movement was artist Keith Haring. During a time when subway ad displays were temporarily empty, it was common for media companies to cover the empty space with black paper. Haring wandered the city searching for these black displays. Before long, his iconic white chalk drawings were appearing all over the NYC subway system. As curator Gracie Mansion points out, it was one of the first times people saw real value in street art; often removing the black paper with its chalk art and selling it.

One artist by the name of Richard Hamilton took this even further. He would actively search out empty ad displays and cover them with archival acid free black paper. Hamilton would then wait for Haring to finish his work only to remove it.

It’s shocking to think that Keith’s work, which was once considered by many as vandalism, is now worth millions of dollars.

Collecting street art still comes with its challenges. Most street artists view their work as public domain and not for commercial use – so put your chisel and sledge hammer away! And besides, these days many street artists go so far as to install their work in such a way that it will crumble or break if removed. Alex Benrimon, Director of Sales at David Benrimon Fine Art, points out that any street art should have a certificate of authenticity. This certificate ensures that the work is actually sanctioned by the artist as being for sale. And Benrimon points out that most major auction houses will issue a certificate.

New York has and will continue to be like one giant gallery.

Wander around the city and you’ll be confronted with all types of street art. This art form has a rich and colourful history and has progressed into a global art movement. The ‘vandals’ have indeed broken into the world of fine art and for this, we all benefit.

Check out the full webinar STREET ART – FROM VANDALISM TO GENTRIFICATION where you can see how street artist Joseph Ficalora, founder of the Bushwick Collective, has transformed a large section of the Bushwick neighborhood. WATCH NOW!

Art auctions are an exciting and accessible way to grow your collection. Offering lots across varying categories and catering to all budgets, attending an auction is a must! Leon Benrimon, Heritage Auctions’ Director of Modern and Contemporary Art, shares his expertise and provides valuable advice on how to buy at an auction.

Who can/should attend an auction?
My advice is that for everyone who can, attend an auction. If anything, just as an observer to start. It’s a fairly interesting and fascinating process that really gives a somewhat transparent insight into the art world which is traditionally held to be an opaque, mysterious, and intimidating. I would suggest attending any auction. Sometimes more regularly scheduled auctions of lower value property prove to be the most interesting and informative. Every auction house is different in that regard.

For anyone who has never attended one of your auctions, what can they expect?
Excitement! For example, at Heritage, there are bids coming in through several different channels, so between live bidders putting their hands up in the room, specialists bidding on the phones and multiple internet bidding platforms, things can get exciting (and sometimes expensive) very quickly. People are welcomed, and encouraged, to attend the exhibitions and auction previews. They are open to the public, no tickets are needed, and some times can be just as interesting as a museum show.

Can someone inspect items of interest prior to the live auction?
Absolutely. I highly recommend inspecting objects in advance of bidding on them if possible. Some auction houses will preview entire auctions or just highlights in multiple locations worldwide to make viewings of works in person easier.

How does the bidding process work?
The bidding process is fairly simple. There are several ways to place bids, some of which are only available during the live auction. Clients can bid on works up to 30 days in advance of our auctions online via an absentee bid which is immediately executed; or online proxy bid, which is executed from the auction floor; or in person by phone, email, fax, mail, or in person at one of our auctions. During the live auction clients can use those same channels to bid live.

What is a “buyer’s premium”? What does “reserve” mean?
The buyer’s premium is a percent of the hammer price, paid in addition to the hammer price. The hammer price is the winning bid at auction. The buyer’s premium goes directly to the auction house and not to the seller. The buyer’s premium is typically tiered, and ranges anywhere from 12 – 25 percent depending on the tier. The reserve is a number agreed to between the seller and the auction house which reflects the minimum amount a work can sell for. It can act as a protective measure by the seller.

For tips on collecting art, watch Leon’s online talk on The Art of Collecting Art at Art Southampton.

To participate at an auction, join Heritage Auctions for their Modern & Contemporary Prints & Multiples Signature Auction in Dallas on October 25. The preview will run from October 22-24.

Technology promises to affect every aspect of the art world.

A great work of art can appear timeless and unchanging, its insight and beauty set apart from the march of time.

The art market paints a different picture. Traditionally hampered by opacity and inefficiency, it is primed for digital disruption — the same sort that has transformed industries ranging from transportation to publishing. A new wave of startups has the art world in its sights, bringing to market products like provenance trackers, collection management systems and virtual-reality gallery experiences.

Silicon Valley has taken note: Twenty-three art-focused startups received $505 million in venture capital in 2015, and art startups have received nearly $1 billion since 2013, according to Deloitte’s 2016 Art & Finance report. That’s a gold rush of activity in a sector that hadn’t received much attention.

For artists, collectors, galleries, dealers and auction houses, the influx of technology promises to affect every aspect of the art world, from the creation of new works to the way masterpieces are vetted, bought and enjoyed.

“As our ability to track the history of each piece improves, it’s going to eliminate a tremendous amount of energy that right now is spent around wondering, ‘Where did this come from?’ and ‘Who previously owned it?’” — Howard Tullman, 1871

“This is going to really drive the democratization of the art market”, says Phillip Ashley Klein, who leads Deloitte’s art and finance practice in New York. “It’s going to allow aspiring collectors — those with traditionally less knowledge and access — to get up to speed quickly. And with the greater access that comes along with more globalization and democratization, savvy collectors will have much more opportunity to see potential deals.”

Here are three ways technology promises to change the art market landscape.

1. Expanded global and remote access. When art was examined and sold exclusively at auction houses, it made sense that art market activity would be concentrated in cities like New York and London. But today, internet-based auction houses such as Paddle8 and Auctionata enable far-flung buyers and sellers to connect with one another, decentralizing and expanding the marketplace.

That has contributed to the globalization of the market and opened opportunities for regional dealers to reach a broader audience. Klein predicts that top-priced artworks will continue to be sold at live auctions, but the vast majority of sales under $1 million will move online. It also puts “pocket listings” — art for sale that’s made available only to a small group of prospective buyers — on the endangered species list.

“The future is going to be 100 percent about transparency and efficacy. It’s about making true global markets where all the information is available and accurate,” says Howard Tullman, an art collector and CEO of the Chicago-based startup incubator 1871.

In the same way, education-focused services, such as One Art Nation, train new collectors and their advisors in the intricacies of the art world, enabling a new generation to quickly learn to discern art market tendencies and negotiate the purchase process. As collectors grow more confident and comfortable with the art market, they are better able to evaluate art purchases as investments.

2. Power shifting to collectors from gallerists. Remember when you read the newspaper or asked a friend about a new restaurant in town? That was before online restaurant review sites. The art world is in for a similar shake-up thanks to a confluence of several trends.

First, virtual-reality technology promises to give more people access to art works in private collections or faraway galleries. Second, data-focused startups such as Aura solicit user comments about art. When a broad base of art aficionados weighs in on new art, some of the star-making power that has long been the exclusive domain of collectors and gallery owners transfers to the vox populi.

“We’re creating a new class of tastemakers,” says Klein. This means an artist or artwork that connects with a mass audience can leverage the new exposure. “That artist can be that next big up-and-comer, even if they don’t have that traditional financial backing or big endorsement.”
Mass audience tools and virtual- and augmented-reality platforms also promise to expand the reach of art, enabling more people to view more work, and build community among fans of different artists and media.

A second class of art-tech businesses aims to apply big data to the art market in a different way: assimilating market trends and past performance to predict the asset value of new works. ArtAdvisor.io, for example, predicts the longevity and influence of artists based on algorithmic analysis of factors such as an artist’s background, medium and critical reception over time.

3. Tracking art and its provenance going digital. Two of the trickier aspects of art purchasing — at least outside of the major auction houses — are tracking an artwork’s provenance and facilitating the transaction itself. Deloitte’s Luxembourg team recently debuted a prototype of a product that could employ blockchain technology (a relative of bitcoin) to reliably track the provenance of a work. Startups such as Athena Art Finance Corp. allow buyers to pay for their art over time using the art as collateral, therefore removing friction from the purchasing process.

“As our ability to track the history of each piece improves, it’s going to eliminate a tremendous amount of energy that right now is spent around wondering, ‘Where did this come from?’ and ‘Who previously owned it?’” says Tullman.

Deloitte’s Klein says the biggest factor driving the art market toward greater transparency may not be technological but cultural: The auction houses and galleries that sell high-end art know they need to change.

“Considered as an asset class, the art market is viewed as obscure, esoteric and nebulous,” he says. “The market realizes that needs to change and that there’s a need for standards and regulation. It’ll take time for these standards to be enforced, but there’s agreement that these changes are needed.”

The article was originally published in Wealth Magazine. View the article here.

The decision to purchase a work of art, whether a contemporary installation, a fauvist streetscape, a folk art masterpiece or a continental porcelain garniture, is a moment that follows an emotional response to the work.

This response can range from desire and fascination to hope and excitement, whether you see the work as an image that can’t be lived without, something that fills the perfect spot in a growing collection, or a way to diversify your investment portfolio.

Unfortunately, often missed in making this decision is an important question: how do I best conduct due diligence before making this investment? Art is the only major asset class where deals are still done on a handshake, people make decisions based on the seller’s reputation, and objects are purchased without having the work inspected prior to the sale (all of these scenarios took place in the Knoedler Gallery’s sale of faux Abstract Expressionist works). However, the sophisticated collector is becoming increasingly educated and realizing how to navigate today’s often opaque market.

As someone who has spent her career answering questions about the authenticity and state of preservation of artworks by studying the presented materials, I can recommend the following questions to consider before purchasing an important artwork:

1. Is the work made with period materials? A 17th century Dutch golden age painter will have a much more limited palette available to the artist than the 19th century landscape painter Jean-Baptiste-Camille Corot, for example. Make sure that the palette of the considered artwork is appropriate to the period, whether buying an oil painting, a pastel, porcelain or even a duck decoy.
2. How much of the piece has been restored? It is estimated that about 20% of what you see in a museum reflects the work of conservators rather than the artist’s hands. This makes sense for objects that are hundreds or thousands of years old, but a large amount of restoration is unacceptable for any purchase unless all of the conservation has been fully disclosed and the price reflects this condition.
3. Is the work a marriage? This is a major concern for period furniture, classic cars, silver, and objects of vertu. It is not unusual for these objects, which were in daily use, to have replacement parts given their original functions, but these parts should be disclosed and again the price should reflect these changes from original condition.
4. Does the work have inherent vice? This means that the work is made from materials such as masking tape, for example, as physical elements that were never meant to have sustained, long-term use and function. Another example is a Naum Gabo sculpture made from cellulose acetate or a mid-century design chair filled with polyurethane foam. These works are made from materials that literally cannot survive into the future. Understanding the question of inherent vice is critical for purchases of modern and contemporary art.
5. Is the work actively degrading? Although it is well-known that textile dyes are highly light sensitive, the field is just starting to understand that the pigments which the Impressionists, the post-Impressionists and the early modernists (including Henri Matisse, Pablo Picasso, Vincent Van Gogh, and Claude Monet) used are extremely light-sensitive. When purchasing an artwork from this period (roughly 1880s – 1920s), it is critical to examine the state of preservation of the pigments and to understand the parameters that will be required properly to display the piece to minimize further change over time.

By having these questions in mind and taking the time to answer them to your satisfaction, collectors can get carried away with their emotions in the best possible sense – to feel free to fall in love with your artworks and to know that you have found a passion in your collecting which will sustain you for years to come.