Consistent with expectations after reports from the court hearing in March, the U.S. District Court in Los Angeles dismissed the case brought by artist Chuck Close and others that alleged violations of the California Resale Royalty Act (the “CRRA”) by Sotheby’s, Christie’s and eBay, and ruled that the CRRA is unconstitutional in its entirety. Similar claims against eBay were also dismissed in a shorter opinion referencing the Sotheby’s and Christie’s decision.
California Law Struck Down as Unconstitutional: U.S. District Court Dismisses California Resale Royalty Act Case against Sotheby’s, Christie’s, and eBay
Topics: Legislation, Resale Royalties, Chuck Close, Commerce Clause, Christie's, Dormant Commerce Clause, Collections, California Resale Royalty Act, Copyright, Sotheby's, eBay
California Resale Royalty Act Case Against Sotheby's, Christie's, and eBay to Be Dismissed?
Donn Zaretsky at the Art Law Blog (whose prior commentary on the case gives excellent analysis of the Commerce Clause and other issues) reports that the U.S. District Court issued a tentative ruling at a hearing on Monday to dismiss the California Resale Royalty Act cases against Sotheby's, Christie's and eBay (Chuck Close is one of the plaintiffs). No written order has come down, but we will report and analyze when it does. This is big news; for the moment the case docket indicates only that the hearing took place and that the judge took the matter under advisement.
Topics: Legislation, Donn Zaretsky, Resale Royalties, Chuck Close, Christie's, Dormant Commerce Clause, Collections, Sotheby's, eBay
Federal Legislation Proposed for Artists' Resale Royalties
In place of rumored legislative efforts last summer, legislation has been formally introduced to codify under U.S. federal law droite de suite rights of resale for artists, under certain circumstances.
Topics: Legislation, Resale Royalties, droite de suite, Resale Royalty, Jerrold Nadler, Christie's, California Resale Royalty Act, Sotheby's, eBay
Christie’s and Sotheby’s Sued over California Resale Rights
Christie’s and Sotheby’s were sued this week by several artists (including Chuck Close) as class action plaintiffs, alleging violations of California’s Resale Royalty Act. The Resale Royalty Act is one of the few statutes in the United States recognizing artists’ rights to some of the proceeds of the sale of their works, even after the initial sale, a concept known as droite de suite. As noted by the Art Law Report last month, there have been noises at the federal level about reviving droite de suite as it is used in Europe, but to date little concrete change has materialized. A useful definition of the idea can be found, with some irony, at the Christie’s website.
Topics: Legislation, Chuck Close, Christie's, Collections, droit de suite, California Resale Royalty Act, Sotheby's