This document discusses legal issues for artists, including copyright, consignment, cooperatives, communication, and contracts. It covers intellectual property rights like copyright, what is and isn't protected, and that ideas aren't protectable. It discusses consignment laws in Tennessee, what constitutes a consignment, and how consignment creates a legal trust between artist and gallery. Cooperatives are defined as artist associations that jointly own and market businesses and accept works from members on consignment. The importance of clear communication and written contracts is emphasized, with standard contract terms provided.

1. Legal Issues for Artists
Mary Neil Price, Esq.

2. title
Art and Business
Making money is Art and
Working is Art
and Good Business is the Best
Art”
“Being good in business is the
most fascinating kind of
art”
- Andy Warhol

3. title
1. Copyright
2. Consignment
3. Cooperatives
4. Communication
5. Contract

4. Intellectual Property

5. title
Intellectual Property

6. title
Copyright
The right to copy; specifically, a property right in an
original work of authorship fixed in any tangible
medium of expression, giving the holder the
exclusive right to reproduce, adapt, distribute,
perform, and display the work.

7. title
Copyright

8. title
Tangible versus Intangible
While there is a close relationship between intangible
property and the tangible objects in which they are
embodied, intellectual property rights are distinct and
separate from property rights in tangible goods.

9. title
Exclusive Rights

10. title
Copyright – What is Protected

11. title
Copyright – What is NOT
Protected
Procedures,
Methods,
Concepts,
Titles, Names, Slogans,
Familiar Symbols or
Designs
Works that
have not
been fixed
in a tangible
form.

12. title
Ideas Are Not Protectable

13. title
LEGAL PROTECTION-
CONSIGNMENT
• Three types of legal protection for consignors:
• The Uniform Commercial Code
• State Consignment Laws/ Tennessee
Consignment of Art Act
• Written Consignment Agreements
Protect yourself and your
creations.
Get it in writing.

14. title
Tennessee Consignment of Art Act
(1) "Art dealer“: a person engaged in the business of
selling works of art, other than a person
exclusively engaged in the business of selling
goods at public auction;
(2) "Artist" : the person who creates a work of art, or,
if such person is deceased, such person's heir,
legatee, or personal representative;

15. title
Tennessee Consignment of Art Act
• "Consignment" means that no title to,
estate in, or right to possession of,
the work of art, superior to that of the
consignor shall vest in the consignee,
notwithstanding the consignee's
power or authority to transfer and
convey to a third person all of the
right, title, and interest of the
consignor in and to such work of art;

16. title
What Constitutes Consignment
• …..whenever an artist delivers ….the artist's own creation to
an art dealer in this state for the purpose of exhibition or sale,
…the delivery to and acceptance of …by the art dealer shall
constitute a consignment, unless the delivery …outright sale
for which the artist receives or has received full
compensation…..

17. title
Consignment Creates A Legal
Trust
A work of art received as a consignment shall remain trust property, notwithstanding
the subsequent purchase thereof by the consignee (gallery) directly or indirectly for the
consignee's own account, until the price is paid in full to the consignor (artist).
Art Dealer
Agent/Trustee
The Art
is held in
trust
The Artist
Beneficiary

18. title
Tennessee Consignment of Art Act
"Co-operative" means an association or group of
artists which:
(A) Engages in the business of selling only
works of art which are produced or created by
such artists;
(B) Jointly owns, operates, and markets such
business; and
(C) Accepts such works of art from its
members on consignment;

19. title
Cooperatives
Any cooperative may contract with its members to waive liability for
the loss of or damage to works of art consigned to such cooperative.
Any other provision of a contract or an agreement whereby the
consignor purports to waive any provision of this part is void.

20. title
COMMUNICATION
Address
and
Discuss
issues
Avoid
Conflict
Clearly
Define
expectations
and
responsibilities
Written
Contract

21. title
Written Contract
Use a written consignment contract, since it can
provide benefits for you, obligations for the gallery,
and, most importantly, is required under many
state's consignment laws.

22. title
Standard Contract Terms
1. PURPOSE
2. DESCRIPTION
3. IDENTIFICATION
4. CONDITION OF ART
WORK
5. RISK OF
LOSS/INSURANCE
6. SALES PRICE
7. PAYMENT, RECOURSE
8. COMMISSION
9. GALLERY’S
OBLIGATION TO SELL
10. EXCLUSIVE SHOWING
11. WARRANTY
12. ADVERTISING,
PROMOTION, CREDIT
13. COPYRIGHT
14. DURATION
15. TERMINATION
16. ACCOUNTING
17. CHOICE OF LAW
18. ATTORNEY FEES
19. TRANSPORTATION
RESPONSIBILITIES
20. NOTICE OF
CONSIGNMENT
21. PROCEDURES FOR
MODIFICATION