Lesson3_LEM_02102024

1.

• Law, Management and Economy - Lesson 3
• Law of Professionals
• Judit Reijnders

2.

OUR LECTURE STRUCTURE
LAW
1 – Introduction, Theory, Constitutions
2 – Legal Systems, The Tree of Law, Legal principles, International Law
3 – Contracts, Companies, Culture and Law
4 – History of Copyright and Digital Challenges
5 – Human rights and GDS
ECONOMY
6 – History of Econimics
7 – Financial definitions
8- Challenges of the Digital Ecosystem
9 – Freelancers, New Ways of Work in the Cultural Industries, Circular economy
MANAGEMENT
10 - Organisations
10 – Self management
Please always ask in case of any language or basic understanding issues!

3.

HW 2A 2B
• 2A
Financing questions
Competition
• 2B
– Licenses: location, safety, noise, waste management,
– Contracts: artists, maintanance, vendors, !!exclusivity of content
– IP related: original artwork, no infringement?
– Damage related: vandalism or damage, who is responsible?
– Human rights related, which court?
– Insurances
– Review of contracts?

4.

Content
• Contracts and Art Contract Content, Contract
Types
• Practical Advice
– Author
– Product, value
– Clients
– Industry Trends and Issues

5.

Basic Contract Elements
Contract:
Contractual freedom
an agreement that can be legally enforced!!! (written)
Parties:
2 or more parties (private individuals or organizations)
Content:
They agree either to do or not to do something
Mutual agreements, mutual services or service for value or conditional
terms
Lawful content
Contract focusses on goods or services:
tangible, non tangible
(Goods: matter of ownership, usage, utilization/exploitation)
(Ownership: primary, secondery)

6.

Typical Art Contract Content
• Product or service (service: installation,
publication)
• Offer and Acceptance
– Product (description), price (date, way of payment)
– Contract creates legally enforcable duties
• Considerations
– Copyright issues (alterations, multiplications)
– Authentication
– Agreement on future performance, scope

7.

Typical Art Contract Content
• Warranty
– Implied warranty
– Express warranty
• Excuse for non performance
– Natural causes
– Vis maior
– Change of conditions, contracts should/can be
adjusted
• Breeches
• Remedies

8.

Contract Types
• SALES
– Simple buy and sell
• COMISSION / work for hire
– Details
– Scale of usage
– Limits of project
• CONSIGNEMENT
– Agreement to expose
– to publish
– to promote
– to sell
• MUSEUM CONTRACT

9.

Commissions
Contract to make a piece fo art: character design, portrait design, illustration, logo
Meet the client first face to face, people are nicer than on e-mail
Clients should tell you what they want, or what they do not want, clients usually can form an
opinion after they see the first draft or version
Instruct the client on the project (timeschedule, work steps)
Have milestones in the contract – during the development max amount of changes
Also set criteria for changes after the work is done, any extra work or changes are extra money, new
contract
I do not know what I want I need to see it
Even if you agree on first idea they may just not like it the next time
Clients have no shame to change their minds

10.

Consignment
• Consignment contract
– artist makes it with someone who will represent them as their sales
agent
– Can be exclusive or not, should have a date
– Agree on reporting and communication
– Details of exposure and promotion
– Responsibilities on extra cost related duties, transport, insurance,
promotion, banking costs
– Termination
– Copyright terms
– Changes of representation duties, non assignable non delegateble
duties
– Choice of law
– Witnesses, why 2!, minimum 2

11.

Museum Exhibition Contract
• Control the area of professionality, share
responsibilities accordingly:
– Location related tasks vs artistic tasks
– Promotion and technicalities
– Copyrights vs sales related issues
– Detail and distribute cost related issues as clearly as possible
– Have a very clear timeline and milestone list to control timing
– Museums may face issues with theft damage (artist should
have this in contract)
– Are there any funds available to finance certain costs?

12.

Contract
• Do not work without a contract
• Do not lift a finger before a contract is being signed
• Non refundable deposit – third or half,
• Killing fees – make sure you only work without it only to very trusted
companies –protection
• Cancellation payment schedule in projects
• Invoices – always send an invoice
• Receipt – break down the work on your invoices include costs, reflect
back to the contract

13.

Author
• Identify yourself:
– Name, specification, webpage, e-mail address,
– Tax number, company name, nationality,
business/work related address
• You own the copyrights, define this in your
contracts
• Think with your own head but consider how the
others want or can make money with your work

14.

Your Product
• Have your work documented
• Keep track of done and undone work
• Do your records of your work in a proper way,
build up a work or photo archive, high quality
and consistent style
• Archive your networking and correspondence
as well as your contracts

15.

How to Price Your Art
• A lot of artists are getting very nervous when
it comes to pricing:
– Too much, too little? Constant uncertainty
– Fluid, it is not a fixed thing
– HW3 – PRICING STRATEGIES based on linked book
of Chris Do

16.

Art Value
• Where you sell
– Collectors, galleries – there is a relationship to
build on
– To have an open studio event has a less unique
message
– Sell scatches, print – entry sale, gives a feeling that
they invested in you (gallery pieces should not go
online)
– Volume vs price

17.

Layers of Artistic Value
• The material
• The work
• The easthetic value
• The audience impact
• Classic masterpiece
• Cultural heritage item
• Contemporary art piece

18.

Price Related to Work Content
• If its very good should be expensive, they do not
buy
• It must be really special when it is very expensive
– think also about the other artists, consider the
art community as a whole
• Very expensive will also immediately have an
insurance issue
• USD 50000 should not go among pieces maxing
USD 1000

19.

Buyers
• Art lovers
• Investors private and corporate
• Professionals: exhibitors, agents, museums,
publishers, borrowers, galleries, auction
houses
• Financors: fund, grants

20.

Clients Review
Google the client
Google what they may want
People, company, this can be a better entry, competitive advantage
Galleries do not look at all the work – 95% of artists just send without finding out about
the specialization of the gallery
Is there a university gallery or a gallery service database in your country?
Know what they work with …photo or print? This may save your time with missed
applicaitons
Networking during studies – gallery contacts being made
Gallery directors usually hire their friends or having references, hardly any artist would
be used as a cold call
Family members asking for free art, friends…..too
If you just cold calling, hardly any answer will come back

21.

People Use Your Work
• Sell for one time use – book cover, webpage – you can say if they
can or not to alter your work
• Selling all the rights, should not do
• Sell the artwork, if they ask they do something with it, they own
the artwork, they do not own the image, this should be clear!!!!
• Stolen artwork – watermark can also be photoshopped out, do
not publish your artwork online, or put logo or webpage name
on your work
• Change the color of your artwork, write poems on it, people do
not make money on it, call your lawyer if pepople sell mass
product with your artwork

22.

Gallery Rule
• Galleries should not charge you for putting up
your work
• Unless it is a small jury fee USD 30 max…..
• Otherwise they have no reason to sell your
work, they get income from you already

23.

Online vs Gallery
• Online is 24/7 12 months a year
• Gallery maybe a month a year you are exposed,
framing are expensive
• Online the shipping is very expensive
• In the case of gallery they have to ship on their
own costs – damages….
• Marketing degree is not neccessary for an artist is
not, specific expert – gallery or expert advise is
best

24.

Terms are legal terms – best is to check in
local legislation
• Sales - adás-vétel
• Commission – megbízás/vállalkozás
• Consignment – bizományos
• Fiduciary - ügygondnok

25.

Commissions and Other Fees
• Galleries ask about 50% (30%, maybe ngo)
• Online sales maybe also commissions,
otherwise the artist has to do the whole
promotional work
• What do galleries do for the 50%: Foster the
artists, events, publicise work, network, put
together the exhibition, pay press and curators
• These costs the independent artist would have
anyways….

26.

Artwork Authentication
• Title, owner, authentication/certificates
• Registries of art losses exist internationally,
(watermarks, auhtenticity marks)
• Forgery, professional judgement (forge, fake, stolen)
• The seller has to guarantee the „authorship”
• Court case – mutual mistake can be stated
• Express guarantee
• Art dealers and no art dealers
https://www.artsy.net/article/artsy-editorial-collectors-certificates-authenticity

27.

International Law References
• Association of Art Museum Directors
• 1970 UNESCO Convention
– code of ethics for member states to stop buying work illegally removed from
its country of origin
• Authentication process:
– Art expert to check work and signature
– Technological development helps
– Ownership history and documentation
• International Counsil on Museums, International Observatory on Illicit
Traffic in Cultural Goods, International Foundation for Art Research
(US)
• www.authentication inart.org
• Berne Convention

28.

Financial Crimes Enforcement Network
• The U.S. government’s bill comes hot on the heels
of a large slate of EU legislation drafted in 2018 and
implemented across 2020. European AML efforts
go back before the creation of the union under the
Maastricht Treaty (1992) to 1991, when AMLD1
(Anti-Money Laundering Directive 1) introduced
preventive actions like customer due diligence, user
identification, and transaction reporting.
• Exports, taxes…

29.

Food for Thought
• Art Law Bookp57-76, p97-116 CH 4 and 6
• Youtube – Chris Do – The Futur pricing, value,
make your own studio
• https://www.youtube.com/watch?v=jE53O1Pz
mNU
• https://www.youtube.com/watch?v=ivKnj9ffc
mE
• https://www.youtube.com/watch?v=rAcdX5jR
RgQ
• Chris Do book scanned version 40-44 for

30.

Thank you for your attention!
• See you next time!