A fertile canvas for fraud?

Although the Indian art scene has evolved, paperwork on rights and contracts continues to be sketchy.

A few days ago one read about New York’s Marianne Boesky Gallery losing a lawsuit against sculptor Diana Al-Hadid, an artist they used to represent till the year 2019; the point of contention being the ownership of a bronze sculpture. The gallery had advanced money for the fabrication of the work, on the basis of which they claimed ownership. Despite contracts in place, the matter ended up in a court, where the ruling was in favour of the artist.

In India, where paperwork in the art industry has been practically nonexistent until a few years ago, and most of the interactions happened based on verbal commitments and mutual trust, the art world is evidently a fertile ground for potential fraudulent actions. Although the art scene has evolved to an extent now with some amount of paperwork in place, contracts and agreements continue to be largely sketchy with bare frameworks for functioning.

Instances where artworks and payments are withheld by galleries and dealers, or where artists sell artworks privately despite agreements with a gallery, in order to avoid paying them their share, are some of the most common dispute-causing activities. Some of these are settled amicably, while often artists maintain silence since they do not know who to turn to — the thought of opting for a legal recourse can be daunting. The time, effort and money involved in pursuing long-drawn lawsuits remain a huge deterrent.

Sort out in advance

To list out, a few factors that ought to be clarified right at the start include terms defining gallery representation, exclusivity, commissions on sales, duration of representation, discounts, geographical coverage, consignments terms, exit clause and jurisdiction in case of any conflict — all of which ought to be sorted out in advance. Similarly, in the case of a sale, payment terms, transfer of copyright, fair use, royalty, and proof of authenticity are some of the points that should be covered in agreements and contracts. Although artist contracts and agreements are available online, these are best used as a template and adapted according to specific requirements, depending on individual situations and the nature of the work.

The good news is that changes are taking place in the Indian art world as well and most professional galleries, consultants, curators and artists are putting together terms, conditions and agreements that cover various aspects of business relationships. Many of them are also consulting law firms and advisories to ensure that in case of any dispute, legalities are taken care of.

The author is a Bengaluru-based art consultant, curator and writer. She blogs at Art Scene India and can be reached at [e-mail]

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