Saturday, May 09, 2015
A word about the California resale royalty decision
A strange note has crept into some of the coverage I've seen of this week's 9th Circuit decision in the California resale royalty. Some people seem to be reading it as making California a less hospitable place to sell art than it was before. (Here is one example: Will High-Priced Art Ever Be Auctioned Again in California?) But this case is not about sales within California. Before this case, the law applied to sales within California and sales outside California by California residents. The 9th Circuit has now affirmed the lower court ruling striking down the second part ... which means the law still applies to sales within California. Nothing has changed on that front. So if high-priced art is never going to be auctioned again in California, it's not because of this week's decision.
Posted by Donn Zaretsky at 1:12 PM