The Art Law Podcast Enforceability and Effectiveness of Art Market Resale Restrictions
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Oct 8, 2024 Megan Fox Kelly, a leading art advisor and podcast host, dives into the complex world of resale restrictions in art transactions. She discusses how these restrictions aim to serve galleries and collectors while often complicating legality and transparency. The conversation highlights the ethical dilemmas surrounding such terms and their impact on emerging artists versus established ones. Kelly also sheds light on notable legal cases that illustrate the challenges of enforcement and the evolving dynamics within the art market.
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Resale Restrictions Are Proliferating
- Resale restrictions are spreading across both major and small galleries and affect emerging and established artists alike.
- Megan Fox Kelly observes the trend reflects market behavior, not just top-tier control.
Collector Bought Twice To Secure Kusama
- Steve describes a buyer who paid full price for a sought-after Yayoi Kusama work and was told to buy a second to gift to a museum.
- That buyer complied because demand and scarcity gave the gallery leverage.
Restrictions Aim To Curb Flipping
- Galleries insert resale restrictions to discourage speculative flipping and protect an artist's market and legacy.
- They cannot reliably tell who is a genuine collector versus an investor, so restrictions act as a blunt protective tool.