Whether to Art Basel in Switzerland, the Frieze Faire in London, or the SHContemporary Fair in Shanghai, traveling to international art fairs can be an exciting way for art collectors to vacation.  The parties, the people, and the foreign travel coupled with fantastic fine art and photography showcased by hundreds of dealers, artists, and galleries from around the world can prove quite alluring.

But before buying that extraordinary painting, work on paper, photograph, or other “objét d’art,” collectors should be aware of the legal risks involved in buying art abroad. This article does not purport to identify all such risks, or discuss any one risk in detail.  But caveat emptor-“buyer beware”—takes on special significance when acquiring art on the international market, and collectors are advised to consult with a lawyer or other knowledgeable professional before opening their wallet.  If that painting you purchase turns out to be a fake, stolen, gets damaged in shipment, or does not arrive at all, recouping your losses from a foreign seller can prove costly if not impossible.

As one might imagine, the laws of foreign nations are even more varied than the laws of our many states. Acquisitions of art from foreign sellers require sophisticated knowledge about the transactional laws of the source country and the interplay of those laws with international conventions such as the 1980 United Nations Convention on Contracts for the International Sale of Goods, and the Berne Convention, among others.  Letters of credit to protect fund transfers, conflict of law issues, the availability of dispute resolution mechanisms, requirements for enforceable warranties, shipping requirements, and risk of loss presumptions, represent just a few of the complex legal issues at play in commercial transactions in foreign countries.¹

Many collectors now realize that the value of intellectual property rights to a work of art can often be more valuable than the work of art itself.  Owning the art object does not equate to owning the trademark and copyrights in the art unless those rights are specifically acquired. Without ownership of the copyrights in a work of art, or at least a license thereto, a collector may not photograph, reproduce, or otherwise create a derivative work from the object without infringing the artist’s (or other holder’s) copyrights.  Foreign copyright and trademark laws vary by jurisdiction, and may be impacted by international convention.  Successful acquisition of copyrights, either by assignment or license, requires sophisticated knowledge about international intellectual property laws.

Other legal rights attached to works of art that must be considered are “artist’s rights” or “moral rights.”  Derived from French law, the federal Visual Artists’ Rights Act, 17 U.S.C. §106A, and the California Art Preservation Act, (Civil Code §987 et seq.), vest artists in this country with continuing rights to prevent damage, destruction, or mutilation of their works or art even after sale, to claim or disclaim authorship in the work of art and, in California, royalty rights in subsequent sales of the art work under certain.  In foreign jurisdictions, these “artist’s rights” take on expanded protections that are country-specific.  Without obtaining a proper waiver of these rights, if legally possible under the law of the foreign jurisdiction, collectors are forever subject to suit by the artist should damage befall the work of art while in the collection.

Equally important are proper import/export clearances if the work has been created abroad or is acquired from a foreign seller.  Lawful export and import prevents seizure of the art.  As demonstrated by recent demands of Italy, Greece, and China to gain return of their cultural property from museums in the U.S. and abroad, foreign claims may lie dormant for decades before being asserted with the assistance of the U.S. government. By now, many countries have adopted laws that claim ownership of “cultural property” originating from within the country. Definitions of “cultural property” may broadly extend beyond antiquities to more modern works of art considered important to national culture.  Even experienced dealers can misunderstand the reach of these foreign cultural property laws.  To ensure a work of art is legally importable into the United States, buyers should obtain proper paperwork documenting lawful export of the work.  Certain specialty fine arts shippers also work with import/export brokers who can properly arrange for necessary documentation.

Enjoy the travel and the ‘scene’ at international art fairs.  Before buying art abroad, however, be certain you have an internationally enforceable purchase agreement and export documentation in place to guard against the risk of loss to that expensive work of art.

Note: The information contained in this article is not legal advice and does not establish an attorney-client relationship. Readers should consult their own legal and professional advisers in connection with the purchase, sale, and collection of art.

¹ While insurance may help minimize certain risks, it will prove worthless if the collector is not a named insured on a policy that covers all nail-to-nail risks for fine art, issued by a properly rated and reputable insurer with a proven track record of prompt payment to claimants.

By Lynn Mueting

The contemporary art world seems to have inspired a passion that has taken the art fair concept racing around the globe like wild fire.

For example; each fall one the hottest ticket in town is the Frieze Art Fair in London. Dealing strictly with emerging artists, Frieze pulled in an estimated £33 million pounds (approx. $68 million) in 2005. Sales were expected to climb by 35% in 2007, but Frieze promoters did not make their 2007 figures public. Such copious amounts of cash-combined with A-list celebrity attention-have led to a number of fringe art festivals-including the Bridge Art Fair-popping up in London that same weekend, creating virtual art frenzy.

One Collector’s Impression on the Exploding Art Market

I caught up with Colin Walsh, the Managing Director of Cards & Payments at Lloyds TSB Bank, who is also a friend and long-time passionate collector of contemporary art. I asked him what this phenomenon means to him, his company, and on contemporary art as investment.

Colin purchased his first major piece at the age of 24, following his first job out of college. “It was a piece by Bunny Klien, an abstract expressionist painting I bought in Soho NY. I still have it,” Colin said. Since then, Colin and his partner have collected enough works to fill two homes and still require storage. “To me, it’s an exciting way to live. I just feel so connected to my environment because each piece has it own history. Especially with the living artists, I know many of them personally, I know their passions and it brings me a quality of life.”

Colin typically collects works by emerging artists who have already been shown in museums or in highly respected galleries. “We never buy art with the intension of selling it, but it’s always nice to have an eye to the value of your collection.” His collection is eclectic, mostly abstract, with approximately 80% created by living artists. “You know, as you grow and mature the things that speak to you change, but they are all part of me.”

The Stamos that Almost Got Trashed

Colin owns a number of significant pieces, including a work by Theodoros Stamos, a post-modern impressionist who worked with Rothko. “Stamos didn’t have good relationships with galleries and so his work was often not catalogued like that of other important artists of his time. A gallery I work with a lot in San Francisco came across a number of his paintings and I was just taken in by the work. Of course, none of us realised their value at the time. The gallery brought them by my house one evening to have a look. When they were reloading the car, they forgot one piece was propped up against the trash bins-and it happened to be trash night! I decided I wanted it. Now he is quite well known and the purchase of that piece has such a funny story. I love it!”
“Art Festivals - It’s a Good Thing for Collectors”
Colin believes the flurry of activity in the global contemporary art market is a good thing for collectors because they can see more art, as well as gallerists, who get more exposure, and especially the artists themselves. “Even for people like myself who travel a lot, there is no way I can ever see as much art as I’d like to. The biggest problem I see with the Frieze Fair, however, is that buying art in the UK is so expensive at the moment simply because of the strength of the pound.”

How About Corporate Collectors?

In addition to his personal collection, Colin has been involved in his company’s sponsorship of art festivals. “My company (Lloyds TSB) does not collect contemporary art for investment per se, but, the bank did take a role in sponsoring the Bridge Art Festival (a fringe of the Frieze) in London and did so without giving away any money. Our support came by way of inviting customers to attend the fair with an incentive to purchase art.”
For the bank, value was added to the customer experience. For the festival, it facilitated an introduction to the Bridge Art Fair and encouraged participation in something that Lloyds’ customers might otherwise not have known about. “There is always this process of needing to connect artists with people interested in buying art and Lloyds was happy to facilitate that communication. So, it was a win/win situation.”
Of course, there are also risks to the companies that sponsor such events. For example, emerging artists don’t yet have established reputations, while Lloyds bank is a well-established financial institution. “We can never be absolutely certain that our corporate goals will mesh perfectly, but, we always make sure we have the ability to opt out. But overall, many of our customers were impressed by the quality of the work and the range of artist represented.”

Will the Art Festivals Phenomenon Last?

Perhaps this latest “craze” is simply the affluence of a generation eager to move beyond museum posters left over from college days. But there is no doubt that art festivals are bringing in new buyers eager to become serious collectors. As Colin says, “This can only be good for the development of the arts and the artists themselves.”
At the same time, this surge of interest can drive speculation. There is some concern that prices for emerging art is becoming inflated. However, with recent record-breaking modern art sales, Colin thinks “art as investment doesn’t seem to show any signs of slowing.” The Art Festival phenomenon seems to show no signs of slowing either.

Many of the most important fairs-the London Art Fair, TEFAF Maastricht in the Netherlands, Bridge Art Fair and Scope in New York, and Art Basel in Switzerland-already drew record crowds this year. But many great fairs are still to come. To stay informed and plan your travel, check out these sites: http://www.artfairsinternational.com/ and http://artforum.com/guide/

Along with the opportunities these fairs present, there are financial and legal risks associated with purchasing art in foreign countries. Art attorney Denise Alter describes some of these risks and what collectors can do to protect themselves in Buying Art Abroad: Buyer Beware.

The article Are Art Fairs Good for Collectors? gives a glimpse into one collector’s world, from his personal approach to collecting to helping his in helping to sponsor the Bridge Art Fair in London.

While the phenomenal prices brought in at auctions and the explosive growth of art fairs are grabbing headlines, corporate art collections typically generate little news, despite the fact that their holdings have come to rival those of museums and have become a market force. Corporate acquisitions of an artist’s works can define the artist’s reputation and market.

Some corporations want to downplay their collections—in addition to concerns about security, they view their art collections primarily as financial vehicles that offer the potential for appreciation and the certainty of tax write-offs, while lending prestige to the private offices of top managers. Other corporations see their collections as a way to benefit employees, to support emerging artists, and to serve larger community interests. Regardless of their focus, corporate sponsorship of art has become a major force shaping the art market in America.

Highlighting Corporate Collections

Artelligenz.com seeks to highlight corporate collections that are accessible to employees and the public and the people behind the scenes who make them work. In this issue, Laura Matzer, the director of the Microsoft Art Collection, shares the challenges of moving from being an art educator at a small museum in Texas to managing one of the world’s largest collections. She also provides an overview of the collection and its goals and approaches to various business issues.

Links to other well-known corporate collections include:

USB Art Collection

Progressive Art Collection

Deutsche Bank Collection

Debate about the Role of Corporate Collections

Not everyone sees the growing influence of corporate collections as a positive trend. Author Chin-Tao Wu provides an account of the evolution of corporate sponsorship of the arts since the 1980’s and analyzes the complex relationship between government and corporations. In the process, she examines many assumptions; for example, that corporate sponsorship saves tax dollars. Instead of saving taxpayers money, she contends that favorable tax write-offs actually cost taxpayers more than the simple funding of organizations such as the NEA would have.

Links to books exploring the relationship of corporate collecting, government, and the role of art in society include:

Privatising Culture: Corporate Art Intervention since the 1980s, by Chin-Tao Wu

Art for Work: The New Renaissance in Corporate Collecting, by Marjory Jacobson

Click to see the works in the context of their surroundings

The Microsoft Art Collection is one of one of the world’s largest corporate collections, with more than 4,000 works of art displayed in more than 90 buildings in North America and Japan. Since it is meant to be viewed and shared by Microsoft employees, customers, and visitors, the Collection is displayed in both private and public areas—on the Microsoft main corporate campus and in other locations around the world.

By: Laura Matzer

When I was offered an opportunity to write about directing the Microsoft Art Collection for Artelligenz.com, it provided me with a welcome opportunity to reflect on the past three years I’ve spent in the corporate world.

It’s been quite a change from working at various art museums across Texas, where I left behind an art education position at the Amon Carter Museum in Fort Worth, Texas to join Microsoft. The work has never been dull; I often liken it to surviving in the Wild West or trying to herd cats: managing—and juggling—the complexities, organizational challenges, and physical problems of a growing international, contemporary art collection serving over 57,000 employees, on view in dozens of locations across North America and Japan.

The speed, intricacies, and often contradictory situations that arise in the day-to-day operations of a corporation were initially mystifying. Nevertheless, when I joined Microsoft in 2003 I knew it was a great opportunity to share an impressive collection with a sophisticated audience in a stimulating environment.

What most drew me to Microsoft was the fact we have a comprehensive interpretation program—the corporate art program consists of much more than just hanging art on the walls. My ongoing goal is to give employees, customers, and visitors a variety of “entry points” to help them better understand the art on display. For me it is all about accessibility. While keeping to the integrity of the object, I also want to demystify contemporary art for our audience.

About the Collection

The discussion of an art collection at Microsoft was sparked by an employee, who said at a meeting that adding art to the environment would enhance the workplace. A committee was formed in 1987 to look into the possibilities. At that time, Microsoft had approximately 2,000 employees and occupied six buildings. In 2007, Microsoft has more than 61,000 employees worldwide and the collection includes more than 4,000 pieces.

Mission and Vision

Our mission is to create a positive working environment and an appealing business setting, to build customer and community relation, and to educate and involve employees, customers, and community in the art of our time. We seek to promote creative excellence by presenting and interpreting international contemporary art by emerging and mid-career artists of the highest quality. We want to help to create an environment where the arts will thrive and be enjoyed for generations to come.

In partnership with artists and with the business community, our collection seeks to take a leadership role in shaping culture. Microsoft offers interpretive programs for Microsoft employees, their guests, our customers, and the community. Most of these programs are free and open to the public. We also regularly donate interactive tours in the Conference Center in Redmond, WA to fundraising auctions, and sponsor free community tours. (For information about viewing the collection, see the end of the article).

Our approach to placing art is populist—there are no artworks in individual executives’ offices. Instead, we give priority to the common areas and to those locations that have the highest visibility, considering factors such as large windows that can present problems by exposing works of art to direct sunlight (and heat) for extended periods of time.

Works in the Collection

The Collection began with an emphasis on Northwest artists and evolved to include selections of 19th century Japanese prints. By 1999, the Collection embraced the mission to include emerging and mid-career artists from around the world to reflect Microsoft’s standing as a worldwide company. The Collection now includes painting, sculpture, works on paper, photographs, ceramics, studio glass, prints, video, and digital art—all by emerging and mid-career artists from around the world. The collection’s two-dimensional works largely outnumber our three-dimensional works because of the number of available office walls and hallways. We also have seven pieces of video art. We hope to give employees online access to these pieces in the future.

As an international collection focused on emerging and mid-career artists, we seek to find and support talented young artists early in their careers. That we also emphasize regional art at the corporate and subsidiary campus locations may be unique among corporate collections.

Some recent acquisitions include works by the following artists:

• Benjamin Edwards, an artist from Iowa who lives and works in Washington D.C., who reconfigures the familiar landscape of strip malls, gas stations, super stores, and so on into computer programmed composites.
• Satoshi Hirose, born in Tokyo, who lives and works in Milan. We recently acquired two of his sculptures, one for the Tokyo campus and one for the corporate campus in Redmond,WA.
• Satoru Aoyama, born in Tokyo, who now works in London. His Easeful City, which is now part of the Collection, was recently featured at the Pulse Art Fair in New York.
• Amir Zaki, whose work explores the urban landscape through photography, video, and sound.
• Jaq Chartier, a Seattle-based artist and co-owner of Platform Gallery, whose abstract work concerns visual references to DNA gel electrophoresis and the migration of water soluble stains.

We recently also added several commissioned works, including:

• Sol LeWitt’s Wall Drawing # 1000, which was commissioned in 2000-2001for the Building 34 café.
• Ursula von Rydingsvard’s outdoor sculpture, Skip To My Lou, which is outside Building 43.
• Yunhee Min’s Invisible Cities (Difference and Repetition), 2003, Wall Drawing is our most recently commissioned work. It is located in Building 36.

We are currently negotiating another commissioned work for the new plaza and the surrounding buildings that will be constructed soon at the main campus.

Managing the Collection

My challenge, and what keeps me completely absorbed in my work, is to engage employees, customers, and the general public who visit Microsoft with new works of contemporary art, and to find new ways to interpret those works and demystify the process of viewing and enjoying art in our work environment.

Working with Employees

We have amazingly talented, bright people at Microsoft, many of whom majored in art and art history. I’ve had the pleasure of meeting many of them. In fact, I recently met an employee at one of our art tours who was, prior to her 10 years at Microsoft, a curator at SFMOMA.

Many of our employees are passionate about the art around them. For example, when Building 127 was de-installed for re-carpeting and repainting, we received several urgent email pleas to “save the white horse.” The piece in question was Joseph Piccillo’s E-32, a charcoal on paper image of a large white horse that fills the composition, in full gallop towards the viewer. Made in 1991, it measures 81 x 51 ½ inches and makes a high visual impact with its sight line at the end of a long hallway. Although we like to let works of art “rest” in storage for periods of time, we also evaluate individual employee requests. In this case, since the art lighting is rather low and there is no outdoor light that affects the piece, we decided to let the piece remain in B 127 for an extended run.

The Collection has also, directly or indirectly, encouraged employees to collect art on their own. Last month I received an email from a former executive employee at Microsoft in the early 1990s, who is now an art collector based in Chicago. In a recent interview for the April issue of American Art Collector magazine, he said that working at Microsoft and being around the art in the work environment helped him to develop an appreciation for art.

Deciding What to Collect

To determine what we collect, I research a variety of sources. The New American Paintings journal is an excellent resource and I read the Arts section of the New York Times and numerous art magazines every day; probably over 30 publications. I also receive about 70-100 pieces of mail a day, mostly art gallery announcements. In making decisions, I closely follow our acquisition policy and mission, and I work in concert with professional art advisors. Even though the acquisitions brought in are finalized by me, I constantly strive against creating a tyranny of taste.

I also consider whether there is an obvious gap in the Collection that an artist’s work would fill. Does the artist represent a region where Microsoft is located, reflecting the diversity of employees? And, since the large majority of artworks are relocated about every two years, will they be appropriate elsewhere? In researching the collection’s strengths and weaknesses, I found ample additional opportunities to showcase art by emerging and mid-career artists from China, India, and Russia, as well as several other countries. This will also serve us well as we begin to place art in new international locations, such as Tokyo, and possibly Bangalore and Hyderabad.

While one of the Collection’s objectives is to create a positive work environment, it is inevitable that a particular work will not suit everyone’s taste. Contemporary art often challenges what constitutes “art” which, in turn, challenges the viewer. In our opinion, this creation of a positive or negative dialogue is what makes having a critically acclaimed art collection on campus so exciting and meaningful.

Business Aspects of the Collection

As one might suspect, we use Microsoft software for our collection management database, which is currently being updated from Microsoft Access to Microsoft SharePoint. Although we initially considered 3rd party collection management software designed for museums, we quickly learned that updates could pose security issues. When we learned that museums the size of the Met work on a Microsoft SharePoint-based platform, the decision was easy.

We have an outsourced staff of four full-time individuals: a Registrar, a Collection Manager and Researcher, a Collection Administrator, and a Lead Art Installer. Considering that we manage a collection comparable in size to that of a small art museum, we are very efficient and coordinated in the work that we do.

Although we cannot share detailed budgetary information publicly, the budget is based, in part, on the number of new buildings in our portfolio. Each new building receives a proportionate share of new art, commensurate with the building’s size and number of occupants. Also, the Collection’s scope evolves each year to include new subsidiary campuses worldwide.

Acquisition Policies

We manage acquisitions following extensive criteria and guidelines, which are itemized in our Acquisition Policy. Acquisitions are based on the needs and requirements of the Collection per fiscal year. Each acquisition must be appropriate to the Collection’s mission and be an authentic work of art; i.e., it has to conform to a prevailing standard of high aesthetic merit and historical significance. It must also be free and clear of any encumbrances of title, subject only to the artist’s underlying copyright, and may not be of questionable provenance.

Because the art is hung in a work environment where a diverse workforce often spends long hours, we avoid acquisitions that are overtly political or religious in nature, as well as partially or fully nude figures. We also consider some of the following points:

• Is the artwork practical in an office or outdoor setting?
• Will the artwork be one that employees want to “live with,” an object to discover and rediscover?
• Is there an obvious gap in the Collection that this artist’s work would fill?
• Does the artist represent a region where Microsoft is located, to reflect the diversity of Microsoft employees?
• And, since the large majority of artworks do not stay in one location, will they be appropriate elsewhere?

Our policy is not to accept unsolicited inquiries by artists or their representatives. For artists, we strongly recommend seeking representation by an art gallery and having the gallery send us materials directly. We have a de-accession policy for artworks that may be considered inappropriate to the workplace. Also, we do not accept gifts or donations of art objects in-kind or incoming art object loans. We do, however, regularly loan select objects from the Collection to arts institutions and organizations on an as-requested basis, after ensuring that each organization is properly insured and bonded.

Interpretative Programs and Outreach

The education and outreach program is fundamental to the Collection’s mission. We offer a variety of programs, publications, and services to promote lifelong learning in the visual arts and to stimulate independent and critical thinking skills. We seek to share and convey a passion for art and for art education by educating employees, customers, and the public about the Microsoft Art Collection. We also have an active object loan program for local, national, and international art museums.

Our programs include:

• The Artist Lecture Series, begun in 1999, where artists represented in the Collection speak to employees and the general public about the piece in the Collection, the process behind their art, and what they are currently working on.
• The Artful Readings series, launched over a year ago, which is a book club program designed to recreate a Parisian salon-style atmosphere, where small groups can discuss an art-related fiction or non-fiction selection as it relates to specific works in the Collection.
• In the past, we offered a series of Collecting Today programs in collaboration with Sotheby’s, giving beginning and established art collectors an opportunity to hear panel discussion by artists, auction representatives, gallery owners, curators, and a seasoned collectors discuss collecting in a particular medium.
• We also offered a variety of Special Programs, two of which were held at the Seattle Public Library, on diverse topics such as corporate art collecting in the United States and artists who “mine” the library for inspiration and subject matter in their work.

Visiting the Microsoft Art Collection

If you’re in the Redmond, WA area, please call 425.421.1312 or email artevent [at] microsoft.com with your contact information. We’ll let you know when there are organized tours at the Microsoft Conference Center (MSCC) that you can join. If you’re interested in an individual or small-group tour (fewer than 10 people), the MSCC is occasionally open for self-guided tours. If your group is larger than 10 people, we can schedule a docent-led tour. Launched in 2006, we now have an employee-docent program that trains employees to lead tours of the Collection and to share their passion about having art at work with others.