UK Law and Practice Contributed by: Margherita Barbagallo, Sanskriti Mohta and Nilojana Nirmalan, Dragon Argent
Dragon Argent 63 Bermondsey Street London SE1 3XF UK Tel: +44 020 7686 0000
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1. Art Law Framework 1.1 Relevant Authorities and Legislation The art law framework in the United Kingdom (UK) is not contained in a single statute; instead, it is shaped by an interplay of intellectual property (IP) law, con - tract and sales law, and market-specific regulations governing cultural property and anti-money launder - ing compliance. The Copyright, Designs and Patents Act 1988 (CDPA) The CDPA provides the core copyright framework for artistic works. It determines who owns the rights in those works and regulates copying, publication and communication to the public. Importantly, it grants art - ists moral rights that protect attribution and the integ - rity of their work. The legislation makes the artist the first owner of copyright, subject to employment and contractual exceptions; this means that it is relevant not only to the creation of artworks but also to their sale, exhibition, reproduction and commercial exploi - tation. A key principle is that ownership of a physi - cal artwork does not carry ownership of copyright; a collector or museum may lawfully possess an art - work while still requiring permission to reproduce it in catalogues or online. The act also addresses orphan works, where the copyright owner cannot be traced, by enabling licensing through regulations. Artist’s Resale Right The Artist’s Resale Right Regulations 2006 grant art - ists a royalty on certain resales of their works. The right applies when a qualifying work is resold through an art market professional for GBP1,000 or more. See further at 3.3 Resale Right .
Contract and Sales Law Contract law governs most art market transactions, including consignment, sale and loan agreements. The Sale of Goods Act 1979 is particularly significant because art transactions are, in legal terms, con - tracts for the sale of goods. It provides default rules on transfer of title, correspondence with description, and quality. The nemo dat principle means that a pur - chaser cannot acquire better title than the seller holds, making provenance due diligence essential. The Mis - representation Act 1967 is also highly relevant, as art transactions often depend on pre-contract statements about authenticity, attribution or condition. Where such statements induce a purchase and prove false, the act provides remedies including rescission and damages. Cultural Property and Export Control The Export of Objects of Cultural Interest system reg - ulates the exportation of cultural goods. If an item is deemed a national treasure under the Waverley criteria (historic, aesthetic, academic importance or signifi - cant association with the UK) an export licence may be withheld to allow a UK institution the opportunity to purchase it. The Acceptance in Lieu (AIL) and Cul - tural Gifts schemes allow pre-eminent objects to be transferred to the nation in satisfaction of tax liabilities or in return for tax incentives. Anti-Money Laundering Regulations The Money Laundering Regulations 2017 impose obligations on art market participants, including gal - leries and auction houses, to conduct customer due diligence on transactions above certain thresholds. These requirements prevent the art market from being used to launder illicit funds.
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