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The Digital Art Auction Process

Here are seven steps to a sale using The Digital Art Auction:

1) Artist offers to release

The artist:

·        declares the work of art that they have or will have produced (with time estimate).

·        specifies the means by which this art is to be validated, e.g. trusted third party (the choice of which can be mutually agreed between artist and audience).

·        specifies the form in which it will be delivered, e.g. CDs with special ‘collector edition’ cases, digitally signed binaries via e-mail, etc.

·        describes and commences the preview process: demos, samples, low quality previews, private viewings, published reviews, etc.

2) Audience bids on price

Over a period of time the audience places bids for the maximum per copy value of the released art that they will pay.

3) Bidding Information

Information concerning the current bids is freely and continuously published (in real-time, preferably).

4) Review Bids

The audience may review and adjust their bids at any time prior to sale

5) Trying the Deal

The artist at a time of their choosing may try the deal (bidding is suspended)

6) Validation

The validation process is performed in a reasonable time. If validated, the deal is done, otherwise the bidding process continues. The validator’s findings are published either way.

7) Completing the Deal

With the deal done, the artist specifies the per copy price and collects this from each bidder whose bid met or exceeded it. The release edition of the art is delivered to each successful bidder (within a reasonable amount of time).

Caveats

Bidders must have created a central fund with a recognized fund holder (PayPal say) from which they can support their bids. While a bid is made, the bidder is committed up to the value of that bid – an amount up to the value of the bid will be withdrawn when the deal is complete. Bids have to be guaranteed – imagine the poor artist chasing each bidder.

The validator is expected to stand entirely upon their reputation, so is usually immune from prosecution (unless they provide guarantees). Contingency must have been made in case they are unable to perform the validation when required. The validator will have an additional role in supplying at least a copy of art to the bidders on the artist’s behalf, if the artist is unable to deliver it as proposed.

As bids are able to be changed at liberty until the deal is tried, there is also no redress to the artist if any of the bidders decide that the art is unsatisfactory after the deal has been done. This is a ‘sold as seen’ kind of auction.

The artist has the responsibility to ensure their art remains secure until the deal is done.

What Happens to Copyright?

I’m not really sure how long copyright is going remain useful, but there’s little reason why it shouldn’t continue to be recognized even after a digital art auction has completed. You never know, someone may still value it.

It’s up to the artist what they do with the copyright to their art, but they should make it clear from the outset what will happen to it. They have the following choices:

·        Retain the exclusive copyright

·        License the art into the public domain (or otherwise nullify the copyright)

·        Transfer the copyright to the successful bidders

·        Share the copyright with the successful bidders

As to which option the artist should go for, which one will encourage the best deal, this probably depends upon the nature of the art.

Incidentally, the audience is not guaranteed that what the artist says will happen to the copyright will actually happen – this is only backed up by the artist’s reputation.

It may be discovered that the artist has infringed someone else’s copyright for example. In this case each bidder will at least have a copy for their money, but they may no longer be able to freely copy it.

This work is licensed under a Creative Commons License.