CALIFORNIA ALREADY HAS A RESALE ROYALTY ACT, HOW IS THIS DIFFERENT?
This site could be considered an enforcement mechanism for what is essentially an unfunded mandate.

There is also the matter of relevance. The California Resale Royalties Act (CARRA) only helps established artists placing work consistently in the high four-figure range. The law ignores the vast majority of struggling artists so I don't consider it relevant. Our goal is to liquefy the potential overhanging art market, not help the successful practitioner.

More important to the average artist may be the ability to sell their work -- period. The main idea then, from an economics standpoint is that most art is currently both overpriced and undervalued. Our model should help bring prices down and (paradoxically) it should also bring overall values up.

So, while CARRA was a good step forward, it was more a Band-Aid on the problems plaguing the art market than an in-depth solution.

SINCE YOU SEEM TO IMPLY THAT ARTISTS ARE RIPPED OFF, WHY SHOULD I SELL MY WORK FOR EVEN LESS?
A discount is necessary to validate the option contract in lieu of the Artist paying the Collector what in contract law is called a fee for "consideration."

More critically, we see the idea of artists holding out for higher prices as damaging to both individual artists and the profession. The odds are high that an artist who holds out for fame will probably remain undiscovered. When this happens, the profession, as a whole, suffers from a lack of information about rational sale prices -- what economists would call "transparency." Transparency is a good thing for society -- a bad thing for information-hoarding sellers. The existing "opaque" market, is characterized by middlemen who monopolize and control price information, much as they did in the stock market until the advent of computers. If the idea of transparency makes sense to you, you will see how our Options allow you to "have your cake and eat it too."

We do predict a period of artificially depressed prices as our system catches on. While artists will benefit greatly from transparency, buyers and the established dealer system will also benefit as art becomes a more stable asset class. And, if valuation concepts used in other markets apply, the price you can sell your work for IS the price it's worth. The great thing is that you can now get your work back when you do become famous, as many artist hope.

DOES SECURITIZED ARTS HAVE A LICENSE TO DO THIS?
While we don't need a special license to mange agreements between two parties, we do have several securities licenses that qualify us to act as a market maker should the need arise. These licenses include Financial Industry Regulatory Authority or FINRA, (formerly the NASD) Series 7 (Broker's License). This General Securities Representative Exam is the most comprehensive financial securities exam offered by FINRA. We also have a Series 65 which allows us to act as Investment Advisors.

In addition to the standard "broker's licenses" above, we also possess a Series 63 license, (the Uniform Securities Agent State Law License), which most brokers don't have, it allows us to act as a limited registered representative who solicits orders for corporate debt and equity securities such as common and preferred stock, bonds, warrants, and more. So, while our licenses are not necessary, we do use the knowledge they represent to design and improve ways to best serve you -- our client.

DOESN'T TURNING ART INTO A COMODITY CHEAPEN IT?
While I understand this traditional assumption, it seems to be perpetuated by an existing system which encourages artists to be ignorant of commerce while some dealers and collectors legally profit from post-sale works. The artist may as well be told, "Don't you worry your pretty little head about that filthy, dirty art market... Better still, wait until you are dead so someone can take all the profit.

ARE YOU OPPOSED TO THE DEALER SYSTEM?
No, our target market is made up of artists who have little chance of attracting a dealer in the face an unfair transactional market. We actually feel that dealers have an important role. Their expertise makes them valuable in an advisory capacity, in addition to a market making role. Unfortunately, many viable artists will not be able to attract a dealer.

Our goal is more to offer an alternative to those facing the prospect of no sales below the auction house end of the market.

If you have an argument that artist are fairly compensated I'd love to hear it. If it's good, I'll even post it on this site.

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SECURITIZED ARTS . PO BOX 99402 . SAN DIEGO, CA . 92169 . (619) 341-4ART / 341-4278 . info@SecuritizedArts.com