The Art Group - Insolvency Act 1986???

[bill schwab]

The Art Group based in London has repped my work in the printed matter(posters, notecards, etc.) field for some time now. And although a not a big part of my business, it was still nice to get that royalty check in the mail twice a year. Contact has always been good with them and they've always treated me well.

Sad to report that I've been surprised at receiving what I thought was the mid-year royalty, but turned out to be a cryptic form with no cover letter with a notice of "Insolvency Act 1986". It gives no other information whatsoever. I am assuming this is like the US version of bankruptcy, but still left wondering about some issues. Any help from an APUG member from the UK that is in the know would be appreciated.

I know there are many others out there that have worked with them and some quite a bit. It is a shame that better notice wasn't given as it must be quite a blow to those that do a lot of business with them.

 

[bill spears]

I've just received the same letter Bill ! I only had one image published with them which was a colour transparency and which they still have in their possesion. Came as a bit of a shock to me aswell, they were a very big and well established operation, I thought.
Dont really understand the finer details of insolvency vs bankruptcy vs liquidation etc so cant shed any more light on it.

Bill

 

[bill schwab]

Thanks Bill. Sorry to hear you got stung as well. I only had 6 images with them, but they sold a lot of them consistantly. Too bad. Fortunately they had no originals. Hope you get your tranny back!

 

[Early Riser]

I received the same letter a week ago. I have emailed several people there asking about royalties and what happens to existing posters, I have not heard back from any one yet. Do they dump the posters, sell them to another publisher,etc? Given that these are copyrighted materials and that royalties are due for any posters that get sold I would think that a new publisher/distributor would have to honor any existing contracts.

 

[bill schwab]

A friend sent this link... go to page 16 if it doesn't link directly.

http://www.gazettes-online.co.uk/ViewPDF.aspx?pdf=58782&geotype=London&gpn=11536&type=Issue

I'm doubting that any outstanding balances will be paid. If anything, it will be pennies on the dollar. I've had several magazines go belly-up while owing me money and work and I never saw a dime OR the work again. I was with Picture Group agency many years ago and they too went under. I never saw any of those transparencies again and was never paid what was owed to me. Everyone simply evaporated. Looking like a write-off to me.

 

[Ian Grant]

Insolvency means that a firm of administrators can be appoint to run the company, and see if there's any way of re-structuring &re-financing the company. It generally means that a company can often be saved, rather than going bankrupt, and liquidators called in to sell of it's assets to pay outstanding debts. You just call this something different in the US.

Ian

 

[Dave Miller]

This link may help. The directors had to take the decision to close down because the company could not fund itself.

http://www.insolvencyhelpline.co.uk/insolvency-act/index.php

 

[bill schwab]

You just call this something different in the US.

Chapter 11, I believe. It looks as though the reorganization name for this one is "The Artful Group". How imaginative.

So, so happy I did not have more with them and my condolences to those that do/did.

 

[David A. Goldfarb]

"The Artful Group"

Sounds a bit dodgy to me.

 

[bill schwab]

Sounds a bit dodgy to me.

I agree David. Looks very strange.

 

[Early Riser]

I'm no insolvency expert but from what I have seen my take on this is that they are reforming the company under a new (Artful Group) name and apparently have permission from the court or administrator to do so. I would think that if they plan on continuing to license artist's work for publication that it is not in their best interests to piss off all the artists that they were already doing business with. So we'll see if the reformed company lives up to it's previous legal commitments to those that supplied the copyrighted intellectual properties.

The use of the images was not a sale of property but a licensing of intellectual property and that license may not be transferable to the reformed company. Here's a link to a site that talks about these issues in regards to US law:
http://bankruptcy.cooley.com/2007/0...les-the-importance-of-protecting-your-rights/

 

[David A. Goldfarb]

Maybe that was a bit too subtle. The character known as "The Artful Dodger" is a pickpocket in Dickens' Oliver Twist. Not exactly the association I'd think a company undergoing reorganization would want, I'd think, but it's surely intentional.

 

[bill schwab]

Maybe that was a bit too subtle.

Not at all. Got the Dickens referance. Funny. Just not as humorous without the couple thousand dollars that is usually in that envelope!

 

[David A. Goldfarb]

Alas.